Energy bills will rise starting tomorrow as Ofgem’s new price cap takes effect.
The cap, which is updated every three months, had been on a downward trend, reaching a two-year low of £1,568. However, from Tuesday, October 1, the cap will increase to an average of £1,717 per year for a typical dual-fuel household paying by direct debit. This represents a 10 percent rise, or about £149 annually per household.
The impact of these changes will vary depending on energy consumption. Standing charges will stay roughly the same, with gas at 31p per day and electricity at 60p per day, slightly increasing to 32p for gas and 61p for electricity.
The biggest change is in the unit rate, which is based on usage.
Larger homes, due to higher energy consumption, are likely to see bigger increases in bills, while smaller properties may experience a decrease. Gas prices will rise by 14 percent per kilowatt hour (kWh) and electricity by 10 percent per kWh.
You can estimate how much your bill will increase from October using our energy bills calculator.
For pre-payment meter users, the price cap is slightly lower at £1,669 per year, while those paying upon receipt of a bill face a cap of £1,829.
Despite these increases, energy bills will still be at least six percent lower than last October, when the cap was set at £1,834 — £117 higher than this year’s figure.
In addition, millions of pensioners are set to lose out on Winter Fuel Payments, which range from £100 to £300. Previously available to everyone over the state pension age, the benefit is now limited in England and Wales to those receiving means-tested support, such as Pension Credit. Scotland is also expected to introduce similar changes.
Ahead of the price increase, the Energy Saving Trust has unveiled two simple steps to make homes more efficient this winter.
The Trust has dispelled a widespread heating myth that suggests it’s better to keep the heating on constantly at a low temperature. It warns that “it’s important not to have your central heating running all day if you don’t need it”.
In a blog on its website, the Trust advises: “Investing in heating controls is the best option for optimising your central heating system. Many homes already have a programmer, room thermostat and thermostatic radiator valves (TRVs).
“If your home doesn’t have these, installing them could save you about £95 annually on your energy bills. If you already have a programmer and thermostat, adding TRVs could save you £30 annually.”
Despite common misconceptions, upgrading or fitting new heating controls can be done without the need to replace the entire boiler, simplifying the process considerably. The Trust said: “Consider new controls if you don’t have a programmer, room thermostat, or TRVs. Modern thermostats have more accurate sensors and many smart controls offer additional energy-saving features.”
According to heating experts, there’s no benefit in turning the thermostat down too low. They recommend a comfortable temperature is usually in the low 20s, but it can be slightly lower if necessary.
Simply lowering the thermostat from 22C to 21C could save £80 per year.
The World Health Organisation suggests that the most comfortable temperature range for most people is between 18C and 21C.
The Energy Saving Trust also says thermostats should be positioned correctly in the home to work effectively. They need a free flow of air to sense the temperature, so they should not be blocked by curtains or furniture, or placed in direct sunlight or near heat sources that could give them false readings.
For further advice on maximising your central heating this winter and improving your home’s energy efficiency, visit the Energy Saving Trust website.
