Households are facing increased expenses on energy bills, but there are strategies to reduce these costs. The Ofgem price cap currently stands at £1,755 annually for the average household paying via direct debit, with a forthcoming increase to £1,758 in January.
Just as winter approaches and heating needs rise, the new price cap will come into effect. Ofgem advises households to consider switching to a fixed energy tariff for potential cost savings. Fixed deals lock in unit rates and standing charges for a specified period.
According to a comparison table by moneysavingexpert.com, the cheapest fixed tariff available on the market is more than 10% lower than the current price cap. Additionally, tracker tariffs adjust rates based on wholesale energy prices, reflecting market fluctuations.
This winter, there are additional financial aids available, especially for the elderly or low-income individuals. Eligible households could receive a £150 reduction on their electricity bill through the Warm Home Discount scheme, either as a direct account credit or a voucher for prepayment customers.
Pensioners born before September 22, 1959, may qualify for Winter Fuel Payments up to £300. Cold Weather Payments of £25 are issued when temperatures drop significantly for consecutive days. To lower energy bills, simple actions like minimizing standby mode usage and adjusting thermostat settings can make a significant difference.
Those concerned about bill payments falling behind can contact their supplier for assistance, such as payment plans or debt repayment options. Vulnerable customers can enroll in the Priority Services Register for additional support during emergencies.
Checking for draughts and sealing gaps around the home can prevent heat loss. Affordable solutions like draught excluders under doors can be effective in reducing energy costs. Draught-proofing measures can save up to £85 annually, with potential eligibility for boiler grants or insulation support through the Energy Company Obligation scheme for low-income households.