When is the energy price cap increase?
From 1st October 2021 the energy price cap set by Ofgem will increase. The increase of the cap is due to an increase in gas and electricity wholesale prices. This means 15 million households across the UK will see an increase of their energy bills by approximately £140 per year.
How will the energy price cap affect me ?
According to Ofgem 11 million households who pay by direct debit, there will see an average increase of £139 per year from October. Where as for the 4 million households on prepayment meters, there will be an average price rise of £153.
With winter around the corner, the thought of increased cost to keep warm can be quiet scary. Thankfully there are many ways to cut the cost of our bills. You may also be entitled to some help towards the cost of keeping warm this winter.
How to avoid the October price hike
Since gas & electric prices will increase from 1st October, many energy suppliers have increased their standard tariffs by roughly 12% already. However not all energy companies have increased their prices yet. Therefore I strongly advice you to shop around to get a good tariff and fix your energy prices before the 1st October.
To compare prices and switch suppliers, I recommend the Ofgem approved comparison site Energyhelpline.
I’ve checked my own energy tariff and it’s ending on 22nd October. I’ll be renewing my tariff tomorrow to fix my prices for a year again. This way I can avoid the another major price increase.
If you like your current supplier, but found a better deal elsewhere, ask whether they’ll price match. Always worth asking, as you have nothing to loose.
Other ways to save money on your energy bill
Max your radiators efficiency
Heat from radiators can get lost into external walls. To keep the heat in the room instead, use radiator foil reflectors. You can also make your own budget friendly but effective radiator foils using this How to DIY Radiator Foil Guide.
Make small adjustments to save money
Check out these 30 Top tips to keep warm this winter & save money
Get help towards your heating bills this winter
You may be eligible to Get £140 off your winter energy bill via Warm Home Discount and Cold Weather Payment.