Energy bills are going up - here's what you can do about it
Household energy bills have risen again but there are ways to keep a lid on your expenditure.
Energy prices have surged nearly 4%, with projections indicating a significant increase of up to 16% in January. This price cap affects around 20 million households across England, Scotland, and Wales. While the government can only do so much to alleviate the burden, experts recommend taking proactive measures to manage rising energy bills.
Ofgem advises consumers to consider fixed deals, which lock in the unit cost of gas and electricity, though the total bill will still fluctuate based on usage. However, predicting the long-term viability of fixed deals can be challenging, as current high wholesale prices might be less appealing once stability returns. Consumers are encouraged to scrutinize exit fees when selecting a fixed deal, as variable prices falling below the fixed rate could lead to hefty exit charges.
Direct debits are typically more cost-effective than standard credit payments, especially when paired with fixed deals. For those reliant on prepayment schemes, the good news is that the rate has now dropped slightly below the capped direct debit variable rate. Additionally, off-peak electricity rates can provide savings for those charging electric vehicles overnight.
Individuals on means-tested benefits will receive a £150 electricity bill reduction, while pensioners will benefit from the winter fuel payment. Various grants and support schemes are available for those struggling to pay their energy bills, but caution is advised when seeking unofficial discount schemes. The key to managing energy costs lies in a combination of proactive monitoring, strategic billing arrangements, and adopting energy-efficient habits.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
