Energy Bills: Millions of Households Must ACT NOW to Beat October Price Rise

Millions of households could face a steep energy bill rise if they don’t act before 1 October, but how can you avoid the increase?

From 1 October, energy bills will rise 4% to £1,723, the highest level seen in the UK in three years.

For households using a typical amount of gas and electricity, paying via Direct Debit, energy bills will rise £60 per year.

This is because the energy price cap, which is set by the UK’s energy regulator Ofgem, is rising from £1,663 to £1,723 per year.

It follows a hefty £221 increase in average energy bills when the price cap rose 13% from July this year.

The energy price cap sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use.

It’s important to note that the price cap doesn’t limit the size of your actual energy bill. You bill depends by the amount of energy you actually use.

Ofgem sets the cap every three months and it applies to millions of households in England, Scotland and Wales.

Why are energy bills rising?

In the UK, energy bills are rising sharply due to higher wholesale gas prices triggered by ongoing conflict in the Middle East.

The upcoming increase in energy comes despite the government’s decision to remove VAT from all domestic electricity bills.

Why you need to act now to save on energy

The price cap change will affect around 20 million customers in the UK on a standard variable tariff. Those on a fixed rate tariff, won’t be affected as the cost per unit of energy used is locked in until the tariff ends.

If you’re on a standard variable tariff or your fixed rate deal is ending soon these steps can help you beat the price cap rise before 1 October:

Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end soon (even if it’s just after 1 October), switching onto a fixed-rate tariff can help you cut the cost of your energy.

• Pay by Direct Debit: Paying by Direct Debit is usually cheaper because you don’t have to pay admin costs. Currently, 3 million customers pay by standard credit but could save over £100 per year by switching to a Direct Debit payment.
• Shop around: price comparison can help you compare lots of energy deals quickly and find the best value. Remember to watch out for exit fees which could make your tariff more expensive if you want to switch again before the deal ends.
• Apply for support: check if you’re eligible for support from the government such as the Warm Home Discount or your energy supplier, to help you afford the cost of heating and powering your home.

Worried you can’t pay your energy bills?

It’s vital to act quickly if you don’t think you’ll be able to afford your energy bill.

Contact your energy supplier as soon as possible to arrange a payment plan which you can reasonably afford. Customers on a prepayment meter can request emergency credit if they’re unable to top up.

If you’re already struggling with your bills and have fallen into debt, contacting organisations such as StepChange or Citizens Advice can help you access free advice to help you get your payments back on track.