More than seven million households still on a standard energy tariff have been urged to send in meter readings to avoid paying higher prices.
The energy price cap will rise by two per cent from Wednesday for a typical household in England, Scotland and Wales, just as cooler temperatures cause many to switch on their central heating.
This means that the energy bill for the average household paying by direct debit for gas and electricity will rise from the current £1,720 to £1,755 per year.
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The StepChange debt charity said the £35 per year increase “seems like a small amount” but warned that household debt is gradually increasing.
Simon Trevethick, head of communications at StepChange, said: “Not only will people find they are having to switch on their heating now as the weather turns colder, but bills are also set to go up this month, which is another blow to household finances.
“For anyone who is struggling or worried about energy bills, there is support available out there – contact your supplier (or) check to see if you’re eligible for any grants.
Which? energy editor Emily Seymour said: “As we head into the colder weather, many households will be concerned that the energy price cap is going up this week.
The rise to the energy price cap comes just as the weather starts to turn cold (Photo: Chris Ratcliffe/Bloomberg via Getty)
“There are several deals on the market for lower than the price cap, so now is a good time to shop around if you’re looking to fix.
“As a rule of thumb, we’d recommend looking for deals cheaper than the current price cap, not longer than 12 months and without significant exit fees.
“If you’re on a variable tariff, make sure to submit a meter reading to ensure you pay the cheaper rates for any energy used before the new price cap takes effect.”
Around 2.7 million more low-income households, including 900,000 families with children, are eligible for the £150 Warm Home Discount this winter, after the government confirmed it would remove the “hard to heat” eligibility criteria.
The government has said the change brings the total number of homes getting the discount to an estimated 6.1 million.
The energy price cap was introduced by the government in January 2019 and sets a maximum price that energy suppliers can charge consumers in England, Scotland and Wales for each kilowatt hour (kWh) of energy they use.
It does not limit total bills because householders still pay for the amount of energy they consume.
With PA
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