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| Version 44 | Version 45 |
|---|---|
| What is the energy price cap and how high will bills go? | What is the energy price cap and how high will bills go? |
| (1 day later) | |
| Energy bills are set to rise sharply in October, when a new price cap takes effect. | |
| With calls for more help with costs growing, plans to reduce bills for households using less energy at peak times are expected soon. | |
| How high might bills go? | |
| A new price cap will be announced by Ofgem, the energy regulator, on Friday. | |
| It will determine how much 24 million households pay for their energy when it comes info force on 1 October. | |
| The typical bill for direct debit customers could rise to £3,554 a year, according to analysts Cornwall Insight. | |
| It says further increases could take bills to an average of £4,650 a year from January, when the cap is next updated. | |
| However, Ofgem says predictions of future price cap levels should be treated with "extreme caution". | |
| What is the energy price cap? | What is the energy price cap? |
| The price cap is the maximum amount companies can charge households for each unit of energy they use (the kilowatt hour or kWh on your bills). | |
| It also limits what firms can charge customers for being connected to the grid, known as the standing charge. | |
| Ofgem sets it according to how much energy companies have to pay for the electricity and gas they supply to households. | |
| It calculates the annual bill for a household using a typical amount of energy. Before Friday's announcement that was £1,971 a year, or £2,017 for the 4.5 million households with a pre-payment meter, which are covered by a separate cap. | |
| However, the amount individuals actually pay could be higher or lower, depending on how much energy they use. | |
| Ofgem now sets the energy price cap every three months and it applies in England, Scotland and Wales. | |
| Energy prices in Northern Ireland are controlled separately, but have also increased sharply. | Energy prices in Northern Ireland are controlled separately, but have also increased sharply. |
| Ofgem: Check if the energy price cap affects you | |
| How can I save money on my energy bills? | |
| Plans to offer discounts to households which use less electricity at peak times, are expected in early September from National Grid, which runs the UK's electricity system. | |
| Customers who don't use energy-hungry appliances between 17:00 and 20:00 BST would get money back for the energy they save during this time. | |
| However, it's thought only households with smart meters will qualify and it can take a few weeks to get one installed. | |
| The Energy Saving Trust says making several small changes to energy habits can also help reduce bills, such as limiting your shower time and air drying your clothes. | The Energy Saving Trust says making several small changes to energy habits can also help reduce bills, such as limiting your shower time and air drying your clothes. |
| According to the Centre for Sustainable Energy, tumble dryers use between 2 and 3 kWh per hour they're on, while ovens use about 2 kWh and dishwashers between 1 and 1.5 kWh. | |
| Boosting your home's insulation can also cut bills. | |
| Why are energy prices so high? | |
| Energy prices rose sharply when lockdown lifted and the economy began to return to normal. | |
| They have also increased because the war in Ukraine has sharply reduced supplies of Russian gas. | |
| This has pushed up the price of gas across the continent, including in the UK. | This has pushed up the price of gas across the continent, including in the UK. |
| Gas and electricity producers raised their prices so rapidly in 2021 that many energy suppliers collapsed. | Gas and electricity producers raised their prices so rapidly in 2021 that many energy suppliers collapsed. |
| Ofgem has been increasing the price cap to try and ensure the remainder stay in business. | Ofgem has been increasing the price cap to try and ensure the remainder stay in business. |
| What's the effect on customers? | What's the effect on customers? |
| Further energy price rises are expected to put many people into fuel poverty, meaning they can't afford to heat (or cool) their homes to an adequate temperature. | |
| Energy company E.on UK suggests one in eight households are currently struggling to pay their bills. It says that could rise to 40% by October. | |
| The NHS has warned that growing numbers of people will see their health worsen, unless the government takes further action to limit price increases. | |
| The NHS Confederation said many people will have to choose between skipping meals or heating their homes. | |
| What help will I get to pay my energy bills? | What help will I get to pay my energy bills? |
| All UK households will be given a one-off £400 discount on their fuel bills from October. | |
| In addition, £650 will be paid to more than eight million low-income households who receive benefits or tax credits. | In addition, £650 will be paid to more than eight million low-income households who receive benefits or tax credits. |
| There are further payments of £300 to pensioner households and £150 to disabled people. | |
| Fifty disability charities have called on Tory leadership rivals Liz Truss and Rishi Sunak to promise more support | |
| Vulnerable families can also claim help through the Household Support Fund, the Warm Home Discount scheme, and hardship funds run by energy companies. | Vulnerable families can also claim help through the Household Support Fund, the Warm Home Discount scheme, and hardship funds run by energy companies. |
| How do I get the £400 energy grant and £650 cost-of-living payment? | How do I get the £400 energy grant and £650 cost-of-living payment? |
| Ofgem: Getting help if you can't afford your energy bills | Ofgem: Getting help if you can't afford your energy bills |
| What happens if I don't pay my energy bills? | What happens if I don't pay my energy bills? |
| Your supplier must give you a chance to clear your debt through an agreed payment plan. | Your supplier must give you a chance to clear your debt through an agreed payment plan. |
| If you don't agree, you may be forced to move to a pre-payment meter. | If you don't agree, you may be forced to move to a pre-payment meter. |
| In extreme cases, you might be threatened with disconnection. | In extreme cases, you might be threatened with disconnection. |
| What can I do if I can't afford my energy bill? | What can I do if I can't afford my energy bill? |
| How are you preparing for the rise in energy bills and cost of living? You can get in touch by emailing: haveyoursay@bbc.co.uk. | How are you preparing for the rise in energy bills and cost of living? You can get in touch by emailing: haveyoursay@bbc.co.uk. |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways: |
| WhatsApp: +44 7756 165803 | WhatsApp: +44 7756 165803 |
| Tweet: @BBC_HaveYourSay | Tweet: @BBC_HaveYourSay |
| Or fill out the form below | Or fill out the form below |
| Please read our terms & conditions and privacy policy | Please read our terms & conditions and privacy policy |
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