With the energy price cap rising by 80 per cent on October 1, everyone will owe money to their energy supplier, even if they choose not to turn on the heating. Mr Lewis explained how much households will pay when the new energy cap comes in this winter in his latest MoneySavingExpert newsletter. Anyone paying their bills by direct debit will face an 80 per cent rise from £1,971 to £3,549. Those with prepaid meters will see their bills rise from £2,017 to £3,608 a year. But Mr Lewis says even those who use no energy at all will have to pay £273 a year because of the daily fixed charge that households have to pay to keep their homes connected to the National Grid. Even those households that use no energy at all will have to pay some money to their energy supplier (PA Wire) He said: “The daily charges you pay for just one bill went up hugely in April and they’ve gone up more this time. “If you have both natural gas and electricity, the average price ceiling The fixed charge is £273 a year before you use anything.” Those with prepaid meters will have to pay an even higher fixed charge of £319.56 a year. Ofgem sets a maximum daily fixed charge in its price cap, which is the maximum amount energy suppliers can charge for a unit of gas and electricity. It varies slightly by region as it is more expensive to provide power to more remote areas. You can see the exact rate for your area using the Money Saving Expert table. Currently, the price cap is £1,971 a year for the average household paying for energy through a standing order. From 1 October this will rise to £3,549 for an average household. Following the announcement of the price cap increase, Mr Lewis shared some of the ways households can save money on their energy bills. These tips include:
Check if you are entitled to benefits. You can use a free online calculator such as Turn2Us and then apply via the Gov.uk website. Save money online – see if you can get, for example, a social tariff from an internet provider, such as TalkTalk’s free trial for jobseekers. Get a water meter. It records the amount of water used in your home, rather than your supplier charging you a flat rate. Reduce your credit card debt by moving it to a zero-interest balance transfer card.
