In April 2022, energy bills are set to increase again for many households across the country. The amount they will go up will vary but a typical household’s energy bills will cost nearly £700 a year more.
Why have my energy bills gone up?
The energy price cap limits how much energy suppliers are allowed to charge you for each unit of gas or electricity that you use. Every six months the price cap changes and is set by the energy regulator Ofgem.
Last October, the energy price cap increased. This was because gas and electricity prices went up around the world and it cost energy suppliers more to get gas and electricity to you.
On 1 April 2022, the energy price cap will rise again by 54% as the cost for wholesale gas and electricity continues to soar. An average household paying about £25 per week will now pay about £37.50 from April if using the same amount of energy on a standard (variable) tariff.
Price caps don’t limit your total bill. The cap is on the cost per unit of energy. If you use more, you pay more.
How will I be affected?
- The rising costs have led to more than 20 energy companies going out of business. If you were already on a fixed tariff with one of the companies that went bust, you would have been moved to a new supplier on a standard (variable) tariff. This means your bills would have gone up and will likely go up again in April.
- If you were already on a fixed tariff and your supplier didn’t go out of business, you should continue to pay the same price. When your fixed tariff ends it is likely that you will need to pay more.
- If you are on a standard (variable) tariff, the price you pay goes up if the price cap goes up. You could be on standard tariff if you’ve never switched energy tariffs, or if your fixed-term energy deal ends.
What can I do about it?
If you’re on a standard (variable) tariff or you have a fixed tariff that is due to end, at the moment a standard (variable) tariff is likely to be the cheapest option available. However, there are some fixed tariff deals available but please be cautious when comparing. We recommend checking Martin Lewis’ Money Saving Expert advice for up-to-date information on the energy crisis.
Do you want to save energy but are not sure where to start? - We have put together top tips to help you save energy and money on your energy bills. Please click here for our energy advice.
What if my energy supplier has gone bust?
Ofgem has some useful information on what to do if your energy company has gone bust. You’ll also be able to see who your new supplier is, if you haven’t already been told. Please click here to view this information.
What if I’m struggling to pay my energy bill?
If you are struggling to pay your energy bills, please contact your energy provider as soon as possible to see what support is available to you.
Depending on your circumstances, you may be eligible for extra help with your energy bills, such as debt repayment plans, payment breaks, emergency credit for prepayment metered customers etc. We urge you to contact them immediately if you are struggling to pay and tell them about your situation.
Help and support
If you are worried about the impact this energy crisis will have on your finances, get help and support from our teams by clicking here.
We can help with budgeting, maximising your income through benefit take up and can point you in the right direction for more specialist help.
We have also launched a range of projects that offer employment support, digital training and wellbeing for our customers. For more information about the projects in your area, please visit our community projects page.