Unfortunately for many households across the UK, when it comes to their energy bills, the only way is up over the next few months.
Prices are set to rise across the board as smaller energy firms collapse amid the rise in supply costs – six suppliers have gone bust within a couple of weeks, including PFP Energy, Money Plus Energy, Utility Point, People’s Energy, Green and Avro Energy.
Customers will be switched to a new provider by energy watchdog, Ofgem, but they face a new tariff, as do people who are still with their existing energy suppliers.
The increase in global costs for gas and fuel is pushing prices higher, with some fearing hard hit families will have to choose between ‘eating and heating’ this winter.
How much could bills rise by?
How much are energy bills set to rise by?
The regulator Ofgem’s price cap – which outlines the maximum suppliers can charge customers on their tariffs – was already set to rise by 12% to £1,277 a year for average use on October 1.
Households that use prepayment meters will see average energy bills rise to £1,309 a year.
Analysts are warning that the cap could go up to between £1,440 and £1,500 in the spring of 2022, if the rise in wholesale gas prices is sustained.
The cap is reviewed and can be changed every six months.
Can I stay on the same tariff if I switch suppliers?
Some might be hoping, if their supplies goes bust, they’d be offered the same tariff as they see out their initial agreement.
In previous years, a new supplier sometimes honoured the old firm’s tariffs, but that’s unlikely to happen now.
Ofgem has confirmed that the default suppliers can put the customers they inherit on is a price-capped tariff.
Customers who were on the best fixed-rate deals taken out nine months ago will see bills rise by as much as £250 a year if their supplier goes bust and they stay with the replacement supplier chosen for them.
If you are moved to a new supplier, get in touch with them to ensure you are on the lowest deal possible.
How to save money on your energy bills
Returning with his show Money Show Live last Thursday (September 23), money expert Martin Lewis laid out some tips for people looking to save where they can.
He reminded viewers that, despite most energy suppliers pulling back on offers as supplies run short, it’s still worth doing a price comparison and shopping around.
He said: ‘Remember, most comparison sites hide tariffs that don’t pay them and virtually no tariffs are paying them right now so you won’t see any unless you click the options which says “show me whole of market.”’
If you’re not looking to switch suppliers but still hoping to cut costs, there are some simple steps to try.
- Turn things off – Figures published by British Gas earlier this year suggested that turning off your TV and set-top box (instead of leaving it on stand-by) could lead to savings of roughly £24 a year. Since prices have gone up, the potential savings are even higher still. Similarly, turning off lights in rooms you’re not in will cut your costs.
- Bleed your radiators – a properly working heating system will use less energy to warm your home. You can find out how to bleed a radiator properly here.
- Spend less time in the shower (or shower elsewhere, like at your gym) – Even spending one minute less in the shower could cut your energy bill by £4 a year for each person in your household, figures reported from the Energy Saving Trust estimate.
- Do smarter laundry loads – don’t run the washing machine for just a few shirts and socks. Plan your laundry loads so you’re reducing the energy used.
- Skip the tumble dryer – once again, run fewer but bigger loads, and try to wash and dry clothes of a similar fabric at the same time. By putting items in with the same drying time, you can run shorter cycles.
- Draught-proof your house – stopping heat from escaping through gaps around doors and windows is one of the easiest ways to save energy and money. Identify problkem areas, an duse draught-proofing strips or silicon-based fillers.
Read more energy saving tips here.
If you are struggling to make your monthly payments, get in touch with your supplier as they have to help you come to a solution.
Find out what steps you can take via Citizens Advice.
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