The Energy Price Guarantee will soon change, affecting many households' finances across the country.
The guarantee was introduced as a temporary measure to protect energy bill-payers from significant increases in wholesale energy prices. It limits the amount that suppliers can charge per unit of gas and electricity.
Initially, the cap was set at £2,500 for an average yearly bill. However, this will be pushed up by £500 from April this year, introducing a new price cap of £3,000. And while it's substantially better than the amount households would pay without backing from the government, it still means that energy bills will become more expensive.
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This will be a significant blow for households already struggling to pay their bills and may already be in arrears. Despite this, there is a variety of help and support to aid households to settle their energy debt.
Citizens Advice notes: "You can get help if you’re struggling to afford your energy bills or top up your prepayment meter. You might be able to take advantage of certain benefits, grants and help offered by the government and energy suppliers."
If you are in debt with your energy supplier, the first thing you should is contact them to go through your options. There's a chance you may be able to set up a payment plan within your means.
However, if you feel that isn't possible you can always look at getting a grant to help pay it off.
Grants to help with energy debts
Various suppliers have their own grants and support funds to help their customers. It's important to note that if your supplier is not listed below, you may still be able to get a grant from the British Gas Energy Trust which can provide financial support regardless of whether you're a British Gas customer or not - however, you will need to get debt advice from a debt adviser before applying.
Here's a breakdown of all the suppliers offering grants to their customers:
- British Gas Energy Support Fund
- Scottish Power Hardship Fund
- OVO Customer Support Package
- E.ON Energy Fund
- EDF Energy Customer Support Fund
- Octopus 'Octo Assist Fund'
- Shell Energy Support Fund
How to apply for a grant
In order to apply for a grant, be prepared to provide detailed information about your personal financial situation in your application. Some suppliers may ask for additional information or requirements before applying such as getting advice from an official debt adviser.
If this is the case, you will need to find an adviser using the locator on the Money Helper website. You should also check if the adviser or their firm is on the FCA register.
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