Energy price cap changes
Finance Expert Laura Pomfret
- Published
Ofgem announced its cap this morning, meaning lots of households may see their costs go up by over £200 a year. Laura joined us in the studio to explain if now is a good time to try and switch your energy tariff, or if it was better to switch. Plus, with costs expected to continue to rise because of the Iran War, she shared some cost-cutting tactics she uses, to help keep those bills at bay.
Take a meter reading. Do this before 1 July so your supplier bills your current usage at the lower rate. Smart meters usually send readings automatically, but it's still worth checking.
If you pay by direct debit, check your energy credit balance. May is a really good time to do this because winter has finished. Experts say you should keep around 1.5 months' worth of credit on your account. So if your direct debit is £150 per month, keep around £225 in credit.
This is to help balance out the costlier winter months. Anything above that is usually safe to be reclaimed. You can usually do this via your online account or by calling your suppliers customer service line.
Check your boiler is working efficiently and serviced. An efficient boiler should significantly reduce your energy consumption. Also, servicing your boiler in the summer can be cheaper as you may be able to get off-peak rates from engineers who aren't as busy.
Check if you qualify for support schemes. This could help reduce bills long term. So things like the ECO4 insulation grants or local council energy efficiency funding.
And if you are concerned that you won't be able to pay your energy bills talk to your supplier. They have to help you come to a solution. There's lots of advice on this available from organisations like Citizens Advice.
