URGENT UPDATE: Starting January 2024, the energy price cap will rise by 0.2%, increasing the average annual bill from £1,755 to £1,758 for households paying by direct debit. This adjustment, confirmed by industry regulator Ofgem, marks a crucial change that could impact your finances significantly.
With rising electricity costs and standing charges, households that consume more electricity will feel this increase more acutely. Although wholesale gas prices have decreased, the uptick in electricity charges means that those on a price-capped tariff should prepare for a higher bill starting in January.
If you currently rely on a capped tariff, your costs will increase slightly, but there’s a silver lining. Suppliers are once again offering competitive fixed-rate deals that could save you up to £200 per year compared to the new cap. This is an opportune moment to explore your options and potentially lock in a more affordable rate. Notably, suppliers like Eon, EDF, and Outfox the Market are providing fixed tariffs that undercut the cap, ensuring you have clarity on your monthly payments without the uncertainty of Ofgem’s quarterly announcements.
Importantly, switching to a fixed tariff is a seamless process, and your energy supply will remain uninterrupted during the transition. For those hesitant about locking in rates, analysts suggest that the cap may rise again in April 2024, making early action a wise choice to safeguard against future increases.
If fixed tariffs aren’t appealing, consider tracker deals that adjust with wholesale prices but guarantee to remain below the cap. This option provides flexibility while still offering some savings.
For those struggling with rising bills, immediate assistance is available. Reach out to your energy supplier or organizations like National Energy Action and Marches Energy Agency for support. Additionally, housing customers can access tailored help through the free energy advice service offered in partnership with the Cadent Foundation.
As we approach the new year, it’s crucial to stay informed about your energy costs. For up-to-date comparisons and insights, visit sites like GoCompare and Uswitch. Don’t delay; take control of your energy expenses now before the new rates take effect. The time to act is NOW!
