Major energy providers have announced their new tariffs- adding hundreds of pounds to household bills ahead of the increase of the price cap next month.
Regulator Ofgem announced earlier this year that the price cap would be shooting up to 54 per cent, adding £693 a year onto the average household bill. The price cap sets a limit on the rates a supplier can charge for each unit of gas and electric and is currently renewed twice year.
That will total up to £1,971 from £1,277 - a huge hit to households. Those on pre-payment meters will see £708 extra onto their yearly bill. The price cap sets a limit on the rates a supplier can charge for each unit of gas and electric and is currently renewed twice year.
Read more: Octopus Energy is first supplier to offer tariff under price cap
Financial journalist Martin Lewis warns that prices are likely to rise again in October by another 40 per cent. He has pleaded with the UK Government to intervene and offer more support.
There will be a £250 rebate offered that households will have to pay back over five years, but the Money Saving Expert founder has said that won't be enough, especially if prices go up again. As the Mirror reports, there are no fixed-rate deals on the open market that beat the price cap - leaving many households best off on standard variable rates.
The UK is heading into a cost of living crisis, and where most would look for a better energy deal, they are stuck with what they have and nowhere else to turn to for a cheaper tariff. The only possibility is that the energy company may reward current customers or offer them a deal that matches or betters the price cap.
For example, earlier this month, a cheap fixed-rate deal by E.on was pulled just hours after it was flagged by Mr Lewis. The MoneySavingExpert founder had flagged the E.on Next Online V11 one-year fix to his 1.3million followers on Twitter, which was set at the same rate as the April 2022 price cap.
Energy suppliers' standard tariffs from April
Naturally, all energy companies have increased their tariffs with the majority hiking their standard tariffs to the maximum allowed by the April price cap.
The major exception is Octopus Energy, which has announced a new loyalty tariff that is £50 below the price cap. The new rate applies to the Octopus Flexible variable tariff, which is being quoted at £1,921 a year for someone with typical energy use.
But it is only available to customers who joined the energy firm by March 3, 2022, or if you’re coming off a fixed deal before April 2, 2022. Here are how the major energy companies compare:
- British Gas - £1,971 (direct debit) or £2,017 (pre-payment)
- Bulb - £1,971 (direct debit) or £2,017 (pre-payment)
- E.on - £1,971 (direct debit) or £2,017 (pre-payment)
- EDF Energy - £1,970 (direct debit) or £2,017 (pre-payment)
- Octopus Energy - £1,921 (existing direct debit customers) or £1,969 (new direct debit customers); pre-payment TBC
- Outfox the Market - £1,971
- Ovo Energy - £1,970 (direct debit) or £2,015 (pre-payment)
- Scottish Power - £1,971 (direct debit) or £2,017 (pre-payment)
- Shell Energy - £1,971 (direct debit) or £2,017 (pre-payment)
- SSE - £1,970 (direct debit) or £2,015 (pre-payment)
- Utility Warehouse - £1,960 (direct debit) or £1,991 (pre-payment)
These prices are averages as gas and electricity unit rates and standing charges vary by region.
Check what help you can get with your energy bills
If you’re really worried about your energy bills, you should speak to your energy provider first to see what support they can give you. Some firms, including Octopus Energy, have a fund to help those who can't pay.
There are also lots of schemes you may be eligible for, particularly if you're in a low income household or claim benefits. In Scotland you can apply to the Home Heating Support Fund, which is open for applicants until the end of March.
For example, there is the Warm Home Discount scheme, which offers £140 one-off payments for those who get the Guarantee element of Pension Credit or are on a low income. There is also the Winter Fuel Payment scheme, where those getting the state pension can get between £100 and £300.
Low income households can also get £25 a week to help with energy bills during the winter thanks to the Cold Weather Payment scheme too.
