Ofgem has officially announced an increase in energy bills, but there are strategies to reduce your expenses. Assistance is also accessible for individuals facing challenges in paying their gas and electricity bills. The Ofgem energy price cap for the average dual fuel household paying by direct debit will rise from £1,720 annually to £1,755 starting in October.
The Ofgem price cap does not restrict the total energy costs but sets limits on gas and electricity unit rates and standing charges. Standing charges are necessary for connection to the energy network and vary for prepayment customers and those paying upon bill receipt.
It is advisable to contact your energy provider for available support if you encounter difficulty in paying your energy bills. Timely communication is key to avoiding falling behind on payments, which could negatively impact your credit score and lead to potential legal actions and debt collection visits.
Energy companies may offer payment plans, breaks, and manageable debt repayment options. Vulnerable customers, like pensioners or those with long-term health conditions, may qualify for the Priority Services Register, granting benefits such as advance notice of planned power cuts and emergency support.
Emergency credit, typically ranging from £5 to £15, can be provided by suppliers to prevent energy depletion. “Friendly credit” periods, during which disconnection is postponed, are usually offered during specific times of the week by suppliers.
Hardship funds and grants are available from major energy firms for individuals in energy debt, usually without repayment obligations. The British Gas Energy Trust extends grants up to £2,000 to households meeting specific criteria, irrespective of being a customer.
The Warm Home Discount scheme offers a £150 reduction on electricity bills, applicable to energy bills or as a voucher for prepayment customers. Eligibility criteria include claiming certain benefits like Pension Credit or Universal Credit in England and Wales.
Cold Weather Payments of £25 are disbursed during periods of 0C or lower temperatures for seven consecutive days. Residents in England, Wales, or Scotland claiming specific benefits or Support for Mortgage Interest may qualify for these payments.
Winter Fuel Payments are cash benefits of £200 or £300 for eligible households with individuals aged over 80. Payments are sent from November onwards to pensioners born before September 22, 1959, with repayments required for those earning over £35,000.
Various charities offer support and advice for energy bill payment struggles or debt issues. For broader debt assistance, individuals can seek guidance from specified sources.