Energy regulator Ofgem have announced the energy price cap will increase on 1st April by a massive 54%.
Why have prices risen?
A global increase in energy prices has caused multiple suppliers to go under, and is now resulting in a huge increase in bills. Suppliers can not afford to supply electric and gas to customers for less than they paid for it.
What is the price cap?
It is important to note – this is not a cap on your bill – the cap is how much you can be charged for each unit of energy you use – each unit can now be charged 54% higher.
The current average direct debit energy bill is £1,277 a year- in April this will rise to £1,971 a year. This means the average bill will increase by £693 a year.
Will you be affected?
This applies to people on default tariffs – how do you know if you are on a default tariff:
- If you’ve never switched
- If your energy supplier has gone under and you have moved to a new suppliers default tariff
- When your current fixed tariff ends you will go onto a default tariff.
What help is there available:
In April there will be a Council Tax rebate of £150 for homes in bands A to D
In October there will be a £200 discount on energy (this is a government loan paid back over 5 years through £40 a year added to your energy bill).
There will be a £140 million pound discretionary fund given to Councils to support household that don’t receive the council tax rebate.
There will be changes to the Warm Home Discount scheme so that more people can access this £140 discount off their energy bills in the winter months.
The LEAP scheme offers free impartial energy advice, free energy saving measures and help accessing further financial support such as Energy Trust grants. To book a free call with an energy advisor call freephone 0800 060 7567.