With fuel bills rising for most on the 1st October we hope our guide to reducing your consumption, understanding the price cap and the energy rebate is helpful for you.
What is the price cap?
The Price Cap is an amount set by OFGEM (the energy regulators) that energy suppliers can charge for electricity and gas. It was reviewed every 6 months and is now reviewed every 3 months. In October they announced the price cap was going up by 80%. The price cap applies to everyone on a prepayment meter, or who is on a standard (not fixed) tariff on a credit meter. It limits the amount you pay per unit of energy and per day (standing charge) but your usage will always determine your final bill.
What does the government
On the 8th September the government announced the 'Energy Price Guarantee' that comes into effect on the 1st October and lasts for two years, stopping the 80% price rise happening in full.
It will limit the 'average' household bill per year to £2500 rather than the £3549 it would have been but again, this will vary depending on your usage. The government are paying for this support and it will not need to be paid back.
What is the £400 energy rebate?
This is a £400 discount over your bills that you do not have to pay back. Exactly how you receive it will depend on your supplier but you will get £66 in October and November and £67 for December-March. If you have a prepayment meter you will likely get this as vouchers and if you have a credit meter either as a reduction on your normal direct debit or a payment into your bank account. If you pay when you get your bill it should show as a credit on this, do contact your supplier for further information.
How can I save money on my bills?
-Paying by Direct Debit normally reduces your bills, do bear in the mind if you currently have a prepayment meter you will need a credit check before this will be possible.
-Draught proof your property with draft excluders, window liners if you have single glazing and lining your chimney/letterbox.
-Minimising use of your tumble dryer as much as possible
-Turning off items on standby
-Find more energy saving tips at https://energysavingtrust.org.uk/hub/quick-tips-to-save-energy/