Energy prices are currently very high. Many people are looking to find a cheaper deal, but it’s likely your supplier’s standard default tariff rate set at the energy price cap by regulator Ofgem will be the cheapest rate available.
The energy cap is set to rise again in October 2022, so you’ll need to be ready to review what you’re paying again to see if it’s time to switch. Industry regulator Ofgem has warned the energy price cap could rise to around £2,800, an increase of over £800 on the current limit.
Currently, Direct Debit customers paying default tariffs are seeing their bills increase by £693 from £1,277 to £1,971 per year (based on average usage). The price cap for prepayment customers has risen by £708 from £1,309 to £2,017.
If you’re already on a fixed rate deal that’s lower than the energy price cap, and it’s coming to an end, you’ll automatically be moved onto the default tariff but your bills might go up sharply. It’s important to talk to your supplier if you can’t afford the new payments and to check if you qualify for extra support.
Energy bills support scheme
If you live in England, Scotland and Wales, you’ll now get £400 off your energy bill from October 2022. That’s an extra £200 on top of the £200 offered back in March. You’ll no longer have to pay this money back.
If you pay your bills by Direct Debit or credit, the money will be credited to your account. If you have a pre-payment meter, the money will be either added to your meter or you’ll get a voucher to use for top-ups.
If you live in Northern Ireland, you’ll get equivalent support.