AN online calculator can reveal exactly how much your bills will increase by this winter following today’s energy price cap rise.
Bills are set to increase for millions of households after energy regulator Ofgem increased the maximum price firms can charge consumers for energy.
Energy costs are set to increase for millions of households from today[/caption]
The energy price cap has risen from £1,568 a year to £1,717 from today, affecting millions of customers on standard variable tariffs.
The average household paying by direct debt for dual fuel can expect to see their annual bill go up by about £149 annually, or around £12 a month – a 10% increase.
But bear in mind the exact amount you pay could be higher or lower than this depending on your usage and the tariff you are on.
To help consumers find out exactly what they’ll be paying in energy costs this winter AI household money-saver Nous.co has created an online calculator.
As well as calculating your bills Nous.co can also help you find deals that might save you money as well as suggesting tips for reducing usage.
Nous.co co-founder and chief executive, Greg Marsh, said: “Lots of UK households will again be struggling with gas and electricity bills this winter, and some may even be forced to make the tough choice between heating and other essentials.
“It’s crucial to make sure you’re not overpaying for your bills. Fortunately – there are savings to be made if you’re smart about it.
“Simple things like adjusting your thermostat, monitoring your credit balance, taking regular meter readings and switching off unused appliances can help keep costs down.
“Most households can also save the better part of £150 on their energy bills, without committing to a fixed deal, plus hundreds more on their mobile and broadband by switching providers”
You can find Nous.co’s calculator here.
Ofgem estimates around 29million households on standard variable tariffs will be affected by the increased price cap.
The increases set out by the regulator apply to average-use households, but this can vary considerably.
That’s because those figures are calculated assuming that a typical household uses 2,900 kWh of electricity and 12,000 kWh of gas across a 12-month period.
If you use more than this the price will be higher as it is the unit cost that is capped not the overall amount billed.
So from today the price a supplier can charge for gas has risen from 5.48p per kWh, to 6.24p.
The price of electricity has also risen from 22.36p per kWh to 24.50p.
Meanwhile, standing charges, which cover things like maintaining the network and operational costs, have risen to 31.66p from 31.41p a day for gas and from 60.12p to 60.99p for electricity.
The way you pay for energy can also impact how much you pay and the £1,717 price cap applies specifically to those who pay by direct debit.
For those on prepayment meters the cap is £1,669 for an average household and it stands at £1,829 for those paying on receipt of bills.
If you’re on a fixed tariff there will be no change to your bill, as you’ve locked in the price for a set period.
If you haven’t already it’s important to take and submit a meter reading today to ensure you pay the lower rate for energy usage up until the point the price is increased.
If you don’t do this, you will be given an estimated bill which means some of your energy usage before October 1 could be charged at the new higher rate.
If you have a smart meter, you don’t need to take a reading as information is automatically sent to your supplier.
Despite the price cap rise, average bills remain considerably lower than during the peak of the energy crisis, which was fuelled by Russia’s invasion of Ukraine in February 2022.
The war caused a spike in an already turbulent wholesale energy market, driving up costs for suppliers and customers.
The new cap is £117 – 6% – cheaper compared to the same period last year when it stood at £1,834.
Before the energy price shock a standard annual bill was £1,084.
The energy price cap is adjusted every three months to reflect changes in underlying costs.
The price cap for January 1 to 31 March 2025, will be published on November 25.
If you’re worried about costs this winter MoneySavingExpert.com’s Martin Lewis has revealed how households can save money on their energy bills.
What energy bill help is available?
THERE’S a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have grant schemes available to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill, and some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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