HOUSEHOLDS found out yesterday how much energy bills will be going up by in October.
Prime Minister Liz Truss confirmed that bills will rise to £2,500 for an average family, up from £1,971, for two years.
1
They had been due to hit £3,500. However, the new Energy Price Guarantee, which replaces the price cap, only limits the amount suppliers can charge.
It doesn’t limit the amount a household will pay, this is based on their energy usage and size of their property.
However, uncertainty remained over how the 6.1 million households on fixed energy tariffs would be equally compensated.
The Sun can now reveal more detail on how the Energy Price Guarantee will work.
It means that all customers, regardless of their payment method and including those on fixed tariffs, will have bills automatically adjusted.
Customers who choose to pay via direct debit are given a discount on bills, while those who pay via prepayment meters pay more.
It is up to energy firms to roll out the change and switch people onto these rates free of charge.
Most read in Money
The current rates for those on a duel fuel tariff (standard variable tariff) that pay their bills by direct debit are:
- 7p per killowatt hour (p/kWh) for gas
- 28p/kWh for electricity
- A standing charge of 27p per day for gas
- A standing charge of 45p per day for electricity
Under the new Energy Price Guarantee, those with the same payment method, will pay a unit rate of, on average:
- 10.3p per killowatt hour (p/kWh) for gas
- 34p/kWh for electricity
- A standing charge of 27p per day for gas
- A standing charge of 45p per day for electricity
However, the amount you will pay will vary very slightly based on the company you’re with, where you live and how you pay your bill.
Energy firms will be in touch with customers to explain the detail of what the new prices will be.
What energy bill help is available?
There are plenty of energy grants and schemes open to help you out if you’re struggling.
British Gas has recently confirmed that it’ll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
Ask your supplier what’s on offer and how to apply, or check here:
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.
If you’re in debt there are plenty of services you can take advantage of and they offer free and friendly advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
They can also help you take the next steps if you need a debt management plan (DMP) to tackle your debt or an Individual Voluntary Arrangement (IVA). These are agreements for managing multiple debts.
