BILL BLOW
Energy bills set to rise again this spring hitting millions of households, say experts – can you get help?
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ENERGY bills are set to rise again for millions of households this spring, according to experts.
Cornwall Insights predicts the yearly cost of running your gas and electricity will rise by £85 from £1,738 now to £1,823 from April 1.
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It would be the third consecutive rise in price-capped energy bills since the low of £1,568 between July and September last year.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: "Households have been hit hard over the past few months, and with bills set to rise for a third consecutive time the pressure is not letting up."
It's worth bearing in mind, Cornwall Insights are only predictions and the energy regulator Ofgem will announce the cap on February 25.
Around 26million households on standard variable tariffs (SVTs) in England, Wales and Scotland which are subject to the price cap.
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The price cap sets a limit on what energy firms can charge customers per unit of gas and electricity though.
The price cap is the amount paid annually for the average dual fuel bill, and could be higher or lower depending on usage.
Dr Lowrey said Cornwall Insights expects the price of energy bills to rise in the spring due to an increase in the cost of wholesale gas in Europe.
He said this emphasised the importance of the Government producing more UK-based renewable energy like wind and solar.
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The cap is significantly lower than at the peak of the energy crisis, which was fuelled by Russia’s invasion of Ukraine in February 2022.
The price cap peaked a £4,059 in 2023.
But prices are still “more volatile than it has been in quite some time, and households are bearing the brunt of cold weather and low gas storage levels across Europe,” Mr Lowrey said.
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It comes as the Government pushes ahead with its policy of building out renewable energy, with a goal of reaching 95% clean power across the electricity grid by 2030.
Mr Lowrey said: “It might be tempting to look at rising bills and conclude that the push towards renewables is not working, and we should scale back on the transition.
“But the reality is higher energy costs only reinforce the need to accelerate our expansion of clean, reliable energy across the UK."
The energy price cap was introduced in January 2019 to protect households from volatile energy prices.
Initially it changed twice a year to reflect changes in wholesale costs but is now every three months so that lower costs are reflected in customer bills more quickly.
What energy bill help is available?
There's a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don't think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don't need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you're struggling.
Get in touch with your energy firm to see if you can apply.
Richard Neudegg, director of regulation at Uswitch, said households bracing for the predicted rise to the price cap in April could avoid paying more by opting for a fixed deal.
He said: "Fixed deals protect you from price rises for 12 months or more by locking in rates.
"Switching to a fixed deal at or below the current January price cap level is a no-brainer if you want to avoid the predicted April price rise.
“If you’re not ready to fix, consider a deal such as a tracker which guarantees a saving on the price cap, whether it goes up or down.
“You can’t rely on the price cap to offer the best value. There are deals available right now that will save you money and that you can switch to in a matter of minutes."
It's worth bearing in mind though, lock in to a fixed deal and you could end up paying more overall if the price cap falls.
A fixed deal gives you certainty over what you can expect to pay though, making it easier to budget.
You can search for the best fixed energy deals via comparison websites like Uswitch and MoneySupermarket.
A Department for Energy Security and Net Zero spokesperson said: "Every family and business has paid the price of rising energy bills, which are a direct result of Britain’s vulnerability to volatile global gas markets.
"By failing to invest at scale over many years in the clean, secure, homegrown power our country needs, we have been left exposed to the consequences of events beyond our borders.
“The only way to bring down bills for good is by making Britain a clean energy superpower, which will ensure our energy security, protect consumers, create jobs and tackle the climate crisis.”
How to save money on energy bills
There are steps you can take now to drive down energy bills, even before any potential price rises in April.
Switching appliances off standby is one quick way to save around £45 a year, according to the Energy Saving Trust (EST).
Draught-proofing windows and doors is another - it could save you around £80 over 12 months.
Plus, ditching your tumble dryer and drying your clothes on a heated airer will likely save you £100s over the colder months.
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Try warming up yourself instead of blasting the heating on during the colder months too by opting for electric blankets and heated throws.
These gadgets cost just pennies to run per hour.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
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