Energy bills are rising again – here’s what you can do before prices go up

Millions of households are set to see their energy bills rise again this week, just as the cooler weather arrives.

From Thursday 1 October, the energy price cap will increase by 4%, adding around £60 a year to the average household bill for customers paying by direct debit in England, Scotland and Wales.

So, what can you do to keep your energy costs under control?

What’s the energy price cap?

The energy price cap sets a limit on how much your supplier can charge you for each unit of gas and electricity. It’s set by the energy regulator, Ofgem.

The rise will affect you if you’re on a standard variable tariff, where the price you pay can change in line with the price cap.

Ofgem reviews and changes the cap every three months, largely based on changes in the wholesale cost of energy.

With the latest increase about to take effect, here are some simple checks you can make now to help you avoid paying more than you need to.

Send in your meter reading

If you don’t have a smart meter, make sure you send your latest meter reading to your supplier before the end of September.

Comparison site Uswitch is urging customers to do this to make sure they’re charged the correct rate for the energy you’ve used.

If you’re on a standard variable tariff and don’t have a smart meter, failing to send a reading could mean some of your September energy use is estimated and charged at the higher rate.

Check how you’re paying

If you’re not already paying by monthly direct debit, it’s worth checking whether switching could save you money.

Paying by monthly direct debit can save you more than £100 a year compared with paying when you receive your bill, although the amount you can save depends on your supplier and tariff.

With a monthly direct debit, your supplier estimates how much energy you’re likely to use over the year and spreads the cost across 12 monthly payments.

This can give you access to cheaper rates and helps you avoid unexpectedly large bills during the winter, when you’re likely to use more energy.

You’ll often build up credit during the summer, which can then help cover your higher winter usage. Depending on your supplier and circumstances, you may also be able to ask for credit to be refunded.

You can check how you’re currently paying by logging into your energy account or contacting your supplier.

Check whether a fixed deal could work for you

With prices changing, it’s also worth checking whether a fixed-rate tariff could suit you before the new price cap takes effect.

A fixed deal locks in the unit rates you pay for a set period, such as 12 or 24 months. This could give you more certainty over your energy costs if prices rise again.

But, fixed deals can come with exit fees, and the cheapest option for you will depend on your circumstances and how much energy you use.

Use a reputable comparison service to compare the deals available to you and check the full terms before switching.

What can you do if you’re struggling with your energy bills?

If you’re finding it hard to keep up with your energy bills, then help is available.

You might be able to:

• get emergency credit if you’re on a prepayment meter
• apply for a grant or hardship fund from your supplier
• join the Priority Services Register for extra support

You can also get in touch with us for help with managing your money or sorting out debt.

We can check you’re getting all the benefits you’re entitled to and help you create a realistic budget.

And if you owe money and are struggling with repayments, we’re here to give you debt advice. 

We’ve also put together a list of 50 smart energy-saving tips to help you save on energy and reduce your bills.