Keeping your energy bills in check
Just as we enter the colder months, our electricity and gas bills will rise by around 10%, as the Ofgem Energy Price Cap goes up on 1 October 2024.
Update – this will go up a further 1.2% 01 January 2025.
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Experts say that prices have gone up again due to extreme weather conditions and the ongoing international political tensions.
So, with the Winter Fuel Payment disappearing for millions of people and the cost of living crisis continuing, what can you do to try and reduce the bills?
Get your meter reading in
Remember to submit a meter reading on 31st December 2024 to ensure you aren’t charged at the higher rate for any energy you use up until that date.
Unit costs from 1 October 2024
- Electricity will be capped at 24.50p per kWh, with a maximum daily standing charge of 60.99p.
- Gas will be capped at 6.24p per kWh, with a maximum daily standing charge of 31.66p.
( Source: https://www.ofgem.gov.uk/energy-price-cap )
Unit costs from 01 January 2024
- Electricity will be capped at 24.86p per kWh, with a maximum daily standing charge of 60.97p.
- Gas will be capped at 6.34p per kWh, with a maximum daily standing charge of 31.65p.
( Source: https://www.ofgem.gov.uk/energy-price-cap )
Fixed tariffs
Some energy providers are offering a fixed tariff that is cheaper than the Price Cap. Some are offering fixed tariffs to existing customers. So you need to do your research quickly
Be careful, though, as not all fixed tariffs are cheaper. For example, E.ON’s fixed tariff was more expensive than the Price Cap pre 01 October 2024.
The Winter Fuel Payment
The planned abolition of the Winter Fuel Payment (WFP) is expected to impact around 10 million pensioners in England and Wales, significantly reducing the number of recipients from approximately 11.4 million to just 1.5 million. Those still able to still access the allowance are those over state pension age who claim certain benefits, including:
- Pension Credit
- Universal Credit
- Income-related Employment and Support Allowance (ESA)
- Income-based Jobseeker’s Allowance (JSA)
- Income Support
- Child Tax Credit
- Working Tax Credit
It is estimated that around 880,000 low-income pensioner households are entitled to claim Pension Credit but are not currently doing so. Check the Government pension calculator to see if you are eligible. There is an estimated backlog of 60,000 claims. If successful, the payment will be backdated up to 3 months.
Next Energy Price Cap review
The next Energy Price Cap, which will apply from 1 January to 31 March 2025, will be announced around 25 November 2024.
Seek help if you think you will fall into debt
If you’re having difficulty paying your energy bills, it is important to keep communicating with your supplier. There may be access to hardship funds and grants from various organisations, including from your energy supplier. You may also be able to get 60 days’ space from creditors to focus on getting debt advice and setting up a debt solution.
You can also get debt advice from Citizens Advice, StepChange and National Debtline.
Visit the website of Turn2Us, who provide information and advice on what assistance is available, including charities that will help you pay your bills.
