URGENT UPDATE: Starting January 2024, the energy price cap will rise by 0.2%, pushing the average annual bill from £1,755 to £1,758 for customers paying by direct debit. This increase affects all households, particularly those with higher electricity usage, as costs for electricity and standing charges are on the rise, according to industry regulator Ofgem.
With wholesale gas prices falling, this new cap signals a critical shift for consumers. Households are urged to check their energy tariffs immediately, as some suppliers are now offering competitive fixed rates that could save customers up to £200 annually compared to the new cap. Companies like Eon, EDF, and Outfox the Market have deals below the cap, providing an opportunity for financial relief.
This slight increase in the cap does not limit total bills; actual payment depends on individual energy consumption. Therefore, customers on price-capped tariffs will see their bills increase slightly in January. However, the potential for further rises looms, with expectations that the cap could increase again in April. Locking in a fixed rate now could shield consumers from future price hikes.
For those wary of committing to a fixed tariff due to possible fluctuations, tracker deals are available, which follow wholesale prices while guaranteeing to stay below the cap. This offers another avenue for managing energy costs amid unpredictable market conditions.
Consumers facing challenges with their energy bills are encouraged to contact their suppliers or seek assistance from charities like Marches Energy Agency, LEAP, or National Energy Action. Additionally, customers of Housing Plus Group can access tailored support through a free energy advice service, in collaboration with the Cadent Foundation.
As energy deals change frequently, it’s crucial to stay informed. Websites such as moneysavingexpert.com, GoCompare, and Uswitch provide up-to-date comparisons to help consumers make the best choice for their energy needs.
Act now to ensure you’re not paying more than necessary as the energy landscape shifts. Share this critical information with friends and family to help them navigate the upcoming changes.
