The new price cap announced by Ofgem on the 23rd of August comes into effect for energy consumed from the 1st of October.
With the wholesale cost of energy having risen, the regulator increased the maximum that energy suppliers can charge their customers on default tariffs by around 10%. This is equivalent to the average UK dual-fuel household paying £1,717 a year for its energy, and it equates to around £12 more per month compared to the previous price cap.
The higher price cap comes as temperatures are dropping in the UK, meaning that more and more households will be turning their heating on. Moneysaving expert Martin Lewis recommends looking at possibly fixing your prices with an energy provider. This can of course be a danger in itself, because you could end up paying more if wholesale prices go down, but Lewis offers this advice on his website:
“If you find a fix for at least 2% less than the new (Oct to Dec) Price Cap (or up to 8% more than the current Cap), it’s predicted you’ll save over the year compared with staying on the Price Cap.”
While the price cap is often expressed as a figure for the average UK home, your energy bills are of course ultimately determined by how much gas and electricity you use. Xgas can help you reduce your gas usage by providing a boiler installation in Wrexham and the surrounding area to replace an old inefficient boiler. Get in touch to also learn about financing options.
