Energy bill warning as price cap confusion could see households hit with shock rise

HOUSEHOLDS are being warned they could pay MORE than £2,500 a year for their energy bills as confusion around the bill cap remains.

Energy bills will freeze at £2,500 for two years under the energy price guarantee from October 1.

Some customers think that £2,500 is the absolute maximum that you can be charged on their bill - regardless of their energy usage.

But that is not the case. This is simply a representation of the average household's bill, not a fixed upper limit.

The cap is on the amount that energy suppliers can charge for the unit price and standing charge per unit of energy.

That means bill can still be higher or lower, depending on how much energy you use and the size of your home.

So if you use more energy, you'll pay more - if you use less, your bill will be lower.

Experts have warned that the muddle could cause households to ease up their regulation on how much energy they are using - and they could be hit with a nasty bill this winter.

Uswitch energy expert Ben Gallizzi said that while the energy price guarantee will "help a lot of households through the winter", there is "still a lot of confusion about what has been announced".

He added: "Our research found that almost two fifths of households wrongly believe that the energy price guarantee means their bills cannot go above £2,500.

"It’s possible the announcement has created a false sense of security for some, especially for larger households who may pay significantly more this winter."

Which? energy and sustainability editor Emily Seymour reminded households to take a meter reading ahead of the bill hikes.

This is so they don't get overcharged for their energy usage.

If you don't submit readings to your supplier, they'll estimate your usage - which can usually be higher than what you actually use.