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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? |
(about 16 hours later) | |
Gas and electricity prices have risen by 10% in England, Scotland and Wales. | |
It means the typical annual dual-fuel bill paid by direct debit is £1,717, which might prompt some customers to consider switching to a fixed tariff. | |
Billpayers are encouraged to submit a meter reading when prices change to ensure they are charged the correct amount. | |
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, external. | |
The rise to £1,717 per year for a dual-fuel direct debit household using a typical amount of energy is a £149 increase. | |
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. |
Should I take a meter reading? | Should I take a meter reading? |
Experts say it is a good idea to submit a meter reading when prices rise. | 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. | Doing so avoids being charged on estimated usage at the higher rate. |
Can I fix my energy tariff? | 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. | Fixed-priced deals offer certainty for a set period but, if prices drop, people could find themselves stuck at a higher price. |
Price comparison site Uswitch says the market for fixes is the best in recent years. | 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. | Some deals allow you to fix for a year, some for longer. |
The forecaster Cornwall Insight, which tracks the energy market, has suggested prices could fall slightly in January by 1%. It says the typical home could pay £1,697 a year. | |
Prices may fall again later next year, but a prediction that far ahead is highly uncertain. | |
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. | |
Uswitch warns customers to 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. | 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 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? |
Households on prepayment meters will now 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. | 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. | Standing charges are a fixed daily amount to cover the costs of connecting to a supply. |
They are typically 61p a day for electricity and 32p 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. | 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. | 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. | 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. | 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? |
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? |
Ofgem: Help with bills, external | Ofgem: Help with bills, external |