Millions of UK households are facing further energy price increases now that the energy price cap increase is in effect. But analysts are also predicting another sharp rise of 32% in October.
You may already know how your bills are changing as of 1 April, but will undoubtedly be worried about another steep increase in October. If you want to see how your energy bills could be affected by a second rise later this year, use our calculator below.
The price cap, set by energy regulator Ofgem, is reviewed twice a year and changes are implemented in April and October. It limits how much energy suppliers can charge their customers per kWh of gas and electricity. With the current energy crisis seeing wholesale gas prices skyrocket, the price cap has increased by 54%.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: ‘The global energy price spike started when the economy came back to life last year. As demand for gas increased, we faced lower stock levels and supply problems. We import around 50% of gas, so had to buy it on the international market – where booming demand overwhelmed supply. The wholesale price of gas in January was almost four times higher than in early 2021. We also make a third of our electricity from gas, so it pushed those prices up too.’
The price cap doesn’t apply if you are on a fixed rate tariff, or a standard variable green tariff (which Ofgem has excluded from the cap). But the cap will apply to you if you are on a default energy tariff. Check your last energy bill or speak to your supplier if you are unsure what tariff you are on.
How will energy price increases affect my monthly bills?
So how much will your energy bill rise if the price cap is increased by another 29% in October? Use our calculator to find out. Simply input how much you typically pay per month on your current tariff and we’ll show you how your energy bills could be affected.
How can I reduce my energy bills?
There are usually two main ways to reduce your energy bills – finding a better deal to pay less for the energy you do use, or to use less energy. With the current energy crisis, it is difficult to find cheap deals, so the best way to keep gas and electricity bills low is to focus on reducing your energy usage.
Turning your thermostat down a single degree, sealing up any draughts, and swapping older light bulbs for energy-saving alternatives are some easy ways to reduce your energy usage.
The post Energy price increases: work out how much your gas and electricity will cost you appeared first on Ideal Home.