Millions of householders are counting the cost of energy rises as new higher bills come into effect. Customers are facing increases of £693 per year on average as the minimum price cap increased from April 1.
Energy regulator Ofgem has increased the price cap by 54% with further increases promised in October, leaving millions of customers struggling to cope with higher monthly bills.
The energy price cap, which limits the rates a supplier can charge for each unit of gas and electricity you use, jumped by £693 from £1,277 to £1,971. Prepayment customers are being worse hit, with a jump of £708 from £1,309 to £2,017, and that's without the possibility of further hikes, with wholesale gas prices increasing regularly.
The energy price rise is increasingly leaving householders in energy bill 'debt', meaning they owe money on top of their increased bills. According to USwitch, Octopus Energy customers are the most likely to be in debit with 33% of householders owing money on their energy bills. A total of 25% of Scottish Power and Eon customers are in debit, while 22% of OVO customers owe money. SSE is 18% and British Gas and EDF have 16% of customers in debit.
For householders who are yet to receive correspondence from their energy provider, we've compiled a list of the average price rises from the main provides in the UK, to hopefully give you an idea of what's to come. It's worth remembering though that the below increases are set out as average rises from providers, and rates may be higher for individuals depending on energy usage and location.
Scroll down also to find out what support is available to you from the likes of British Gas, EDF, Scottish Power, Octopus, Shell and more.
British Gas
British Gas has revealed that based on a typical household, credit customers will pay £693 (excluding VAT) more on their annual energy bill, which will work out at £58 per month. Prepayment customers will see an increase of £708 (excluding VAT) per year, or £59 per month. As mentioned above, price increases will be different for each household and vary depending on the amount of energy you use and how you pay.
British Gas customers who on the following variable tariffs will see an increase:
- 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
British Gas recommends customers who pay for their energy bills by direct debit increase the amount they pay by as much as they can, in order to keep on top of the higher cost of energy. The say this will make it more manageable when your direct debit is next reviewed, which happens twice a year.
Support
The energy provider have said they've invested £2 million into funding grants to help keep vulnerable customers keep warm in December 2021, which they say they have now added a further £2 million to.
Their fund will remain open until all money has been distributed to customers. To find out how to apply, click here. British Gas has also confirmed that it will be welcoming new customers, having stepped in as a Supplier of Last Resort for some of the energy suppliers that have recently stopped trading.
British Gas also offers customers payment plans that suit customers needs if they find themselves in difficult circumstances. The British Gas Energy Trust is an independently run charity which is funded by British Gas. The charity is able to help by advising on fuel debt, directing customers who are struggling to government grants, or - in some circumstances - allow grants for debt relief.
EDF
EDF customers who are on a standard (variable) tariff or deemed tariff will see their bills rise in line with Ofgem's new price cap. EDF will be contacting these customers in the coming weeks to explain exactly how their household bills will be impacted. EDF's standard variable tariff prices will rise to an average of £1,971 per year, with customers seeing an average annual increase of £693.
EDF prepayment customers are likely to see their tariff rise from the current maximum allowed under the price cap to the new limit. Customers on fixed tariffs will not see their prices change until after their current tariff ends.
Support
To help customers understand how much energy they use, EDF is offering customers a smart meter and Energy Hub access for free. The Energy Hub can be accessed online and uses smart meter data to give customers a personalised view of their energy use, along with tips to help save money and reduce their carbon footprint.
The energy provider has said they can also agree on smaller debt repayments when customers switch to a smart pay as you go meter. EDF also suggests switching to direct debit payments where possible, as customers can pay less for each unit of energy they use. Customers can change the way they pay for their bills by logging onto their EDF MyAccount.
Vulnerable customers may 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.
Octopus
Customers who are on the energy provider's Flexible Octopus tariff will see their gas and electricity prices rise in light of the fuel cap increase. Octopus will contact all customers who are affected. If you are on a Flexible Octopus (variable) tariff, your unit rates are not fixed and can fluctuate depending on the changing costs of energy.
Octopus say they will email every customer who will be impacted by these changes, offering them a personal projection of what this means for their energy costs. You can also check which tariff you are on by accessing your online account. Customers also have the option to fix their prices at any time by switching to a fixed tariff, and therefore locking their prices in for 12 months.
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.
Octopus say their flexible tariff has always been priced below the government's energy price cap, and with the introduction of the company's temporary Loyal Octopus support scheme, the flexible Octopus tariff will be set £50 below the new price cap level for loyal customers.
Loyal customers will also receive an additional £48 rebate through the Loyal Octopus support scheme. The Loyal Octopus support automatically reduces electricity charges by £48 per year compared to the standard tariff price. This means that existing Octopus customers will be paying £50 less than the price cap overall.
Support
Octopus is also doubling its Octopus Assist fund to £5m, which will be used to help as many households as possible. If you are an Octopus customer who is struggling to pay your bills, you can let the provider know through their online financial support tool. The Octopus Assist fund provides grants to those who are struggling, which range from £50 to £500.
Scottish Power
Scottish Power customers on a standard (variable) tariff, pay as you go tariff or any default tariff will see their bills increase in line with the new energy price cap. Scottish Power has said they have contacted these customers with full details of their new prices and what this will mean for their energy costs, along with details of the support on offer to help reduce the impact of the rising prices.
The price cap increase doesn't apply to fixed price tariffs, so those customers will see their prices remain the same for the duration of their tariff. Once the tariff comes to an end, these customers will be moved to Scottish Power's default tariff, unless they choose another fixed price tariff or move to another supplier.
Support
Scottish Power is offering extra help to customers who are struggling. They advise customers to check that they are on the Scottish Power tariff and payment plan that best suits them. For any customers who are struggling with their bills, Scottish Power is able to arrange a repayment plan, which lets you pay any arrears over a period of time with a regular agreed amount based on what you're able to afford.
The Scottish Power Hardship Fund is also available for those who are on a lower income and struggling to pay their bills. You can apply by calling the National Debtline or any other debt advice agency, who can help you to fill in your application. For those who are eligible, Scottish Power will clear all of part of your debt balance.
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
Shell Energy customers who are on a flexible (standard variable tariff) will see a change to their energy bills. If you’re on a fixed energy tariff, these price changes won’t affect you until your fixed tariff ends.
If you’re on a flexible tariff, the price cap increase will affect you. You may already have received a letter or email from Shell to inform you of the price changes.
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) while gas goes from 4.055p to 7.344p per kWH with the gas standing charge from 26.11p to 27.22p.
In a typical household, credit customers will pay £693 more on their annual energy bill, which will work out at £60 per month. Prepayment customers will see an increase of £708 per year, or £59 per month.
Shell Energy have temporarily removed their fixed tariffs because wholesale costs are so high. They say providing customers with a fixed tariff right now would mean setting a price that's higher than the price cap. When wholesale prices stabilise, Shell Energy say they will go back to offering fixed tariffs online with 100% renewable electricity as standard.
Support
Shell Energy say they have been proud to take on half a million affected customers from the collapse of 29 energy suppliers in the UK. They say they are helping those who are struggling to pay their bills and have a created a hub for customers who need extra support. Here you’ll find details of government schemes and debt support, as well as energy-saving advice.
Shell Energy urge customers who are struggling to pay their bill to get in touch 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. You can also contact them online here.
SSE
SSE will be increasing the prices in its standard variable tariff and pay as you go tariffs, in line with Ofgem's price cap increase. The company has already sent out letters and emails to customers whose tariffs will be impacted, which outline how the changes will affect their bills.
The letter includes new energy prices, along with a personalised projection of future bills based on exact or estimated energy use. For pay as you go customers, the prices will be updated on your meter, depending on the type you have. If you have a smart meter, then you do not have to do anything. SSE will update your prices automatically when they change.
SSE will get in touch if your direct debit needs to change and will ask you to increase it if it looks like your direct debit won't cover your energy usage. 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 on your account, usually about the cost of one month's energy. This account helps 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.
Many customers who only buy their electricity from SSE have already seen prices go up, which is due to the fact that wholesale gas is also used to generate a lot of electricity. Since the price of wholesale gas has increased, this has meant that electricity is also more expensive to produce and has pushed electricity bills up too.
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
SSE offer the following advice to help out customers:
- Pay by direct debit - the price cap rates for direct debit payments are less expensive than that for on demand payments (for example, where you pay your bills by cheque).
- Send regular meter readings - without regular meter readings, SSE have to estimate your bills, potentially leaving you paying too much for your energy. If you have a traditional meter, you can submit your meter readings to SSE online.
- Get a smart meter - smart meters send regular meter readings to SSE, meaning they always know exactly how much energy you use. They can also help you to keep track of your energy usage in real time. To get an SSE smart meter installed, you can book a free appointment.
- Look out for fixed energy tariffs - fixed tariffs are popular with many of SSE's customers, so take a look online to see what your options are. SSE will also tell customers on their bills if they could switch to a cheaper tariff.
Bulb
Bulb say they are operating as usual while in special administration, meaning it is tax-payer funded. Customer's credit balance and energy supplies are protected.
They also announced a steep increase to energy bills. Both electricity and gas rates, along with the daily standing charge are to go up for for Pay Monthly and Pay As You Go customers from April 1. The energy firm said it would mean a typical consumer will pay £13.33 a week more for their energy - amounting to a £693.16 rise per year.
Support
Bulb say they appreciate that it's a worrying time for most customers and they have said they can provide extra help to those who need it. Bulb has said this could include changing the way you pay, like asking them to install a top up meter, which can make it easier to budget. Or you can apply to make weekly or fortnightly payments, or arrange to have your energy bills paid straight out of your benefit payments, through Fuel Direct.
Bulb can also 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.
Bulb 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.
The Warm Home Discount is a government scheme which gives people receiving certain benefits a payment of £140 towards their winter electricity bills. It’s paid for by energy suppliers. This year’s scheme is almost full, but you’ll be able to register your interest for next year’s scheme in the coming months.
