BILL BLOW
Exact date energy bills set to rise next month for millions of households
Plus we share how to get extra help with your bills this winter
ENERGY bills will increase for millions of households next month.
The new energy price cap will come into effect on October 1, meaning the average household paying by direct debit of duel fuel will see their bills increase by £149 annually or £12 a month.
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The cap will rise from the current rate of £1,568 to £1,717.
But it is important to remember that the exact amount you pay could be higher or lower depending on usage and the cap is reviewed every three months.
The cap just limits the amount of energy suppliers can charge for each unit of gas and electricity.
The £1,717 figure is just based on Ofgem, who sets the price cap, thinks the average household will use.
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The energy regulator said the price a supplier can charge for gas will rise from 5.48p per kWh today, to 6.24p from October 1.
The price of electricity will rise from 22.36p per kWh to 24.50p.
Standing charges, which cover things like maintaining the network and operational costs, will rise to 31.66p from 31.41p a day for gas and from 60.12p to 60.99p for electricity.
Meanwhile, the four million people who use pre-payment meters will see their annual bill rise from £1,522 to £1,669.
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Despite the rise, average bills remain considerably lower than during the peak of the energy crisis, which was fuelled by Russia's invasion of Ukraine in February 2022.
The war caused a spike in an already turbulent wholesale energy market, driving up costs for suppliers and customers.
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The new cap is £117 - 6% - cheaper compared to the same period last year when it stood at £1,834.
Before the energy price shock a standard annual bill was £1,084.
However, a decision by Rachel Reeves to limit the number of elderly who could get the £300 Winter Fuel Allowance has left many worried about the upcoming increase.
The cuts will happen this year and only those on Pension Credit and other means tested benefits will get the money.
How can I calculate my bill?
You can work out what you will pay under the new price cap by finding out the unit rates for your gas and electricity and the standing charge for each fuel type.
Unit rates and standing charges vary depending on where you live, but you can find what yours is on the Government's website.
The standing charge is a daily charge paid 365 days a year, even if you don't use any gas or electricity.
Once you have these figures, you will need to note down your own annual energy usage based off a previous bill.
With these details, you can work out your gas and electricity costs separately.
Then multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type. This will give you your usage costs.
You'll then need to multiply each standing charge by 365, for each day of the year, and add this figure to the totals for your usage.
Divide this figure by 12 and that will give you how much you will pay each month from October 1.
What other support is available?
If you are concerned about paying you energy bills this winter, it may be worth ringing your local council to see if you could be available for the Household Support Fund (HSF).
The amount varies and the local council will determine how the money is sent.
The fund is typically distributed in relation to you financial situation and the benefits you are entitled to.
It's been set up to help families who are struggling with the cost of living.
You also may get Cold Weather Payments if you’re getting certain benefits.
You will get a payment if the average temperature in your area is recorded as, or forecast to be, zero degrees celsius or below over 7 consecutive days.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity works out what you could get.
Entitledto's determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
The amount is £25 for each 7 day period of very cold weather between 1 November 2024 and 31 March 2025.
The scheme is currently closed, but it is worth keeping mind when the winter approaches.
You may be entitled to a £150 discount off your electricity bill as the days get colder over winter.
The warm home scheme is a one off payment and applications open again in October 2024.
If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.
You’ll usually get the discount automatically if you’re eligible. You only need to apply if you’re on a low income in Scotland - contact your energy supplier to apply.
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The £300 winter fuel allowance is still running but only for those aged of 66 who are on Pension Credit and other means tested benefits will get the money.
The sun recently published an article on to check your eligibility for Pension Credit, which you can read here.
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