Energy Price Caps:
Everything you need to know to be up-to-date. Predictions for the next few months.
With energy bills on everyones mind, its important to stay up-to-date with the recent energy price cap announcement
This article will cover what will happen to the energy price cap in the following months. For information about what the price cap is, click here.
Report Energy Theft
Energy theft is dangerous. It puts you and your loved ones in danger. If someone you know is tampering with their gas or electricity meter, make sure you report it 100% anonymously here.
The Stay Energy Safe Service can only take information on energy theft and meter tampering. We are not able to assist with calls regarding changing suppliers, bills, cheaper electricity or gas quotes, meter faults, meter readings, topping up pay-as-you-go, new meters, requesting a smart meter, boilers, power cuts, or car charging. If you need help with any of these, please contact your energy supplier.
What’s Next for the Price Cap?
The price cap has been reviewed every 6 months since its creation in 2019. In August 2022 this changed to a review every 3 months. It’s set by Ofgem, which is the government department for gas and electricity markets.
It was originally created to ensure customers pay no more than a fair price for their energy, but recently several factors have impacted it. The wholesale price of energy has increased massively. This is partially due to the Russian invasion of Ukraine. Although Russian gas only makes up 3% of the UK’s supply, it makes up around 40% of Europe’s. With the Ukrainian conflict still taking place, Russia has reduced the amount that they are supplying to Europe, which has increased the wholesale cost.
The government has announced the new Energy Price Guarantee that will reduce the unit cost of electricity and gas so that a typical household pays £2,500 a year, which will save the average household around £1,000 a year. This was said to be guaranteed for the next two years, but it will now end in April 2023. Meaning only this winter's bills will be covered by the policy.
You will not have to pay the amount you save directly back through taxes or bills. Instead, the cost is added to the nation's pre-existing debt.
It is important to note this price guarantee does not mean your bills are capped at £2,500, this is just an average that a household will now spend on their bills. The price guarantee is placed on the cost of gas and electricity per kilowatt hour(kWh) and the daily standing charge. With gas being capped at £0.10 per/kWh and standing charge at £0.28 per day, and electricity capped at £0.34 per/kWh and standing charge at £0.46 per day. These are averages and will vary by region, payment method and meter type. Learn more about the different payment/meter types and regional rates here.
If you are on a fixed rate tariff you may get a reduction in your unit price if appropriate until your deal ends and you move to your supplier's SVT (standard variable tariff). For more information about how the new price cap affects fixed rate and standard variable tariffs click here.
The new energy price guarantee is in addition to the cost-of-living payments and will not affect these. To read more about what schemes are available to you click here.
After this policy ends in April, what happens to bills will be reviewed again by the government, who have said will prioritise those who are most in need. According to analysts Cornwall Insight, the typical annual energy bill for households who don’t receive any further support will be around £4,347.
Struggling to Pay Your Bills?
If you’re already struggling with your bills, then the thought of them increasing again can be scary. If you’re finding it harder to make your payments or keep your meter topped up, try not to worry. There are things you can do to help keep the bills down.
To make sure you aren’t wasting any energy you can try changing your meter to a smart meter with an in-home display unit. This allows you to see how much energy individual appliances are using, and lets you keep track of how much you are spending day to day. You could also ask your supplier to fit a Pay-As-You-Go smart meter which will allow you to set limits on how much you spend.
To learn more about how to save money on your bills click here.
If you’re struggling with your energy bills, please find a list of the resources we have available to you on our site by clicking the following links:
What Not to Do
We talk a lot about what to do to help with rising bills. But it’s also important to cover what not to do.
Do not tamper with your meter
It may seem like a victimless crime, but you’re putting you and your loved ones in serious danger, whilst the costs of tampering and stolen energy are added to every honest paying customer bills.
For more information about energy theft, click here.
Find more stories about the results of meter tampering here.
To report your suspicions of meter tampering click here. Remember, you can stay 100% anonymous.
For More Help Click the Links Below:
- Ofgem