ENERGY bills are expected to shoot up this winter – but cash-strapped homeowners want to know exactly how much by.
Energy consultancy BFY has predicted that bills could hit almost £4,000 next year – forcing millions of people into fuel poverty.
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The energy price cap is in place to limit how much suppliers can charge for default dual fuel tariffs in order to protect customers from sky-high bills.
Energy regulator Ofgem has recently announced plans to change the way the price cap works – it’s now set to change the cap every three months.
The next change will take place on October 1.
However, the regulator announces what the new price cap will be several weeks early to give bill payers time to prepare.
The Sun can now reveal that we’ll find out how much prices are soaring on 26 August.
The soaring price of energy is linked to rising wholesale gas prices.
They hit a record high of 530p per therm on Wednesday after Russia reduced supplies through the Nord Stream 1 pipeline to Germany.
The price cap already went up to £1,971 on April 1 from £1,277 – adding £700 a year to bills for 22million customers.
But it is widely expected to hit at least £3,000 in October.
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The price cap is mainly based on the price of wholesale energy and supplier costs.
More than 30 firms have folded in the past year, which has added to company costs.
The Sun has reached out to Ofgem for comment, and we’ll update this story when we hear back.
What can you do to avoid price hikes?
Unfortunately, there isn’t an awful lot you can do to escape rising energy prices.
With the cost of living sky-rocketing and inflation expected to hit 15% by the end of the year, we’ve all had our purse strings pulled tight, and everyone will be affected.
However, there are always schemes and funds available to hold your hand throughout the price hikes.
For example, there are plenty of energy grants and schemes open to help you out if you’re struggling, like the British Gas hardship fund which can lend you up to £1,500 free cash towards bills.
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.
Contact your supplier directly to see what they offer, what the eligibility requirements are, and how much you can get.
If you don’t know who your supplier is, you can find out here.
In terms of council funds, the Household Support Fund helps families with the rising cost of living, has been extended.
This help could include cash grants to pay bills or cover food costs – the help will depend on where you live.
For example, residents in Blackpool can get as much as £300, depending on their circumstances.
To find out what support is available in your area, contact your local council.
If you’re a pensioner, there are also extra grants available if you’re worried – those on Pension Credit should be eligible for the £650 cost of living payment.
All pensioners should also get an extra £300 payment in November or December to help pay for bills and essentials.
