Energy Price Cap: How will the rise in bills affect you? How can you save money on your bills? Experts explain

Regulator Ofgem announced that the yearly energy price cap will now be increased by 54 per cent - so how will consumers be affected and how can you save money on your bills?

Energy bills are set to rise by nearly £700 a year for millions of people, following the news that the price cap will rise by more than 50 per cent.

The annual cap will now be set at £1,971 from April, which is an increase of £693 from the previous price of £1,277.

Hide Ad
Hide Ad

In response, experts have come forward with tips and suggestions for how to save money on your bills to offset the price cap increase.

Energy bills are set to increase. (Pic credit: Steve Parsons / PA Images)Energy bills are set to increase. (Pic credit: Steve Parsons / PA Images)
Energy bills are set to increase. (Pic credit: Steve Parsons / PA Images)

Utility Bidder CEO, Chris Shaw, said: “Ofgem has announced a 54 per cent increase in the energy price cap, boosting the maximum amount that customers can be charged. This means that your average annual bill could reach as much as £1,917 for those on a tariff.

“For prepayment meters, this could reach as high as £2,017. Obviously, the more gas and electricity you use, the higher the bill - which is particularly concerning for large households and businesses.

“Both domestic and business customers on a standard variable tariff, or those who had a fixed tariff come to an end because their supplier went bust, will be affected by the cap. There will be a separate cap for households and businesses on prepayment meters.

Hide Ad
Hide Ad

“At a time when Brits are already struggling with price rises on everything from interest rates to food, thousands of households and businesses will be panicking at this news. The price cap is the second rise in six months, affecting around 22 million people - coming into play from 1st of April.

“We know that the reason for this price hike being passed down to consumers is down to the volatility in the energy market, as gas prices began to surge at the end of last year. However, we anticipate further increases later down the line, due to the current situation in Ukraine.

“Therefore, it’s really important that consumers stay vigilant to their energy consumption, making changes to help them save money in the long run.”

How can I save money on energy bills?

Experts from Utility Bidder have outlined tips for how consumers can save money on bills.

Hide Ad
Hide Ad

1. People use the most energy in the evenings - so make a conscious effort to turn off all appliances at the wall after you have finished cooking, and same with appliances like laptops and phone chargers.

2. If an item such as a dishwasher or washing machine breaks, make sure the replacement is energy efficient. An A+++ appliance will save you money long term.

3. Wash your clothes at a lower temperature - 30 degrees is more than enough to clean the majority of your clothes.

4. Draught-proof your home by sealing cracks in skirting boards, letter boxes and chimneys.

Hide Ad
Hide Ad

5. If you are on a standard variable tariff, make sure you compare energy suppliers. Whilst all suppliers are affected by the price cap, you may be able to get a better deal somewhere else.

6. Businesses can carry out an energy audit, where an expert can identify the areas of your business zapping the most energy - from lighting to standby equipment.

Related topics:

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.