How to Reduce Energy Bills with Simple Tips

The average annual energy bill for gas and electricity in Great Britain will increase to £1,717, marking a £149 rise from the previous cap of £1,568. This adjustment, effective from October, is part of Ofgem's quarterly review of the price cap, which limits how much energy suppliers can charge their 29 million household customers. The new cap is particularly significant for standard credit customers, who will face higher charges compared to those paying by direct debit or prepayment meters. Standing charges, which are unavoidable fees for being connected to the energy supply, have surged dramatically over the past five years, now costing approximately £338 annually. Ofgem is currently considering changes to these charges, which could potentially reduce costs by £20 to £100 a year. However, shifting some costs to unit prices may adversely affect low-income households, raising their bills by 10%. Pensioners are facing additional financial strain as they lose cost-of-living payments and the winter fuel payment becomes means-tested. While some energy providers offer fixed-rate deals below the new cap, many households will still feel the impact of rising energy costs. Ofgem emphasizes that the price cap regulates unit rates and standing charges, not the total energy bill. Experts suggest practical measures to mitigate rising costs, such as using radiator foil and adjusting thermostats. These small changes can lead to significant savings, highlighting the importance of energy efficiency in managing household expenses during the winter months.