FURIOUS energy customers have complained about price hikes that are set to push up some people’s bills by eye watering amounts.
Billpayers have started to receive messages informing them of how much their gas and electric costs will rise in April.
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This is when the price cap goes up by nearly £700 affecting millions of Brits now on variable tariffs – but exactly how much you pay will depend on your usage.
Bulb is one of the suppliers that has now written to its 1.5million customers telling them how much more their payments are expected to be.
One furious customer tweeted: “My bill has gone from £90 per month to over £200 per month in just one year. Madness.”
Another said: “£75 in April 2020, now £275 in 2022. Same household, same usage.”
In a message to customers on Twitter, Bulb said that it was aware that the price rises “are coming at a challenging time for lots of people” and kept it’s chat helplines open for longer over the weekend to help.
A Bulb spokesperson said that energy prices have quadrupled in the past year and unfortunately prices will be going up for customers on April 1.
They said: “We know this is a worrying time for many people and so we’ll provide as much help as possible to our members, like financial support and help installing free home energy efficiency measures.”
Customers of Shell Energy have also been sent updates about how the price cap will affect their bills through an “annual personal projection”.
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One customer shared that their payment will rise from £3,433 a year to £5,387 – an extra £1,954 a year.
A spokesperson for Shell Energy said: “We are writing to our customers to set out how the changes to prices, in line with the price cap, will affect them and what it’s likely to mean for their annual projected spend.
“We want to be transparent about this, because many families will be worried about what this will mean for their finances, particularly when the prices of so many other goods and services are also rising.”
The firm said it’s priority is helping vulnerable customers. It has set up a “Here to Help” section on its website and is urging any on struggling to get in touch.
Meanwhile, British Gas has also informed customers of the coming change.
A customer on twitter showed a new estimate that would see his gas costs go up from £680.89 to £1,139 and electric from £2,148.58 to £3,082.10.
They said: “How is this even been allowed to hike to this crazy prices this is gonna cause some hardship for sure for so many.”
Another said: “Nice email off British Gas informing my gas and electric is increasing in April by a total of £1,100. Making my annual cost for both £3,400. For a family of three. In a four bed detached.”
British Gas previously said that it knew customers “will be deeply worried” about the price cap rise and has hardship funds that anyone struggling can apply for.
It’s not just Bulb, Shell Energy and British Gas – all suppliers are putting up prices for variable tariffs in line with the price cap this April.
It’s because wholesale costs have shot up in recent months and suppliers can’t afford to make prices any cheaper for customers and, the price cap prevents them from charging any more – but it rises twice a year in April and October.
EDF and Ovo Energy are among the firms that confirmed they will be writing to customers to confirm the price rises too.
If you haven’t already received and email or letter from your supplier, then you’ll likely get one in the coming weeks.
Notices about bill rises being sent out by suppliers are estimated, so send them an up to date meter reading to make sure it’s as accurate as possible an avoid overpaying.
Reducing your energy use can help reduce your bill, and there are several energy savings tricks and hacks you can use around the home.
You can check out a full list of energy reducing home tips here.
Price capped bills: how do they work?
Ofgem says that the average dual fuel bill will rise under the price cap from £1,277 to £1,971 a year – an extra £693.
Around 22million customers are now on standard variable bills and subject to the price cap as fixed tariffs are now far higher.
But the exact amount you pay depends on your usage.
It’s because the price cap affects the price you pay per kWh of gas or electricity used.
For electricity the cost is rising from £0.21 per kWh to £0.28 per kWh.
And for gas it’s rising from £0.04 per kWh to £0.07 per kWh.
The estimates being sent out to customers by energy companies are based on households’ estimated usage and so can be higher than Ofgem’s example for a typical bill example, or lower.
Energy bills are also subject to VAT of 5%, which has not changed, despite calls for the tax to be scrapped temporarily.
But as it’s a percentage of the bill it means the amount of tax you pay on it will go up to in cash terms.
What are standing charges?
Energy bills also come with a daily standing charge, which is also price capped and will rise in April, from £0.25 to £0.45 for electricity and from £0.26 to £0.27 for gas.
The rise in standing charges has caused more anger among billpayers and confusion over what it covers.
One energy customer said: “Gone from paying around £100 per month when I joined bulb in April 2019 to a now recommended £240 per month.
“I broadly understand the reason for the rises in price regarding the cap but the doubling of the standing charge seems like an opportunistic cash grab.”
Another said: “Yes… Energy prices have risen. And you’ve also raised standing charge per day as well. What exactly is the standing charge per day for?”
The standing charge is a fixed cost so unfortunately you can’t reduce this part of your bill by using less energy.
Standing charges cover the cost of running and maintaining the energy network, a bit like line rental with a landline phone.
It also covers the cost of failed energy firms and more than twenty have gone bust recently because of rocketing wholesale prices.
Part of it also covers the green gas levy to help reach net zero emissions by 2050 and the costs of the Warm Home Discount scheme, which offers low-income households money off bills.
Energy bill help if you’re struggling
There are schemes offered by suppliers, local councils, charities and the government that could also help.
If you’re struggling with energy costs or other bills there are plenty of organisations where you can seek advice for free, including:
You should speak to your energy supplier in the first instance as they have schemes in place to help with bills and arrears, including hardship funds and grants.
Your local council may also be able to help with cash and grants if you are struggling with bills through the Household Support Scheme
The winter fuel payment scheme, where those getting the state pension can get between £100 and £300 to offset the cost of keeping their homes warm.
Low income households can get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme too.
The warm home discount scheme means you can a £140 payment that goes toward your heating costs – but you need to act quick as this scheme has already closed at most energy suppliers.
Chancellor Rishi Sunak announced a £150 council tax discount for millions of Brits in an attempt to ease the cost of living crisis.
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