Energy prices have been at the highest of most individuals’s minds for the past yr, bills have skyrocketed and the fee of living has hit a 40-year high. So it’s actually a relief to listen to concerning the lowering of the energy price limit.
Yesterday, energy regulator Ofgem announced that the value cap could be cut by £999 from April, with many hoping these lower costs might be the sunshine at the top of the tunnel after the turmoil of previous months.
The current cap on energy prices is £4,379 a yr, dropping to £3,280 for the typical household from April 1st. That’s a 23% discount, music to the nation’s ears. This reflects the drop in recent wholesale prices.
if the energy price limit is falling – why are our bills rising?
Well, the present Energy Price Guarantee (EPG) set by the federal government keeps the household cap at £2,100 a yr. In addition, the top of the £400 energy support payment, payable in six installments of £66 and £67, will end in April.
So, once this government support ends immediately, households could have to pay a median of £500 more a yr because of this of this reduction, despite the lowering of the value cap. This means customers might be paying around 20% more on their bills as the federal government’s EPG becomes less generous.
Danni Hewson, head of economic evaluation at AJ Bell, comments:
“The irony won’t be missed by many who sooner or later energy prices will finally fall from their uncomfortable peak, with hundreds of thousands of UK households paying more. People are still protected to some extent by the federal government’s energy guarantee, but from April it can be much less generous.
“To add insult to injury, the welcome discount that used to look on people’s accounts every month can also be ending at the identical time, and brought together, many families are hoping for a really mild spring.”
What if I can not pay my energy bills?
If you might be currently having financial difficulties and are unable to pay your bills or think you won’t have the ability to pay them after the top of the EPG, it will be important to hunt help as soon as possible.
First, it is vital to be direct and transparent together with your energy provider. They will have the ability to offer help and guidance and that is the very best place to begin. Charities corresponding to Step change AND Turn2Us help people across the UK by providing free, impartial advice in addition to direct help.
Citizens Advice can also be a fantastic tool to provide you suggestions and advice on every thing from energy bills to council tax. test it out Here.
