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Warning: Energy bills to hit highest level for 3 years this week!
Energy Price Cap rises 3.6% on Thurs, and a predicted further 21% in Jan. Yet for many, these rises are VOLUNTARY!
To help, we've blagged EXCLUSIVE CHEAPEST FIXES if that's right for you...
 This Thursday's (1 Oct) 3.6% Ofgem Price Cap rise for Eng, Scot & Wales may sadly be the least of our worries. The latest forecast predicts a further 21% rise from 1 Jan, the coldest time of the year. If that happens, it'd mean rates over 30% higher than the same period last year - though in practice heavy gas users would see bigger rises, electricity-only users smaller. Yet remember,
the Price Cap only applies to those on firms' standard tariffs, not fixes or special deals - albeit that's still 60% of homes. Let me start with a key facts summary...
- You DON'T need to let the hikes happen. If you're on a standard tariff, many can avoid this by switching to the New (Exclusive) Cheapest Fixes where you lock in the rate for a year or two, so it won't rise. Don't just stick with your existing firm though, it may not be the cheapest.
- Electricity VAT is being scrapped for six months from Thursday too. This applies to the elec unit rates and Standing Charges (not gas). How that impacts you depends what tariff you're on. Those already on fixes or other non-Price Cap tariffs should see their electricity bills cut by 4.8%. For those on the Cap, the 3.6% Price Cap rise includes the VAT cut - without it, the average rise would've been 6.2%.
- On monthly Direct Debit? It's Meter Reading Week. If you've NOT got working smart meters, submit an up-to-date reading a few days either side of Thur's change to reduce the risk it estimates you've used more than you actually have at the new rate. Fixed? You could do this too due to the VAT cut. See firm-by-firm when & how to do a reading.
- The big rise on this Cap is for gas users. The new 1 Oct Price Cap Direct Debit average UK rates, including VAT when it's charged, are as follows (though these can materially vary by region, see regional Cap rates for full info):
|
Unit Rate |
Standing Charge |
| Electricity |
26.32p/kWh (was 26.11p) UP 0.8% |
54.83p/day (was 57.19p) DOWN 4.1% |
| Gas |
7.97p/kWh (was 7.33p) UP 8.7% |
29.68p/day (was 29.04p) UP 2.2%
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- The January Cap is predicted to rise by a massive 21%. The latest predictions are a tad lower than they were, but still are for a further 21% rise on 1 Jan, and not predicted to drop much in April. The main reason for these big changes is the wholesale rates energy firms pay... and they've been sky-high recently. We're six weeks through the 13-week assessment period, so those highs are now baked in. So while exact predictions change weekly, it's now sadly almost unthinkable it won't rise, and improbable it won't rise substantially. Expect a ballpark of 12% to 30%, depending on world events (barring Govt intervention). More below on why prices are set to rise.
- Check your Direct Debit (DD) from Thursday. Use our 'Is your Direct Debit right?' calc to see roughly what it should be. If too high, see how to challenge unfair DDs. Plus, if you're more than two months in credit right now, consider asking to get excess credit back.
- What does the Government say about this? A fortnight ago, I asked the new Energy Secretary Miatta Fahnbulleh. Watch the full interview in my Energy Bills ITVX special, but key clips include Why are bills UP £300 when they were meant to be DOWN £300? and
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