As you will no doubt be aware of the energy price cap will increase from 1 April for approximately 22 million customers. It has been confirmed that those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year. Prepayment customers will see an increase of £708 from £1,309 to £2,017.
The increase is driven by a record rise in global gas prices over the last 6 months, with wholesale prices quadrupling in the last year.
It will affect default tariff customers who haven’t switched to a fixed deal and those who remain with their new supplier after their previous supplier exited the market.
The price cap is updated twice a year and tracks wholesale energy and other costs.
This rise in energy cost will also affect the general cost of living as we see the price of food rise. In addition to this we are seeing record high diesel and petrol prices.
There are ways to save money and a host of articles available with top tips to save on energy costs including turning your thermostat down by 1 degree, changing to LED lamps in your light fittings and washing clothes at a lower temperature in your washing machine. These combined savings can amount to over £100 annually.
As Ofgem, the energy regulator states…. ‘If customers are struggling to pay for energy bills, they should contact their energy supplier as soon as possible. Depending on their circumstances, customers may be eligible for extra help with their energy bills or services, such as debt repayment plans, payment breaks, emergency credit for prepayment metered customers, priority support and schemes like the Winter Fuel Payment or Warm Home Discount rebate.’
For further help with dealing with the coat of energy visit the Ofgem website here.
We are always here to help regardless of your financial situation so please pick up the phone and call us on 01752 837950 or send us an e mail.
