The energy price cap covers 26 million households in England, Wales and Scotland
The energy price cap covers 26 million households in England, Wales and Scotland
The energy bills of millions of households are to rise by 6.4% from April 1 when Ofgem increases its price cap for a third consecutive quarter. The regulator said the increase will raise the average bill of those on a variable tariff from the current £1,738 to £1,849 each year.
The energy price cap covers 26 million households in England, Wales and Scotland and is set every three months. It fixes the maximum price that can be charged for each unit of energy on a standard or default tariff for a typical dual-fuel household which pays by direct debit
The rise will equate to £111 for an average household per year, or around £9.25 a month, over the three-month period of the price cap. This is 9.4% or £159 higher than this time last year but £531 or 22% lower than at the height of the energy crisis at the start of 2023.
Energy Saving Trust has detailed some “quick” tips to save money on energy bills ahead of the price increase. Whether you’re a homeowner, a private or social renter, a student, or you live with your parents, there are many things you can do.
10 ways to save money on energy bills:
The energy company has also estimated how much you could save annually on each method. Savings for Great Britain are based on an electricity price of 24.5 p/kWh and a gas price of 6.29 p/kWh, calculated from a weighted average of projected, current and recent energy price caps.
- Switch off standby – £45
- Install draught proofing – £80
- Turn off the lights – £7
- Fewer, colder laundry cycles – £24
- Avoid using the tumble dryer – £50
- Take a 4-minute shower – £60
- Swap one bath a week for a shower – £9
- Don’t overfill the kettle, use a tap aerator £29
- Less dishwasher use – £12
- Top up your hot water insulation – £40
When the energy bill changes were announced in February, Martin Lewis also shared advice for energy consumers across the UK. He explained: “If you are on a fixed tariff or thinking of getting one they (energy companies) cannot charge you early exit fees.
“If you leave a fix within the last 50 days. So from day 49 onwards there are no early exit penalties, you are absolutely free to leave if you choose to”
The money saving expert says it is a very good idea to work out when your fix ends and put 50 days beforehand in your diary to do a comparison to then find anything cheaper.
Offering further advice, he says “you’re free to switch and they can’t lock you in with penalties” and if you can’t you should stay where you are and “milk it out” until the last moment.
Martin has always been an advocate for consumers locking onto a price fix. He says you can typically save 7% straight away and protect yourself from future hikes for 16 months. The newest hike comes after fuel prices increased in October and January.