Energy prices in the UK have increased again, with little relief expected for households throughout the year.
From Wednesday, Ofgem’s updated price cap will take effect, raising the annual cost for a typical household paying by direct debit to £1,738. This represents a modest increase of £21 compared to the previous cap.
Why You Should Submit a Meter Reading
To avoid overpaying based on estimated usage, billpayers are being encouraged to submit an accurate meter reading immediately. Energy bills remain about 50% higher than pre-Covid levels, with analysts predicting a further 3% rise in April.
Shop Around for Cheaper Deals
Ofgem, the regulator overseeing 26 million households in England, Wales, and Scotland, advises consumers to explore fixed-price tariffs, which may offer better value than the variable rates governed by the price cap. However, these fixed deals come with a caveat: if prices drop before the contract expires, customers may miss out on savings.
Future Energy Price Predictions
Energy consultancy Cornwall Insight anticipates the price cap will rise by nearly 3% in April, followed by a potential dip in July, before climbing again in October.
The ongoing volatility in global markets, partly due to the Russia-Ukraine conflict, continues to make price forecasts challenging.
Craig Lowrey, principal consultant at Cornwall Insight, warns: “Consumers must brace for continued fluctuations in energy costs.”
Call for Long-Term Solutions
As energy prices creep up during winter, campaigners are urging the government to implement comprehensive home insulation programmes to help those most affected by rising costs. “We need long-term solutions,” said Caroline Simpson of Warm This Winter, a coalition of 40 charities.
The Impact of the Price Cap
The price cap affects households on default variable tariffs and is adjusted quarterly. For a household with typical energy usage, this equates to an extra £1.75 per month compared to the last cap.
Although prices are 10% lower than this time last year, many families still face financial strain.
Millions of pensioners, for example, are no longer eligible for the winter fuel payment, as it is now means-tested.
Key Tips for Managing Energy Costs
Energy companies are urging households without smart meters to submit accurate readings promptly. Elise Melville of Uswitch explains, “If you delay, some December energy usage could be estimated and charged at higher January rates.”
While the unit cost of gas and electricity is capped, total bills depend on usage. A cold winter could still mean significantly higher costs. Experts suggest the following to reduce bills:
Compare Providers: Use online tools or contact providers directly for better deals.
Conserve Energy: Reduce energy use where possible.
At The Grange Community Centre in Blackpool, support worker Shaun Toussaint advises visitors to explore all options. “If you’re comfortable online, compare prices yourself. If not, call providers for assistance.”
The latest price cap increase underscores the need for both immediate action and long-term strategies to manage energy costs.
By staying proactive—whether through submitting meter readings, exploring tariffs, or conserving energy—households can mitigate some of the financial strain.
