Households are experiencing higher energy costs, but there are strategies to reduce expenses. The current Ofgem price cap stands at £1,755 annually for the average household paying via direct debit, with an upcoming increase to £1,758 in January.
The impending price adjustment coincides with the colder months when heating usage typically rises. Ofgem recommends exploring fixed energy tariffs to save money, as they lock in rates for a specified period.
According to a comparison table by moneysavingexpert.com, the cheapest fixed tariff available is more than 10% lower than the current price cap. Additionally, tracker tariffs offer variable rates based on wholesale energy prices, adjusting as the market fluctuates.
During the winter season, additional financial support is available, especially for the elderly or low-income individuals. Eligible households may receive a £150 discount on electricity bills through the Warm Home Discount scheme, applied directly to the energy account or as a voucher for prepayment customers.
Winter Fuel Payments, worth up to £300, are disbursed to pensioners born before September 22, 1959. Cold Weather Payments of £25 are triggered when temperatures remain at or below 0°C for seven consecutive days.
Simple energy-saving practices can also contribute to bill reduction. For instance, turning off appliances on standby mode could save £45 annually, while careful kettle usage can cut costs by £30. Adjusting the thermostat down by just one degree may save around £90 without compromising comfort.
In case of financial difficulties with energy bills, contacting the supplier promptly is advisable. Suppliers may offer payment plans, breaks, or manageable debt repayment options. Vulnerable customers can enroll in the Priority Services Register for enhanced support during emergencies.
Addressing draughts in the home before winter sets in is crucial for heat retention. Affordable solutions like draught excluders under doors, costing less than £10, can prevent cold air infiltration. Draught-proofing measures can save up to £85 yearly, and low-income households may qualify for assistance with boiler upgrades or insulation through the Energy Company Obligation (ECO) scheme.