The electricity regulation body O bites may raise energy bills for millions of households, as part of its new price cap coming into effect in April. This regulation aims to protect the utilities from rising costs due to increased gas prices in Europe, which has led to a reduction in stored gas. The price for electricity is expected to increase from 24.86p to 27.03p per kWh, affecting both standard variable tariffs (SVTs) and fixed deals, though most baseline bill increases are likely to be lower since no vehicles were sold at the time of the cap. The cap is expected to last until September 30, 2025.
In March, energy tests will be conducted to check domestic water and wastewater bills, which are set to rise by £123 per year. Broadband prices are also expected to rise by 6.4% across the UK due to mid-contract price increases. Before the energy cost shock, household bills were set at £1,084. The government notes that approximately 4 million customers have moved to fixed tariffs since its last announcement, and most of these see little to no change, as the cap has already been in place.
Following the new cap, energy use has decreased in winter due to supply chain disruptions. Treating summer as the peak, the household energy tests will start in April. The Combined-cycle price cap is expected to be around £700. The energy crisis was influenced by Russia’s invasion of Ukraine in February 2022, which caused a surge in wholesale energy costs. Gas prices have risen across Europe due to slacks in storage levels.
The next price cap for July 1 until September 30 is set, following May’s announcement. The British Gas Energy Trust ( savage energy) is considering a future BAT ban, with incentives available for energy suppliers by contract, even with peak demand.
Support measures for households facing energy struggles include the Cold Weather Payment (CWP), which provides £25 for every seven-day period of cold weather. The government also offers energy grants to those in debt, such as the Individuals Family Fund and the British Gas Energy Trust. LOCAL councils are raising the Household Support Fund for soft financial support.
Energy bill help options include paying for a prepayment to cover existing debts and supervising payment plans. British Gas offers specific grants, while EDF, E.ON, Octopus Energy, and Scottish Power also provide grants. Using an energy firm’s services can help adjust bill levels. However, sign-ups to Priority Services Register are crucial for vulnerable households like the elderly or ill, which offers benefits such as caution of blackouts, safety checks, and additional support.
