ENERGY bills are set to rise by £94 for millions of households in the UK today.
Ofgem‘s price cap has risen from £1,834 a year, the lowest figure since March 2022, to £1,928 a year.
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It means the average household will now see their annual bill increase by £94.
The price of electricity has risen from 27.35p per kWh to 28.62p per kWh.
The unit rate for gas has risen from 6.89p per kWh to 7.42p per kWh.
Around 4.3million households on prepayment meters will continue to receive a government-backed discount to ensure that they aren’t charged more than those who pay by direct debit.
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It’s important to note though that this is not a cap on the overall amount people will pay for their energy.
Instead, it caps the amount that they pay per kilowatt hour, or unit, of gas and electricity.
The £1,928 figure is calculated based on what Ofgem thinks an average household will use.
This is calculated assuming that a typical household uses 2,700 kWh of electricity and 11,500 kWh of gas over a 12-month period.
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Those who use less will pay less, and those who use more will pay more.
Be aware that the exact unit rates and standing charges that you pay will vary slightly based on your supplier, where you live and how you pay for your gas and electricity costs.
To calculate how much you can expect to pay over the year, you will need to find out both your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.
The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12 and you’ll be able to work out how much you should expect to pay each month from now on.
However, Ofgem will once again review the level of the energy price cap in April, July and October – so your bills may come down slightly later on in the year.
How can I cut my energy bills?
If you don’t have a smart meter and haven’t sent your supplier recent meter readings – it’s worth submitting one now.
An updated meter reading will mean your supplier has a more accurate idea of your usage to bill you accurately.
There are several cheap and easy ways to heat your home and cut down your electricity costs.
Every degree you increase the temperature of your thermostat is estimated to hike your heating bill by about 10% – so get the balance right.
The Energy Saving Trust recommends that your thermostat should be set to the lowest comfortable temperature, which for most is between 18°C and 21°C.
You can also turn your boiler’s flow temperature down as well as any thermostatic radiator valves in some rooms – you could save around £180 annually on your energy bills.
A couple managed to cut £400 off their EDF Energy bill by turning off their immersion heater.
Topping up loft insulation and switching to a smart meter can bring a household a further £230 worth of annual savings, according to Nesta.
It is also important to ensure that when your boiler’s running there’s no draught.
Ventilation is good for health and air quality but it’s the first place where heat will escape.
If there’s a draught, grab a draught excluder and plug the gap.
You should also ensure your windows are closed before the sun sets.
Consider what rooms in your home need heating.
You won’t be using each one 24/7 so make sure the heating is off in any rooms that aren’t occupied.
Making some simple tweaks to the way that you use common appliances like dishwashers, fridge freezers, and washing machines – could also slash £1,00s of your electricity bills.
The best part about all these changes is that they won’t cost you a penny as they are free.
What energy bill help can I get this winter?
Thousands of households are due up to £25 in free cash after cold weather payments were triggered in hundreds of postcodes.
The Department for Work and Pensions (DWP) hands out the free cash to help support hard-up Brits during cold spells.
And eligible households get the cash paid directly into their bank accounts within 14 days.
The cold weather payments are made in locations where residents experience continuous below-zero weather.
Households can get £25 during each seven-day period of low temperatures from now until March 31.
Cold weather payments were triggered in almost 300 postcodes in November – meaning that thousands of households are owed cash.
Plus, millions are due up to £600 in winter fuel payments.
You should have received yours by January 26, 2024 at the latest.
If you haven’t got your payment by then, you need to call the office that pays your benefits.
Those details can be found in the letters they have sent you.
And if you’re found to be ineligible for the winter fuel payment but want to challenge that decision, there’s a government form for that, too.
Millions on benefits will also receive the final £299 cost of living payment in February.
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We’ve previously explained who’s eligible and whether you’ll need to act to get it.
Additional support is also offered by councils in the UK through the Household Support Fund.
This post first appeared on thesun.co.uk
