MILLIONS of households will see their energy bills rise tomorrow.
The average household will see their bills increase to 2,500 a year – up from £1,971.
Liz Truss froze energy bills for two years in a bumper cost of living support package first announced on September 8.
The new Energy Price Guarantee (EPG) will save the average household £1,000 over the next year.
The EPG puts a cap on the wholesale cost of domestic gas and electricity for those on the standard variable tariff.
The cap should mean that the average household pays no more than £2,500 a year.
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But the cap only limits the amount firms can charge customers for each unit of energy.
So if you use more energy than the average household – expect to pay more than £2,500 a year.
It is also confirmed that thousands of customers locked into expensive fixed tariffs will benefit from the EPG – after energy suppliers have said customers can move on the standard variable tariff without fee.
But customers on a fixed deal that has a lower unit rate for gas and electricity than that offered by the EPG, will still pay cheaper rates.
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The average amount you'll pay will also depend on the way in which you pay your bills.
The £2,500 figure relates to households that pay their energy bills by direct debit – this is usually the cheapest method.
Those who do not pay their bill by direct debit and those on prepayment meters will pay more.
A typical household that doesn't pay their energy bill by direct debit will spend £2,740 on average over the next year.
A household with average usage on a prepayment meter will pay roughly £2,559 over the next 12.
The variation in costs relate to the different unit rates and standing charges that make up these three bill types.
Households can use an online calculator like the one offered by MoneySavingExpert.com to find out how much you'll pay from Saturday.
What's the average costs for those who pay by direct debit?
From October, a typical household will pay the unit rates and standing charges below but check with your energy supplier as the figures may slightly differ.
A typical household will pay £2,500 a year from October if they pay the following rates:
- 10.33p per killowatt hour (p/kWh) for gas
- 34.04p/kWh for electricity
- A standing charge of 28.49p per day for gas
- A standing charge of 46.36p per day for electricity
What's the average costs for those who don't pay by direct debit?
A typical household that doesn't pay their bills by direct debit will see costs rise to £2,740 from October 1, based off the following average rates:
- 11.12p per killowatt hour (p/kWh) for gas
- 36.80p/kWh for electricity
- A standing charge of 33.54p per day for gas
- A standing charge of 52.40p per day for electricity
What's the average costs for those on prepayment meters?
The average household on a prepayment meter will see their bills rise from £2,017 to £2,559 in October, based off the following average charges:
- 10.63p per killowatt hour (p/kWh) for gas
- 33.08p/kWh for electricity
- A standing charge of 37.51p per day for gas
- A standing charge of 51.41p per day for electricity
What energy bill help is coming?
From October the first, all households will start to receive a £400 energy bill discount.
The payment will be dished out by your energy supplier and will be split across six discounts between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
In November, a £300 one-off "Pensioner Cost of Living Payment" will be paid out to eight million households.
It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.
Millions of households are in line to get the £150 Warm Home Discount between December and March 2023.
Check if you can get an energy grant
There are plenty of energy grants and schemes open to help you out if you're struggling.
British Gas has recently confirmed that it'll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
The British Gas Energy Trust has previously paid struggling households up to £1,500 – and you don't need to be a British Gas customer to apply for this help.
Ask your supplier what's on offer and how to apply, or check here:
- Bulb energy fund
- EDF's energy customer support fund
- E.on's energy fund
- Octopus Energy Octo Assist fund
- Ovo's debt and energy assistance
- Scottish Power's hardship fund
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You can get free debt advice
If you're in debt there are plenty of services you can take advantage of and they offer free advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
- Money Helper – 0800 138 7777
- Citizens Advice – 0808 800 9060
- StepChange – 0800 138 1111
- National Debtline – 0808 808 4000
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