15 million to see energy bills jump by £96 from today – how to save £280 NOW
MILLIONS of households will see their energy bills rise by up to £96 from today - but you might be able to save as much as £280 by switching.
Ofgem, the energy regulator, is upping the maximum price suppliers can charge for electricity and gas from £1,042 a year to £1,138.
As a result, the Big Six providers - British Gas, Scottish Power, EDF Energy, EOn, NPower and SSE - have all confirmed they'll be increasing prices.
The price cap hike was confirmed last month and affects around 11million households on standard variable tariffs.
Some 4million households on prepayment meters will also see bills rise by £87, from £1,069 to £1,156.
The increase will see a return to pre-pandemic levels and come into effect from today, April 1, 2021.
The best value fixed deal currently available on the market is £859 a year from Neo Energy.
Of course, it's worth bearing in mind that the actual price you pay on a fixed-rate tariff will depend on how much energy you use.
This is because these types of tariff set the cost you pay per kilowatt hour - the unit used to measure energy - usually for one year or more.
Ofgem sets the price cap twice a year to limit how much suppliers can charge customers on standard variable tariffs, depending on wholesale prices.
The watchdog says it saves these households between £75 and £100 a year, but customers can cut bills even further by switching deals.
Jonathan Brearley, chief executive of Ofgem, admitted last month that the price rise will be challenging for some customers who may be struggling with the impact of the pandemic.
It comes after the watchdog agreed to allow providers to charge households an extra £23.69 a year to help cover coronavirus related debts.
The Adjustment Allowance was introduced in 2020 as a one-off coronavirus measure so suppliers could support households through the pandemic.
Mr Brearley said: "As the UK still faces challenges around COVID-19, during this exceptional time I expect suppliers to set their prices competitively, treat all customers fairly and ensure that any household in financial distress is given access to the support they need."
Alistair Cromwell, acting chief executive of Citizens Advice, also said the price hikes will come as a "heavy blow" to some households.
Around 3.7million households are living in fuel poverty, according to The End Fuel Poverty Coalition, with a further 2.1million behind on their bills.
It's not just energy that's getting more expensive this week - we round up eight bills that are going up in price.
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