Energy help and how to cut your bill as Ofgem announces price cap rise

Energy bills are set to rise again for millions of households this spring as Ofgem confirms its next price cap.

The Ofgem energy price cap will rise from £1,738 to £1,849 from April, for the average dual fuel household paying by direct debit. The price cap will remain at this level for three months until July, when it will change again. Ofgem confirmed the new level today after weeks of speculation of a major rise for UK households.

The price cap sets the limit on how much your energy supplier can charge you for each unit of gas and electricity you use, plus standing charges. This means that there actually isn't a cap on energy bills - instead, the headline figure describes how much the typical direct debit household pays per year.

In short, the more gas and electricity you use, the more expensive your bill will be. Since the energy crisis started, more and more Brits are struggling to cover the cost of their bills. Ofgem's price cap eased slightly over 2023, and last year, however, prices have steadily been rising experts believe they could keep going.

There are many ways you can cut your energy bill costs if they are getting a tad expensive, but there is also a range of support you can get if they are becoming unmanageable. Here we highlight a few ways you can help cover your bills when the price cap rises.

Take stock of your energy usage

If your energy bills are becoming a bit expensive, the first thing you should do is take stock of how much electricity and gas you are currently using. Ofgem estimates that the average household consumes 2,700 kwh of electricity and 11,500 kWh of gas over 12 months - which is used to calculate its price cap figure. So if you are using more than this, then your energy bills will be more expensive.

A few moments of recollection will remind you whether you are leaving lights on in rooms that are not in use or doing four loads of washing and tumble drying over the week. If this is you, start by reminding yourself to turn off lights and cut down on the number of washing loads you do. When the new price cap comes in, it will be spring and many Brits may be not using their heating as much as they did in the deep depths of winter. Even though this is the case, make sure you are only using it when you actually need it, by setting a timer. You could really rack up your bills by accidentally leaving the heating on all day.

Other ways of saving energy are turning things off instead of leaving them on standby, turning appliances off at the mains when not being used, and unplugging chargers when nothing is connected. Other, more manual things you can do to help your bills are bleed your radiators regularly and service your boiler at least once a year. Simple acts can really help lower the cost of bills, as it truly is every little helps.

Shop around for the best deals and consider fixing

The price comparison site uSwitch this month urged Brits to "act now" before Ofgem's price cap rises on April 1. They advised households should get off "price-capped" tariffs and fix.

This is because Wholesale energy prices have hit a 15-month high after being pushed upwards by high demand for gas and electricity during the cold winter and global instability. This means the price cap is set to rise again in July and potentially over the rest of the year. Although it is far too early to make concrete predictions on this.

If households lock into a deal which is lower than the price cap, then it will help them save money when and if the price cap rises again over the coming months. Those not wanting to fix can also now consider tariffs that track the price cap but promise to stay below it by a certain margin.

Elise Melville, energy expert at Uswitch.com, said: “If you haven’t switched energy lately, you are likely to be already paying over the odds, and the coming price hikes will only make things worse. Now is the time to take action, before the price rises hit. Any deal that is priced at, or below, the current cap level is likely to save you money over the coming year. If youʼre not ready to fix, then consider a tariff that guarantees a discount on the price cap, whether it rises or falls."

“Standard tariffs are now the most expensive way to pay for your energy. The good news is, a better deal is out there for most homes."

Talk to your energy supplier

This is the first thing you need to do if you are worried about covering your next bill or are struggling to pay. Not paying your energy bill can have some serious financial impacts on you as it can damage your credit score, and can even result in court action and visits from debt collectors.

Under Ofgem rules, energy suppliers need to help all their customers - no matter what their situation is. Once you have informed your supplier of your situation, they should then come up with a tailored plan to meet your needs, and this can include:

• A full payment plan review
• Affordable debt repayment plans
• Payment breaks (though this won't be right for everyone)
• Payment reductions
• More time to pay
• Access to hardship funds

All this help is decided on a case-by-case basis - so not everyone will get the same support. If you feel that the business is not listening or helping – or they are making things worse - then you can take your complaint to the Energy Ombudsman for free.

If you are a vulnerable customer, your supplier can put you on the Priority Services Register. This is a free support service that offers a wide range of extra services. These include advance notice of planned power cuts, priority support in an emergency, and help reading your meter. To be eligible for this support, you must have reached the state pension age, have a disability or long-term medical condition, or be recovering from one. If your provider does not have this information about you, you should contact them to tell them.

Ask for emergency credit if you're a prepayment customer

All prepayment energy customers should be offered emergency credit so they don't run out of power. Many of the major providers - including British Gas and Shell - provide £10 emergency credit. Some suppliers provide more than like, for example, Utilita gives customers up to £15.

To get the help, you usually need to have very little money left on your meter - usually less than 50p for electricity or less than £2 for gas. You will need to pay this back the next time you top up.

Suppliers also offer a service called "Friendly Credit" which means you won't be cut off when your credit runs out at certain times of the week. The times can vary between suppliers but usually, you won't be cut off between 6pm and 9pm Monday to Saturday and all day on Sunday and bank holidays. Again, you need to pay anything you've used during this time back when you next have to top up.

Another support offered by suppliers is "additional support credit" - this is made available if you can't afford to top up your meter and you are facing self-disconnection. Usually, this support is available to those in vulnerable situations, such as those of state pension age, or with a disability or long-term medical condition. It is also down to the supplier to assess who is eligible, what you can get, and how it works.

Apply for free energy grants worth up to £2,000

Most energy businesses offer energy or heating grants to their customers. Again, you will be able to access this type of help if you speak to your supplier and make an application through the supplier's website.

Each energy firm offers different support. The majority of the UK’s biggest energy firms, such as British Gas, EDF, Octopus Energy, E.ON, and Ovo, offer help through cash grants. British Gas offers grants of up to £2,000 to help with energy debt through its Individuals and Families Fund to both customers and non-customers. Other energy suppliers normally only offer help to their customers.

Exact eligibility requirements vary – for example, some say you need to be in receipt of certain benefits – and you normally need to have spoken to a debt advisor first. You can find out what help is available, who is eligible and how you can access it through your supplier's website.

Charitable support

There are several charities that can offer you support and guidance if you are struggling to pay for your energy, or if you are in energy debt. Don't suffer in silence. Here are some energy-specific debt charities:

• Home Energy Scotland

• National Energy Action (NEA)

• NI Energy Advice

For wider debt help, speak to:

• Citizens Advice

• StepChange

• National Debtline