What happens on April 1st?
This is the day that energy suppliers are allowed to increase their variable gas and electricity tariffs to the new maximum set by the energy regulator, Ofgem. Almost all households now have these maximum gas and electricity bills – about 22 million in total. For all providers, unit gas and electricity prices and fixed charges – the amount charged each day for a household supply – are rising. Energy companies can only charge up to limited prices and the average dual fuel bill can not exceed 97 1,971. Higher-use households will have significantly larger annual bills. The new bills hide large increases in fixed electricity bills and the unit price of natural gas. The new bills hide large increases in fixed electricity bills and the unit price of natural gas. Shell Energy, for example, recently told its customers in the East of England that the fixed electricity bill was rising from 24.01 p to 37.92 per day, – a 57% increase. The rate for each unit of electricity increases by 40% to 29.24 pa kWh. Its fixed gas charges are expected to increase by a little more than 4%, but the cost of each unit increases by 81% from 4.05p to 7.34pa kWh. Other suppliers charge similar increases. Bathing will become more expensive when prices go up. Illustration: Kyle Smart
Will this be the end?
Unfortunately, Friday’s rise is just the beginning of the pain as prices are expected to rise again in six months. The regulator, Ofgem, announced the increase next week, several weeks before the war in Ukraine, pushing wholesale gas prices even higher. In July, Ofgem staff will begin calculating what they think the new price cap should be based on wholesale costs, and unless there is a significant reversal in the market, experts warn that the new ceiling will be around 2,500-3,000. Or a year. Three years ago, wholesale gas cost about 40 p per thermometer in the UK. This week the price was around 240p per thermometer, having peaked earlier at 460p. Wholesale gas prices have skyrocketed. Photo: Joe Giddens / PA
How do I know if I am on an invoice with a price cap?
The price cap applies to all default invoices or standard variable invoices, as they are also known. You’re in one unless you’ve actively chosen another deal. If you have never changed your energy bill, were in a stable deal that has expired, or were with a supplier that has collapsed, then you are in a deal with a ceiling.
I was told that my accounts are growing more – how is that possible?
Many readers have contacted the Guardian Money in recent months complaining that their energy bills have almost doubled and asking how this can be done. Households that have signed fixed price invoices in the past two years – agreements that have just been concluded – are going from a very cheap invoice to one that has become very high. They may feel unfair, but now they pay the same as everyone else.
My supplier wants to increase my direct debit – do I have to accept that?
This week, Martin Lewis told lawmakers that energy companies are playing “fast and slow” by raising direct charges beyond what is justified. Readers of Guardian Money have described receiving claims that double or even triple their monthly payments. Martin Lewis told lawmakers that energy companies are playing “fast and slow” by raising direct charges beyond what is justified. Photo: Mark Thomas / Rex / Shutterstock If you’re on credit right now, your energy provider should not increase your direct debits by more than 54% – the amount of prices increases. If he tries to do so, you can refuse. After all, there is nothing stopping you from connecting to e-banking – or contacting your bank – and canceling your standing order. You can set another later to a shape that better reflects your usage. That said, it makes no sense to put it too low, as you will end up with delays. Most households will prefer to pay a fixed amount all year round and create a balance in the summer that will help them get through the winter months, when consumer balloons and prices are expected to be even higher. A household that expects bills to rise to 2. 2,400 a year in October will have to pay around -200 180-200 a month now if it wants to go close to zero this time next year. If you plan to reduce your consumption (who does not?) Then you can reduce the payments proportionally. Those who provide regular cash indications will be able to better judge if their account is in arrears or has a surplus and adjust their payments accordingly as the year progresses. You can choose to pay upon receipt of your bill, but the charges are higher – around 95 95 per year on average. Those who provide regular cash counts will be able to better judge if their account is lagging or in surplus. Illustration: Kyle Smart
I have been offered a fixed price invoice – should I get it?
Probably not. Guardian Money reader Clive MacDonald recently emailed him saying he had just signed a two-year dual-fuel contract for 4 480 a month – up from 3 163 a month he currently pays. Its current fixed price invoice expires soon. There are some biennial fixed rate invoices out there – however, they are much more expensive than the ceiling “In a panic, I signed up, finding it impossible to get anything through Uswitch or similar platforms, and now I wonder if this is the best option and if risking a variable plan might be better,” he wrote. We advised him to use his 14-day relaxation period to get out of an invoice that would let him pay less than £ 5,000 a year – up from 95 1,956 he pays today. By getting this deal he would be paying the higher bills now than in October. There are some two year fixed rate invoices out there – however, they are much more expensive than the ceiling. Comparison sites – which make money from consumer change – tell people to stay put, which tells you everything you need to know. You could try installing a smart thermostat to reduce energy bills. Illustration: Kyle Smart
Are there any offers below the ceiling?
This week Utility Warehouse claimed to be offering the UK’s cheapest variable energy tariff, which would offer savings of 98 98 a year below the April ceiling. However, there is an important caveat: you also need to change your broadband and cell phone contracts, something most households will not be able to do or want to do. Otherwise, Octopus Energy offers customers who have been with it for eight months or more a variable charge of £ 50 cheaper than the price cap – but that’s it.
Has the chancellor not offered help?
Yes. If you pay city tax and live in a house in the AD bands, you will receive a. 150 discount next month. Your most recent bill will tell you which apartment your home belongs to. Those staying in houses in bands E to H may also qualify if they receive certain privileges. If you pay your city tax with a flat fee, the local council will pay 150 150 directly to your bank account. If you do not, it’s worth creating one now. This will make it easier for you to get the money. Otherwise, you will have to apply for the discount. In October, energy customers will receive 200 200 bills, but will have to pay for it over the next five years. If you pay city tax and live in a house in AD complexes, you will receive a discount of £ 150. Photo: Geoffrey Swaine / Rex / Shutterstock
My energy bill is already in arrears – what should I do?
Talk to your supplier and explain the situation. Large suppliers offer difficulty funds that can give you a grant to help you pay off debt. Citizens Advice has a list of difficulty chapters and how to apply. You will need to provide detailed information about your financial situation in your application. Households in the UK may also be able to receive £ 150 from their electricity bill for the following winter through their warm home discount plan. Councils in England have received 1 1 billion for a household support fund to help the most vulnerable. Contact your local municipality to see what, if anything, is on offer in your area. Only those in distress can expect help.
