British households are set to face higher energy costs this winter, despite a modest increase in the official price cap. The Ofgem energy price cap, which dictates the maximum amount suppliers can charge most customers, is currently £1,755 a year for a typical household paying by direct debit. This is set to rise to £1,758 from January 2025, just as the coldest weather arrives and heating usage soars.
Explore Your Tariff Options
One of the most effective ways to combat rising costs is to reconsider your energy tariff. Ofgem has previously encouraged consumers to look at switching to a fixed-rate deal. A fixed energy tariff locks in the price you pay per unit of gas and electricity, along with the standing charge, for a set period, protecting you from future market increases.
Analysis from independent websites shows that the cheapest fixed tariffs available on the open market are now more than 10% lower than the current price cap. For those willing to take on more risk, tracker tariffs are another option, with rates that fluctuate daily based on wholesale energy prices.
Claim Available Financial Support
Several direct financial support schemes are available this winter, particularly for older or lower-income households. The Warm Home Discount scheme provides a one-off £150 rebate on electricity bills for eligible customers. This is applied directly to your account, or issued as a voucher for prepayment meter users.
Pensioners may also be entitled to a Winter Fuel Payment of up to £300. It is automatically paid to those born before September 22, 1959. It's important to note that if your income exceeds £35,000, you will likely have to repay this amount through the tax system. Additionally, the £25 Cold Weather Payment is triggered during periods of sustained freezing weather, and households can receive multiple payments if several cold snaps occur.
Reduce Your Energy Consumption
Lowering your overall energy usage remains a straightforward path to savings. The Energy Saving Trust provides clear estimates on how small behavioural changes can add up. For instance, switching appliances off standby can save around £45 annually, while avoiding overfilling the kettle could cut costs by £30 a year.
One of the most significant savings comes from adjusting your heating. Simply turning down your thermostat by one degree could save you approximately £90 over the year, without a noticeable drop in comfort.
Seek Help and Improve Your Home's Efficiency
If you are struggling to pay your bills, it is crucial to contact your supplier immediately. Energy companies are obligated to offer support, which can include affordable payment plans, payment breaks, and structured debt repayments. Vulnerable customers should also inquire about the Priority Services Register, which provides extra assistance like advance notice of power cuts and help with meter readings.
Finally, a little DIY can go a long way. Before winter's peak, check your home for draughts around windows and doors. Draught-proofing is an inexpensive measure, with excluders available for under £10, and it can save an estimated £85 per year. For those on a low income, the Energy Company Obligation (ECO) scheme may provide grants for new insulation or boiler upgrades.
