Ofgem energy bills price cap rises as Britons urged to check if they can switch | Personal Finance | Finance

0
20


The decision could mean an increase in overall energy costs for some who are not on a fixed rate tariff. Over the next six months, the price cap will increase by £96 to £1,138 for 11 million customers who are on their supplier’s default tariff.

Meanwhile, it will rise by £87 to £1,156 for four million prepayment meter customers.

It’s not just the price cap rise, which came into force on April 1, which is leading to Britons encountering increased energy bills.

A combination of recurring lockdowns and the new “normal” of working from home for many has led to a rise in average annual energy costs over the past year.

And, with working from home potentially becoming a permanent reality for many workers, it’s possible that some consumers will continue to face higher energy bills beyond the coronavirus crisis.

During the pandemic, domestic energy consumption has spiked by an average of 17 percent, according to new data from price comparison website Quotezone.co.uk.

The research has found the average annual energy bill increased from £688 in 2019 to £802 in 2020.

The findings are based on a sample of more than 50,000 energy comparisons during 2019 and 2020.

It suggests the recurrence of lockdowns, particularly during the winter, has taken its toll on households across the country.

Meanwhile, Quotezone.co.uk said 59 percent of people have reported their energy usage as “high” over the course of the pandemic.

Summer may be around the corner and the roadmap for unlocking the coronavirus restrictions beginning to take effect, but according to the money comparison experts, the hike in energy costs is set to continue well beyond the most recent lockdown.

It comes as the energy regulator announced the price cap will return to pre-pandemic levels.

While this may seek to protect consumers who haven’t switched energy provider, there are other options that could help Britons save even more each month.

Ofgem has recognised the importance of searching for fairer and less expensive options when it comes to energy bills, and there is a dedicated guide on switching available to read on the regulator’s official website.

Greg Wilson, Founder of energy comparison website Quotezone.co.uk, commented: “With working from home becoming an increasingly viable option, it comes as no surprise that energy usage has increased, resulting in less cash in consumer pockets.

“Although we’re hopefully entering the last phase of the pandemic now, which coupled with better weather means people should increasingly begin to venture outdoors, this does not necessarily mean that our energy bills will start to go down.

“Over 15 million homes will be affected by Ofgem’s recent announcement that price caps will rise from April, showing that the next six months will prove critical for many consumers who want to spend less and start saving.

“There are many ways to tackle increasing energy costs, but the most effective way is switching energy provider – a process which has never been easier.

“By choosing an Ofgem accredited comparison site such as ours, consumers can get an understanding of what’s on offer across a range of energy suppliers – instantly providing an overview of more competitive prices.

“Given the increase in energy consumption and the new hike to the energy price cap, there has never been a better time for consumers to start seeking better and fairer options.”

Quotezone.co.uk has shared some tips on how to help keep household bills down.

Switch provider

“According to Ofgem, consumers are able to save around £360 every year, meaning they are able to offset the increase in energy spend.

“Switching provider doesn’t just help save money, it also allows consumers to find suppliers with better customer service and seek out more environmentally-friendly suppliers.”

Thermostat control

“By turning the thermostat down by just one degree the average home can save around £60 a year, according to the Energy Saving Trust.

“Additionally, for a long-term solution, consumers should look to install heating controls to help prevent wasted energy use.

“Many of these thermostats can be controlled from phones, so customers can be in control of their energy usage no matter where they are.”

Make the home itself more efficient

“Depending upon the concern around the current bill, there are many ways to make sure the home is running optimally and efficiently.

“The best solution is to improve the insulation; however, this can be quite a costly process.

“A more immediate solution is to use energy efficient lightbulbs – a relatively inexpensive solution which helps to reduce costs over a long period of time.”

Claim tax relief

“Make sure to take advantage of tax relief which allows anyone working at home on a regular basis to claim relief on gas and electricity bills – as well as metered water and business phone calls.

“HMRC are offering relief worth £6 a week with virtually no additional hassle as workers will not need to provide receipts or factor in any complicated calculations.”





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here