Households have been warned they risk overpaying for their energy if they don’t send meter readings to their supplier before tomorrow’s price rice.
Ofgem has raised the cap from £1,568 to £1,717 for the average dual fuel household. This will add about £12 a month to the average bill.
From tomorrow, energy customers on their supplier’s standard variable tariff and paying by direct debit will pay 24.5p per kilowatt-hour (kWh) for electricity, and a standing charge of 60.99p. Gas will typically costs 6.24p per kWh, with a daily standing charge of 31.66p.
The bill hike takes effect just as temperatures drop and millions of households turn the central heating on for winter.
Households on their supplier’s standard variable tariff (SVT) and who do not have a smart meter should submit their electricity and gas readings to their supplier today to ensure any energy they use before tomorrow is not inaccurately billed at the higher prices.
Suppliers who have not received meter readings base their bills on estimated usage, meaning households could be overpaying, while others may not be paying enough.
Energy prices are going up for consumers despite the fact that wholesale prices have fallen. This is because the price cap mechanism is time-lagged. Each cap is fixed for three months, with the new 1 October to 31 December price cap based on wholesale rates from May to August.
Bill-payers need to wait until January for the recent falls to be factored in, which is why the cap is predicted to drop slightly.
A survey by fuel poverty charity National Energy Action and YouGov found almost half (46%) of adults in GB say they are likely to ration their energy use this winter. The study found that 27% of adults in the UK have found it difficult to pay for energy in the past year.
The charity warned that tomorrow’s price cap increase will leaves 6 million UK households in fuel poverty.
‘We find ourselves stuck in a predictable loop’
Adam Scorer, chief executive at National Energy Action, said: “Millions of households face another dreadful winter, resigned to increasing energy debt or not heating their homes at all. We find ourselves stuck in a predictable loop of increasing prices and inadequate support.
“Whether or not wealthy pensioners should receive help with their energy bill, the decision to restrict the Winter Fuel Payment has put more vulnerable pensioners at risk.”
Scorer added: “There is still time for the UK government to increase the support provided through the Warm Homes Discount scheme and to work with Ofgem and energy suppliers to provide direct support to reduce bills, help people at risk of self-disconnection and tackle record levels of energy debt. But this must be the last winter for the quick fix. Government needs a plan to tackle debt, to tackle affordability and to deliver warm homes.”
