Energy prices are set to increase again in October, with an estimated rise of approximately £35 annually for a typical household. This increase affects the cap on standard variable bills, which includes both a daily standing charge and the cost per unit of energy. Households that consume significant amounts of energy may see their bills rise even further.
To manage the impact of rising energy bills, consider the following strategies:
-
Switch to a Fixed Rate: The energy regulator Ofgem suggests that consumers evaluate fixed-rate deals, which offer consistent pricing for energy units, potentially leading to savings. Currently, fixed-rate options may be around 15% cheaper than variable rates and could save households an estimated £250 over the year. However, consumers are advised to review various deals beyond their current supplier. Be cautious of exit fees associated with fixed deals, as they can be significant if market prices fall.
-
Pay by Direct Debit: Many consumers still receive their bills monthly rather than opting for direct debit, which could complicate their budgeting. Those with smart meters or regular meter readings generally avoid overcharges. Additionally, consumers on fixed-rate deals often need to switch to direct debit to benefit from lower rates.
-
Explore Financial Support: Individuals on low incomes may qualify for multiple forms of financial assistance. For this winter, those on means-tested benefits will receive a £150 discount on their electricity bill. Various energy suppliers also provide hardship grants and support for energy debt repayment. Furthermore, there are schemes available that assist with home insulation, potentially reducing future energy costs.
-
Review Energy Usage: Maintaining warmth is crucial during colder months, particularly for vulnerable populations. Households can implement energy-saving practices, such as using thick curtains, blocking drafts, and minimizing energy use in unoccupied rooms. Adjusting boiler settings and employing energy-efficient cooking methods can also contribute to lowering bills. Considerations for home improvements, such as insulation, can further enhance long-term energy efficiency.
Implementing these strategies may help manage the financial burden associated with rising energy costs.
Source: https://www.bbc.com/news/articles/crm4rygl4m3o?at_medium=RSS&at_campaign=rss