Seven ways to save money on energy bills before new price cap change in April
dailyrecord.co.ukThe final forecast from energy consultancy Cornwall Insight suggests that people across Britain are set to see the cost of each unit of electricity and gas they use soar from the beginning of April.The Ofgem price cap on energy bills, which regulates what energy suppliers are able to charge, but not necessarily what households pay, will fall by around £1,000 to £3,295.
However, due to the way the UK Government’s energy support works, households will be left paying an extra 20 per cent and will also not get monthly payments of £66 or £67 towards their bills as the £400 Energy Bills Support Scheme ends in March.The amount that people pay for their energy is currently regulated by the UK Government’s £2,500 energy price guarantee.
This limits the amount that domestic customers pay to 34p per kilowatt hour (kWh) for electricity and 10.3p per kWh for gas.This limit is set to become less generous from the beginning of April, rising to an average bill of £3,000.But energy suppliers are allowed to charge more, with the Government picking up the difference in each household’s bill.
How much a supplier can charge is decided by a separate measure, the Ofgem price cap.The price cap is reviewed once every three months and is currently set at £4,279 per year for the average household, meaning that the UK Government has probably been paying about £1,779 per year to energy suppliers on average for every household they serve between September and March.But the predicted fall of the Ofgem price cap to £3,295, and the rise of the energy price guarantee level to £3,000 means the UK Government will be paying just £295 per household per year from April to June.Cornwall Insight said that it expects the price cap to fall further, to £2,153 in
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