Under energy regulator Ofgem’s latest energy price cap, announced on February 25th, gas and electricity bills for around 22 million homes in England, Wales, and Scotland will rise by 6.4%, which is higher than expected.
The price cap is set every three months and limits the amount suppliers can charge for each unit of energy. It is increasing due to the rise in ‘wholesale costs’—the amount suppliers must themselves pay for their gas and electricity—which have been climbing globally, particularly the price of gas.
This third consecutive rise means that a household using an average amount of gas and electricity will see its annual bill increase by £111 per year, or £9.25 per month, bringing the total bill to £1,849 annually.
Potential sources of help if you are struggling to pay your utility bills:
Not being able to afford to pay your bills and debts can be very stressful. As a first step, reach out to your energy supplier(s), ideally before you miss a payment, to find out how they can help you.
Never suffer in silence; there are support services available, including:
● Citizens Advice – providing free, independent and confidential advice on getting out of debt, and a variety of other issues. With branches across the UK they have useful resources online, such as debt FAQs and budgeting tools.
● Money Helper – here to help people improve their financial
wellbeing and help guide people through any of life’s trickier circumstances and changes. Money Helper has tools and calculators on their website; which you can access for free to assist you in taking steps to resolve any financial issues.
● The Energy Regulator Ofgem – aims to protect gas and electricity
customers by working to deliver a fairer energy system.
For further support and resources, see our ‘Support Centre’.