Ofgem confirms energy bills likely to rise again in October - here are five ways to prepare and save

Household bills are expected to rise again, with energy companies being allowed to charge an extra £800 per year.

By Leanne Clarke
Tuesday, 24th May 2022, 3:26 pm
Updated Tuesday, 24th May 2022, 3:29 pm

The current cap is £1,971, however Ofgem is expecting an energy price cap in October to be ‘in the region of £2,800’, which could mean a rise of over £800 for many- a 42% increase.

Nick Drewe, discounts expert at online savings platform, WeThrift, has shared advice on how you can save money on your energy bills.

He said: "Understanding the information related to your energy tariff and household consumption will help you keep the costs of your bills down.

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Household bills are expected to rise again, with energy companies being allowed to charge an extra £800 per year.

"The personal projection on the bill is the amount your household is expected to spend over the next 12 months, and the tariff comparison rate figure helps you understand how much you’re spending per kilowatt hour of gas and electricity.

"Researching and comparing prices is important and if you are looking to switch energy suppliers, be sure to analyse each company’s exit fees, and opt for one that won’t charge if you want to leave."

Keep checking your bills regularly:

Whilst some energy suppliers have been known to either make changes to tariffs or make mistakes when charging customers, it’s always a good idea to check your regular household bills.

Throughout the year, those who continue to work from home or have flexible conditions may opt to stay at home, therefore bills for water, energy and mobile data are likely to increase.

Research before choosing a supplier:

While many bill payers may instinctively choose an energy supplier they are familiar with, this may not always be the most cost-effective option. Really delve into a wide range of energy suppliers available and compare their prices.

Also note, if you are looking to switch energy suppliers, be sure to analyse each company’s exit fees, and opt for one that won’t charge the earth if you want to leave.

Understand your energy bill: Whilst there is often a lot of terms and conditions to read, attempting to understand the information related to your energy tariff and household consumption could help you keep the costs of your bills down.

The personal projection on the bill is the amount your household is expected to spend over the next 12 months, and the tariff comparison rate figure helps you understand how much you’re spending per kilowatt hour of gas and electricity.

Knowing this information will make it easier when comparing energy deals if you are planning to switch to a cheaper one, or help you monitor your current energy consumption.

Pub landlord or restaurant owner?

Heating a pub or restaurant, particularly during the winter, is important to keep customers warm and happy, however, you don’t need your temperature any higher than 21 degrees. Not only will it probably make your staff and customers too hot, but will also rack up your bills. The lower the temperature, the cheaper the bill.

Also, take into consideration which rooms you are using. It is no good heating a back storage room that is holding stock. Turn the radiators off in the rooms that don't require heating - again this will reduce your bills. Additionally, Thermostatic valves on your radiators can also regulate the temperature in rooms and they allow you to stop heating rooms you aren’t currently using.

Another trick is to set a timer to ensure that you are only heating the premises when you need to, as there is no need to heat an empty pub. Set the timer to switch off an hour before closing time and programme it to come back on in the morning.

If you find your pub just doesn’t seem to be warming up, you may want to consider looking at the building insulation. If you operate a well-insulated building, you will spend less on your energy bills.

In terms of cost-effectiveness, loft insulation is the cheapest and easiest to do, costing about £250 if you opt for mineral wool insulation. This will pay back in just a couple of years.”

Living alone?

Make sure companies know: If you currently live alone, there are ways to cut the cost of living that you may not have realised. If you didn’t already know, living alone allows you to take advantage of a 25% discount on your council tax bill, saving you hundreds of pounds a year, making a particular difference when prices go up.

It’s also worth checking any benefits you may be entitled to, often based not only on your individual wage, but on total household income. Those who live alone can be eligible for financial assistance you’re not receiving.