Energy bills are set to increase this winter, but there are strategies to reduce your costs and assistance available if you’re finding it tough. From October 1, the Ofgem energy price cap will rise to £1,717 a year for the average dual fuel household paying by direct debit, up from the current price cap of £1,568 a year.
The Ofgem price cap doesn’t limit the total amount you can pay for energy, but rather sets a cap on unit rates for gas and electricity, as well as standing charges, which are the fees you pay to be connected to the grid. Different rates apply for prepayment customers and those who pay upon receipt of their bill. At its peak, the Ofgem price cap rose above £4,000, but the Energy Price Guarantee was implemented and reduced it to £2,500.
If you’re struggling, your first step should be to reach out to your energy provider and inquire about the help they can provide. It’s usually best to do this before you miss a payment. Failing to pay your gas or electricity bill can lead to a damaged credit score, legal action, and visits from debt collectors. You may be offered tailored support such as a payment plan, payment breaks, and manageable debt repayments.
Prepayment customers can access emergency credit if they are at risk of running out of power. The emergency fund typically ranges between £5 and £10, but some providers offer up to £15. Emergency credit becomes accessible when there’s limited credit remaining on the meter and must be repaid upon the next top-up.
Check if your energy firm offers hardship funds or grants that you don’t need to pay back. For instance, the British Gas Energy Trust provides assistance worth up to £2,000. Other companies with active schemes include EDF, Octopus Energy, and Scottish Power.
You can get £150 off your electricity bill through the Warm Home Discount scheme. This scheme is currently closed but will reopen in October 2024. Check if you’re eligible based on the benefits you receive.
Interested in receiving the Cold Weather Payment? The scheme provides £25 per payment when temperatures drop to 0C or colder for seven days. Check if you qualify based on specific benefits and conditions.
Lastly, if you’re struggling to pay for your energy or are in energy debt, several charities such as the National Energy Action (NEA) can provide support and guidance. Taking advantage of these options can help ease the burden of rising energy costs this winter.