Energy bills set to rise: here’s what’s happening and how to get support

Energy bills in the UK are expected to rise over the coming years as part of a major investment in the country’s energy networks.

Ofgem, the energy regulator, has approved a five-year, £28bn plan to strengthen both the gas and electricity systems.

Why are bills going up?

The funding will be used to upgrade infrastructure and improve how energy is transported around the country. Key parts of the plan include:

• £17.8bn for gas networks – including maintenance and upgrades to the transmission system run by National Gas.
• £10.3bn for electricity networks – for replacing old equipment, building new transmission lines and improving the grid so it can handle more renewable energy.

These upgrades are partly aimed at fixing inefficiencies, such as the current situation where offshore wind farms are sometimes paid to switch off on very windy days because the grid can’t take the extra power.

How much extra will it cost households?

The investment is expected to add £108 to energy bills by 2031, £48 for gas and £60 for electricity.

However, Ofgem says that because the improvements will reduce reliance on expensive imported gas, households will save around £80 compared to what they would otherwise pay. This means a net increase of about £30 a year.

Energy bills remain high and Ofgem has separately confirmed a small rise of around £3 in January due to its price cap adjustment.

But there is some help on the horizon as the government has pledged to remove certain costs from bills, which should knock around £150 off the typical annual bill.

How to make sure you’re not overpaying

Submit a meter reading

If you don’t have a smart meter, your supplier estimates your usage. Providing regular meter readings ensures you only pay for the energy you’ve actually used.

Financial support you could get

Speak to your supplier

If you’re struggling to keep up with your bills, contact your supplier. 

They might be able to offer:

• grants
• payment plans
• advice on managing your account

It could also be worth joining the Priority Services Register for extra support.

Apply for the household support fund 

You may be able to get extra help with energy costs and food through your local council via the household support fund (HSF).

See if you can get a fuel voucher

If you’re using a prepayment meter and struggling to top up, you may be able to get a fuel voucher. 

Contact:

• your local council
• a food bank
• Citizens Advice

Find out what other benefits you could claim

You might already be eligible for support such as the warm home discount or winter fuel payments.

Try our free benefits calculator to find out if you’re getting all the support you’re entitled to receive. 

Try to save energy

Small steps such as turning down your thermostat by one degree, not overfilling the kettle and bleeding your radiators could help you cut your energy usage - and in turn, bring your bills down.

We’ve put together a list of 50 smart energy-saving tips to help you get started.