Households across the country will see a major change to their energy bills this weekend.
From Saturday, July 1, households will pay less for gas and electricity. The average household energy bill will fall by £426 a year following Ofgem's new price cap of £2,074 coming into place.
The energy regulator is cutting its price cap from £3,280 per year, providing some relief to customers who have seen energy bills soar from £1,271 a year in October 2021 due to a global pricing crisis. However, households have somewhat been protected by worsening prices due to the government's Energy Price Guarantee which capped them at £2,500 - this will no longer be in place as Ofgem's price cap will fall below the EPG.
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A spokeswoman for Energy UK, which represents suppliers, said: “The fall in the price cap from July will be welcome news for customers who have had to face record energy bills over the last year amidst a steep rise in the cost of living and for whom the Government’s bill support has been crucial in preventing even bigger difficulties. However, bills remain much higher than they were 18 months ago and many customers will continue to struggle, especially following the removal of some of that support.
“If – as the current projections indicate – annual bills of £2,000 plus become the new normal, it underlines the importance and urgency of the energy industry, Ofgem, Government and consumer groups working together to put in place targeted support for those most in need next winter.”
To help prepare you for the changing prices, we've broken down three key things billpayers should do before tomorrow.
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1. Take a meter reading
Taking a meter reading before tomorrow can help ensure you don't get charged more for your electricity than you should do. Billpayers who pay via direct debit should do a meter reading on the final day current energy rates are in place - today (June 30).
This is because energy firms estimate a direct debit customer's energy usage across a certain period. By providing an up-to-date meter reading before the new rate comes in you can avoid a firm overestimating and charging you too much.
A meter reading also provides an extra layer of support if you ever need to dispute a bill or if you feel you've been inaccurately or unfairly charged.
2. Check your appliances
Many household appliances can be a major drain on your electricity and may add an unnecessary amount onto your energy bill. To ensure that you save more money from tomorrow, it may be a good idea to walk around your home and check there are no appliances stealing energy when not in use.
Examples can include ovens, central heating, space heaters, air conditioning and boilers which should only be used when absolutely necessary. You can also check if there are any electronics such as TVs or game consoles which take up electricity when on standby mode.
3. Check what help is available to you
While the government's winter support scheme for energy bills will be coming to an end this year, potentially resulting in disproportionate bill costs when compared to last year, there is still some extra financial help available. One of the key support schemes from the government is the Cost of Living Payments being paid out throughout 2023/24.
According to the DWP, the five cost of living payments will cover vulnerable households, pensioners, and those living with physical and mental disabilities. Here's a breakdown of all the five payments and when they can be expected:
- £301 – First 2023/24 Cost of Living Payment – Already paid in the early summer for most claimants
- £150 – 2023 Disability Payment – Final payments issued by July 4, 2023
- £300 – Second 2023/24 Cost of Living Payment – during Autumn 2023
- £300 – 2023 Pensioner Payment – during Winter 2023/4
- £299 – Third 2023/24 Cost of Living Payment – during Spring 2024
Some households will have already received some extra cash from the scheme. If you haven't, you may find yourself eligible for future payments if you receive a qualifying benefit such as Universal Credit.
