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| What is the energy price cap and how much are gas and electricity bills going up? | What is the energy price cap and how much are gas and electricity bills going up? |
| (1 day later) | |
| Gas and electricity prices will rise by 10% in England, Scotland and Wales on Tuesday, 1 October. | Gas and electricity prices will rise by 10% in England, Scotland and Wales on Tuesday, 1 October. |
| It means the typical annual dual-fuel bill paid by direct debit will be £1,717, which might prompt some customers to consider switching to a fixed tariff. | |
| Despite the increase, about 10 million pensioners will no longer get winter fuel payments and last winter's cost-of-living support has ended. | |
| What is the energy price cap and how is it changing? | What is the energy price cap and how is it changing? |
| The energy price cap covers 28 million households in England, Wales and Scotland and is set every three months, external by the energy regulator Ofgem. | The energy price cap covers 28 million households in England, Wales and Scotland and is set every three months, external by the energy regulator Ofgem. |
| 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. | 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. |
| Between 1 October and 31 December, gas prices will be capped at 6.24p per kilowatt hour (kWh), and electricity at 24.50p per kWh. | Between 1 October and 31 December, gas prices will be capped at 6.24p per kilowatt hour (kWh), and electricity at 24.50p per kWh. |
| The rise to £1,717 per year for a dual-fuel direct debit household using a typical amount of energy, external is a £149 increase. | |
| Experts say it is a good idea to submit a meter reading when prices rise. Doing so avoids being charged on estimated usage at the higher rate. | |
| Those who pay their bills every three months by cash or cheque will pay £1,829. | Those who pay their bills every three months by cash or cheque will pay £1,829. |
| The cap does not apply in Northern Ireland, which has its own energy market. | The cap does not apply in Northern Ireland, which has its own energy market. |
| Can I fix my energy tariff? | |
| Fixed-priced deals offer certainty for a set period but, if prices drop, people could find themselves stuck at a higher price. | |
| The forecaster Cornwall Insight, which tracks the energy market, has suggested prices could increase again slightly in January, due to rising wholesale costs paid by suppliers. | |
| It says the typical home could pay £1,762 a year. | |
| Given prices are rising, Ofgem says people should consider fixed deals as an option. | |
| However, it says they should seek independent advice and consider what is most important for them - the lowest price or the security of a fixed deal. | |
| Price comparison site Uswitch says the market for fixes is the best in recent years. | |
| Some deals allow you to fix for a year, some for longer. | |
| Uswitch warns customers should check whether fixed deals have exit fees before signing up and ensure they fully understand the terms of the contract. | |
| Because the price cap changes every three months, it is difficult to know with any certainty whether a fixed tariff is a good deal. The longer the fixed term, the greater the uncertainty. | |
| What is a typical household? | What is a typical household? |
| Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it. | Your energy bill depends on the overall amount of gas and electricity you use, and how you pay for it. |
| The type of property you live in, how energy efficient it is, and how many people live there, all make a difference. | |
| The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, which they settle by direct debit. | The Ofgem cap is based on a "typical household" using 11,500 kWh of gas and 2,700 kWh of electricity a year with a single bill for gas and electricity, which they settle by direct debit. |
| The vast majority of people pay their bill this way to help spread payments across the year. | The vast majority of people pay their bill this way to help spread payments across the year. |
| Those who pay every three months by cash and cheque are charged more. | Those who pay every three months by cash and cheque are charged more. |
| Energy prices could vary at different times of day | |
| Energy prices could vary at different times of day | |
| What is happening to prepayment customers? | What is happening to prepayment customers? |
| From 1 October, households on prepayment meters will pay slightly less than those on direct debit, with a typical bill of £1,669, a rise of £147. | From 1 October, households on prepayment meters will pay slightly less than those on direct debit, with a typical bill of £1,669, a rise of £147. |
| About four million households had prepayment meters in April 2024, according to Ofgem. | About four million households had prepayment meters in April 2024, according to Ofgem. |
| Many have been in place for years, but some were installed more recently after customers struggled to pay higher bills. | Many have been in place for years, but some were installed more recently after customers struggled to pay higher bills. |
| New rules mean suppliers must give customers more opportunity to clear their debts before switching them to a meter. They cannot be installed at all in certain households. | |
| What are standing charges and how are they changing? | What are standing charges and how are they changing? |
| Standing charges are a fixed daily amount to cover the costs of connecting to a supply. | |
| They are typically 60p a day for electricity and 31p a day for gas, although they vary by region. | |
| Campaigners argue the charges are unfair because they make up a larger part of the bill of low energy users. | |
| Ofgem has outlined options to change standing charges and asked energy suppliers, consumer groups and household bill payers to give their views., external This consultation closed on 20 September. | |
| Separately, the regulator is adding £28 to everyone's bill between April 2024 and March 2025 to cover the cost of dealing with £3.1bn of debt that customers owe to suppliers. | |
| What is happening to the winter fuel payment? | What is happening to the winter fuel payment? |
| Changes to the winter fuel payment mean more than 10 million pensioners will not receive the money this winter. | Changes to the winter fuel payment mean more than 10 million pensioners will not receive the money this winter. |
| Previously, it was paid to all pensioners to help with their energy bills during the coldest part of the year. | Previously, it was paid to all pensioners to help with their energy bills during the coldest part of the year. |
| But in July, the government said future payments would be made only to those on low incomes who received certain benefits, including pension credit. | But in July, the government said future payments would be made only to those on low incomes who received certain benefits, including pension credit. |
| This year's payment - worth £200 or £300 depending on individual circumstances - will be paid automatically to eligible pensioners in November or December. | This year's payment - worth £200 or £300 depending on individual circumstances - will be paid automatically to eligible pensioners in November or December. |
| So far 75,000 more people, who previously did not receive pension credit, have made claims for the benefit since the fuel payment policy was announced. | |
| How much is the winter fuel payment and who can still get it? | How much is the winter fuel payment and who can still get it? |
| How much is the winter fuel payment and who can still get it? | How much is the winter fuel payment and who can still get it? |
| What other help can I get with energy bills? | What other help can I get with energy bills? |
| The £500m Household Support Fund,, external which was introduced in September 2021 to help vulnerable customers, had been due to end in autumn 2024. | The £500m Household Support Fund,, external which was introduced in September 2021 to help vulnerable customers, had been due to end in autumn 2024. |
| However, Work and Pensions Secretary Liz Kendall has extended this until March 2025. | However, Work and Pensions Secretary Liz Kendall has extended this until March 2025. |
| The Warm Home Discount scheme, external continues to offer a discount to eligible pensioners and low income households. | The Warm Home Discount scheme, external continues to offer a discount to eligible pensioners and low income households. |
| The government's Fuel Direct Scheme, external can help people to repay an energy debt directly from their benefit payments. | The government's Fuel Direct Scheme, external can help people to repay an energy debt directly from their benefit payments. |
| In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills. | In addition, suppliers must offer customers affordable payment plans or repayment holidays if they are struggling with bills. |
| Most suppliers also offer hardship grants. | Most suppliers also offer hardship grants. |
| What can I do if I can't pay my energy bill? | What can I do if I can't pay my energy bill? |
| What can I do if I can't pay my energy bill? | What can I do if I can't pay my energy bill? |
| Ofgem: Help with bills, external | Ofgem: Help with bills, external |
| Ofgem: Help with bills, external | Ofgem: Help with bills, external |
| Related topics | Related topics |
| Energy customer switching | Energy customer switching |
| Ofgem | Ofgem |
| Personal finance | Personal finance |
| Energy industry | Energy industry |
| Cost of Living | Cost of Living |
| The world explained | The world explained |
| Oil & Gas industry | Oil & Gas industry |
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