With the energy price cap rising by record levels in April, millions of people may be dreading receiving their new energy bills this month.
After energy regulator Ofgem increased its price cap by a staggering 54%, rising by a record amount of £693, many have been left worrying about how they will afford the new prices. This comes as the UK is experiencing the worst cost of living crisis since the 1980s, with inflation threatening to peak at 9%
The cap, which places a limit on how much a supplier can charge for each unit of gas and electricity you use, rose from £1,277 to £1,971. The hike is even higher for prepayment customers, jumping £708 from £1,309 to £2,017, the Manchester Evening News reports .
Here’s what you can expect from some of the main energy providers when it comes to the new prices, including Scottish Power, British Gas, Octopus and EDF.
It’s worth bearing in mind that the figures below are an average idea of how much prices are set to increase, and rates could be higher for individuals depending on their energy usage and location.
British Gas
British Gas has said that credit customers can expect to pay £693 more on their yearly energy bill (excluding VAT), which works out at £58 every month.
Prepayment customers will see an average increase of £59 per month, or £708 a year. These prices will vary depending on your energy use and how you pay your bill.
If you’re a British Gas customer, you can expect a price increase if you’re on one of the following variable tariffs:
Safeguard Credit
Safeguard PAYG v2
Safeguard PAYG
Flexi PAYG Mar 2023
Standard PAYG
Standard Credit
Standard Variable
Welcome to British Gas
The Peoples Tariff
Welcome Together
Standard Variable HM
The provider is recommending that direct debit customers increase their amount by as much as they can to keep on top of the higher costs. This will make it more manageable when your direct debit is next reviewed, say British Gas, which occurs twice a year.
Support for British Gas customers
British Gas offers payment plans for customers who are struggling to keep up with their bills due to difficult circumstances. They fund the independently run charity The British Gas Energy Trust, which provides help by advising on fuel debt, directing customers who are struggling to government grants, or even allowing grants for debt relief under certain circumstances.
British Gas also said they invested £2 million into funding grants to help vulnerable customers heat their homes in December 2021, which they say they have now added a further £2 million to.
You can still apply to this fund, which British Gas has said will remain open until all money has been distributed to customers, via the British Gas Energy Trust website.
If you’re looking to switch energy providers, British Gas has confirmed that it is accepting new customers after it stepped in for some of the energy providers that have recently stopped trading.
Octopus
Octopus has said they will contact all customers who are set to be affected by the cap increase, saying that those who are on the Flexible Octopus tariff will see their gas and electricity prices rise.
If you are on the Flexible Octopus tariff, your unit rates are not fixed and can fluctuate depending on the changing costs of energy. Octopus are set to email each customer impacted by the price hike to offer them a personal projection of what this will mean for their energy costs.
Customers also have the option to lock in their prices for 12 months by switching to a fixed tariff at any time.
Octopus Energy is currently the only energy provider to offer its customers tariffs below the energy price cap. Every Octopus customer, existing or new, who is on a standard variable tariff will get £2 off the price cap a year, while the tariff for loyal customers will be set £50 below the new cap under the company’s new temporary Loyal Octopus support scheme.
Support for Octopus customers
The Octopus Assist fund, which provides grants ranging from £50 to £500, has been doubled to £5 million to help as many struggling households as possible. If you’re having trouble finding the money to pay your bills, you can let Octopus know through their online financial support tool.
EDF
EDF customers can also expect to see an average annual increase of £693, with standard variable tariff prices rising to approximately £1,971 a year. EDF will be contacting affected customers in the coming weeks to explain what this will mean for their household bills.
Prepayment customers with EDF can also expect to see their tariff rise to the new price cap limit. Those on fixed tariffs won’t see their prices change until after their current tariff ends.
Support for EDF customers
EDF is offering customers a smart meter and Energy Hub access for free to help customers better understand how much energy they use.
The Energy Hub is designed to give customers a personalised view of their energy use, along with tips to help save money and reduce their carbon footprint, and can be accessed via your online account or the EDF mobile app.
EDF has suggested switching to direct debit payments where possible, as customers can pay less for each unit of energy they use. The provider has also said they can agree on smaller debt repayments when customers switch to a smart pay as you go meter.
Vulnerable customers could be eligible for an EDF Customer Support Fund grant through its Priority Services Register, which offers extra support and advice to those who need it.
Scottish Power
Scottish Power has said they have contacted customers with full details of their new prices, as those on a standard (variable) tariff, pay as you go tariff or any default tariff can expect to see their bills increase in line with the new energy price cap.
Prices will remain the same for customers on a fixed price tariff until the duration of their tariff comes to an end, at which point they will be moved to Scottish Power's default tariff, unless they choose another fixed price tariff or move to another supplier.
Support for Scottish Power customers
The provider is advising customers to check that they are on the tariff and payment plan that best suits their circumstances, and is offering additional help to struggling customers.
They can offer a repayment plan for those finding it difficult to keep up with their rising bills, which lets you pay any arrears over a period of time with a regular agreed amount based on what you're able to afford.
For those on a lower income who are struggling to pay their bills, the Scottish Power Hardship Fund is also available which can clear all or part of your debt balance for those who are eligible. You can apply by calling the National Debtline or any other debt advice agency, who can help you to fill in your application.
Scottish Power also offers help through its Priority Services Register, which provides a range of services to help you manage your energy account at no additional charge.
Shell
You may already have received a letter or email from Shell to inform you of the price changes if you're on a flexible tariff. If you’re on a fixed energy tariff, these price changes won’t affect you until your fixed tariff ends.
Currently Shell Energy's default tariff is known as Flexible 6. But from April 1 this will be adjusted and renamed Flexible 7. Under the new tariff electricity go from 20.871p to 29.239p per kWh with a 37.92p standing charge (up 13p a day). Gas will go from 4.055p to 7.344p per kWH, with the gas standing charge rising from 26.11p to 27.22p.
Customers in the average household can expect to pay £693 more on their annual energy bill, which as with other providers will work out at £58 per month. Prepayment customers will see an increase of £708 per year, or £59 per month.
Due to high wholesale costs, Shell Energy have temporarily removed their fixed tariffs. When wholesale prices stabilise, the provider says they will go back to offering fixed tariffs online with 100% renewable electricity as standard.
Support for Shell customers
Shell says they have taken on more than half a million customers who were affected by the collapse of 29 different UK energy suppliers. They have created an online hub for customers to help anyone who is struggling to pay their bills, with details of government schemes, debt support and energy-saving advice.
Shell Energy urge customers who are struggling to pay their bill to get in touch online via the support hub, or to call on 0330 094 7605 for questions related to the price cap or on 0330 094 5800 for anything else.
SSE
SSE is increasing prices in line with the price cap increase on both its standard variable tariff and pay as you go tariffs. The company has already sent out letters and emails to customers whose tariffs will be impacted, which includes new energy prices, along with a personalised projection of future bills based on exact or estimated energy use.
Prices will be updated on your meter if you're a pay as you go customer, depending on the type you have. If you have a smart meter, then you do not need to do anything. SSE will update your prices automatically when they change.
If your direct debit needs to increase to cover the new prices for your energy uses, SSE will get in touch to change it. Your direct debit is based on your energy prices and how much energy SSE thinks you will use by looking at your past usage.
SSE say they will always put aside credit, usually around the cost of one month's energy, on your account, to help with any changes in usage and costs over time. Any remaining credit of £5 or more will be automatically refunded through your direct debit at your next review, providing it is based on an actual meter reading.
Unfortunately if you only buy electricity you will still see an increase, although it may not be as expensive to those who both have gas and electric households. SSE Energy Services became part of the OVO family in January 2020, and have confirmed that all SSE customers will gradually be moving over to OVO Energy. For customers who are about to move to OVO, your prices should remain exactly the same as they would be with SSE.
Support for SSE customers
SSE have advised customers to pay via direct debit, as the price cap rates are less expensive this way than for on-demand payments. They have also urged customers to send regular meter readings so that the provider doesn't end up estimating more than you are actually using.
SSE have also recommended that customers get a smart meter if they don't already have one, as these send regular readings so that the provider always knows exactly how much energy you use. You can book a free appointment to get an SSE smart meter installed.
Finally, SSE has told customers to look out for fixed energy tariff options online, which are popular with many of SSE's customers. SSE will also tell customers on their bills if they could switch to a cheaper tariff.
Bulb
Bulb is currently in special administration, meaning it is tax-payer funded, but say the provider is operating as usual and that customer's credit balance and energy supplies are protected.
This provider has also announced that their energy bills are set for a steep increase. Electricity and gas rates, along with the daily standing charge, will rise for Pay Monthly and Pay As You Go customers. According to Bulb, this means that an average customer will pay £13.33 a week more for their energy.
Support for Bulb customers
Bulb are providing extra help to customers who need it, including encouraging customers to explore options such as changing the way they pay, such as making weekly or fortnightly payments, or arranging to have your energy bills paid straight out of your benefit payments through Fuel Direct.
The provider can also help you install household energy efficiency measures through the Energy Company Obligation (ECO) scheme, and offer tailored advice to reduce your energy usage.
Finally, Bulb can help you do a financial assessment with one of their partner organisations like Citizens Advice or StepChange. The Bulb Energy Fund offers advice and financial support to eligible members who need help with their energy costs. Applications will open in spring.
