Ofgem is raising its energy price cap to £1,723 per year for a typical dual-fuel household on October 1, an increase of £60, or 4%, on current levels. The cap sets a maximum price suppliers can charge customers in England, Scotland and Wales for each unit of gas and electricity, as well as a maximum daily standing charge.
Experts at Energy Saving Trust, Uswitch, and Octopus Energy have shared 12 simple changes that could save an estimated £670 per year in Great Britain. Many of the changes do not involve spending much money or making major improvements to your home.
Switch to a fixed deal and save £184
Sabrina Hoque, energy expert at Uswitch.com, said: “The good news is there’s still time to shield yourself from these increases. There are currently 23 fixed energy deals on the market that beat the new October cap, with the cheapest offering a typical household around £184 in savings a year compared with standard rates.”
She added: “Locking in a fixed tariff means you’ll already be saving against the current price cap, and you know exactly what your rates will be, shielding your bills from any future rises for the duration of the tariff. Switching your energy tariff to a fixed deal is the single biggest saving you can make.”
Boiler, thermostat and standby savings
Greg Jackson, CEO and founder of Octopus Energy, said turning down the flow temperature on a combi boiler to 55-60C could save up to £65 a year. Turning the thermostat down by one degree, from 22C to 21C, can save £120 a year in Great Britain and £80 in Northern Ireland, according to Energy Saving Trust.
Switching appliances off standby could save around £45 a year. Avoiding the tumble dryer and drying clothes outside or on a rack indoors could save around £50 a year, while checking insulation and draught-proofing could save up to £85 a year.
Kettle, washing machine and lighting tips
Avoiding overfilling the kettle could save around £10 a year, and fitting an aerator to a kitchen tap could save another £20. Washing clothes at 30C and cutting washing machine use by one load each week could save around £26 a year.
Reducing dishwasher use by one cycle each week could save around £10, and swapping one bath a week for a four-minute shower could save around £10. Energy Saving Trust says LED lightbulbs use 80% less electricity than halogen lights and last up to 20 times longer.
The price cap rise, effective from October 1 for the three-month period to December 31, takes rates to a three-year high. Electricity bills will rise by around 1% and gas bills by 8%. Ofgem said the increase is largely due to higher wholesale gas prices linked to the conflict in the Middle East.
The Government has said it will remove VAT from electricity bills from October 1 to March 31, 2027. Without this intervention, the headline price cap figure would have been around £45 higher for a typical household. People will still pay 5% VAT for gas, and the discount is automatically applied by suppliers, including to customers on fixed-rate tariffs.
Prime Minister Andy Burnham said the VAT removal was planned “to give people that little bit of help”. Octopus's Mr Jackson said: “The Government’s decision to take VAT off electricity and remove some of the levies from bills has helped soften the blow this winter, but bills are still too high.”
