OFGEM has warned UK households that the October energy price cap could rise even further with the new cap expected to be “in the region of £2,800”.
Chief executive Jonathan Brearley told MPs their constituents can expect further rises later this year.
The prediction comes after households were hit by a huge leap of 54% in April, an increase of £693 a year to £1,971 for those on default tariffs paying by direct debit for the average household.
Mr Brearley said future scenarios could include energy prices going even higher if Russia further disrupts gas supplies.
How you can reduce your energy bills
Andy Kerr, Founder at BOXT, has commented on the regulator’s new move:
“People up and down the country are feeling the squeeze of the rapidly increasing cost of living, with energy bills being at the forefront of this crisis due to the price cap reaching an all-time high.
“While Ofgem said that a more frequent price cap review would mean when prices fall from the current record highs, customers would see the benefits much sooner, it also means that prices would reflect the most up to date and accurate energy prices.
“Therefore, when prices increase to record highs, with energy prices predicted to continue to rise over the coming months, customers will feel the effects much sooner and will have less time to prepare for increasing bills.”
Here are some of their top tips for cutting energy bills.
Turn your thermostat down by one degree
You could save up to £80 a year by turning the heating down by just one degree. An estimated 17 million households in the UK could save as much as £1.4 billion by turning their thermostats down by just 1°C from the current average temperature of 20°C. Making a small change to the temperature in your home can make a big difference.
Use a smart meter
Smart meters can help you better understand your energy usage via the in-home display that comes with your smart meter. With more information on your day-to-day energy use, you can see when you’re using the most energy, and identify ways to cut back and in turn save money.
Keep the boiler on, even while you're away
To prevent frozen pipes, which can cause hundreds of pounds of damage, the Energy Saving Trust recommends you leave the heating on to some degree during winter, even if you're not there. Check your home insurance policy before you go away. The rule of thumb is to keep your heating at a minimum 12 degrees, rather than switching it off completely.
Use insulation to make sure no heat is being wasted
In addition to wall, roof and floor insulation keeping the heat in your home, insulating your water tank, pipes and radiators is a quick and easy way to improve efficiency; saving energy and therefore money. With options such as a hot water cylinder jacket, which you can fit yourself and only costs around £15, you can quickly start making improvements.
Check you have the best boiler type for your home
The best boiler for you will depend on your lifestyle, the size of your home and the number of people living there. A standard boiler may be a better option for larger households who use lots of water, however, combi boilers can be more efficient as they don’t leave water sitting in a tank where it can lose heat.
