Energy bills set to rise - how can you keep costs down?

Millions of households will see their gas and electricity bills go up this summer - a consequence of the ongoing Iran war.

The US-Israel conflict with Iran has sent oil and gas prices soaring, which is - in turn - pushing up what we pay for energy at home.

And energy regulator Ofgem has now confirmed that its latest price cap will go up by 13% in July.

What is the energy price cap?

The energy price cap limits how much suppliers can charge per unit of gas and electricity. 

But it doesn’t cap your total bill - the amount you pay depends on how much energy you use.

The price cap applies to households on standard variable tariffs, which are the default tariffs for customers who haven’t switched to a fixed-rate deal. 

What will the increase cost you?

A household using a typical amount of gas and electricity will pay an average of £1,862 a year.

That’s an annual increase of £221, or about £18 a month.

“Today’s price change reflects continued volatility in global energy markets,” said Tim Jarvis of Ofgem.

“This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy.”

Should I fix my energy or not?

If you’re on a variable tariff, you might now be asking if now’s a good time to fix your energy deal.

There are pros and cons whatever you decide.

If stability and certainty are important to you, and you’ve found a fixed deal close to or lower than the current cap, it might be worth locking in now.

But if you’re willing to take the risk that prices could rise or fall, and prefer the flexibility of switching later, then staying on a variable tariff might be a better option.

Will the government step in to help struggling households?

“We know people were under pressure before this crisis,” said energy secretary Ed Miliband.

“That's why easing that burden is our number one priority."

But while the government hasn’t ruled out stepping in to help households struggling with their energy bills, details on what a support scheme would look like haven’t yet been put forward.

Ministers have, however, already hinted that if one is introduced, it’ll be based on people’s household income, rather than available to everyone.

We’ll be keeping a close eye on this and here to let you know the details as soon as anything is announced.

What can I do if I’m worried about my energy bills?

If you’re struggling with your energy bills and worried about further increases, there are steps you can take straight away.

Speak to your energy supplier

Let your supplier know if you’re starting to fall behind with your payments and worried about how to pay your next bill.

They might be able to offer:

• grants
• payment plans
• advice on managing your account

It could also be worth joining the Priority Services Register - a free service that provides extra support to people who need help with their energy supply. 

See what benefits you can claim 

Use our benefits calculator to find out what financial support you could be entitled to.

Or you can give us a call and we’ll look into what you could claim.

It might be more than you think.

Get help with your debts

If you’re feeling burdened by debt, contact us for confidential, practical and impartial debt advice.

Try to save energy at home

Small steps like only using your washing machine when you’ve got a full load, turning lights off in empty rooms and taking shorter showers can make a big difference to your bills.

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

Create a household budget

Energy is just one essential cost that comes with running a household.

So make sure you know exactly how much money you’ve got coming in each month and where it’s going, so you can prioritise your spending and identify possible savings.

Check our guide to creating a budget to find out more.