Tips to Save on Energy Bills

The energy price cap set by Ofgem is set to increase by £149, raising the annual cost for a typical household in England, Scotland, and Wales from £1,568 to £1,717. This cap establishes the maximum price energy suppliers can charge consumers per kilowatt hour (kWh) of energy used, but it does not limit total bills, which vary based on individual consumption. Ofgem's chief executive, Jonathan Brearley, attributed the rise to increasing international gas prices, which directly affect household energy costs. In light of the price cap increase, experts are advising consumers to explore options to mitigate their energy bills. Brearley encourages households to "shop around" for better energy tariff deals, while Martin Lewis, founder of MoneySavingExpert.com, emphasizes the potential savings from switching suppliers or opting for fixed-price energy tariffs. Emily Seymour, energy editor at Which?, cautions that there is no universal solution for energy deals, as the best option depends on individual circumstances. She recommends that consumers compare potential monthly payments under fixed deals against the variable tariff capped by Ofgem to determine the most cost-effective choice. Additionally, energy companies are mandated to collaborate with customers to establish affordable payment plans, offering more flexibility in how and when payments are made. As households brace for higher energy costs, these strategies may provide some relief amid the rising expenses.