The Cost of Keeping Warm
Just as the weather gets chilly, the cost of putting the heating on will cost more. From Tuesday, the typical bill for people who use gas and electricity, and pay by direct debit, will rise by nearly 10% – more than wiping out the 7% cut we got on 1 July. And the latest forecast is that in January prices will rise slightly again.
The actual change in your bill will depend on how much energy you use, the mix of the two fuels, and how you pay. Detailed figures from the energy regulator Ofgem show that the price of each unit of gas will be nearly 14% higher, while electricity units will rise by nearly 10% – putting them where they were before the July cut. Standing charges will rise, too, though only by a small amount, so the cost of having electricity and gas delivered to your home will be £6.50 a week.
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However, people who wait for the quarterly bill and pay by credit card or cheque will face a bigger rise on top of their already record standing charges, taking the two to £7.24 a week even if they use no fuel at all. They also pay the highest charges for the electricity and gas they do use. Five million households pay quarterly – if yours is one, you should definitely consider changing to direct debit.
On average, standing charges have risen by 80% since winter 2021/22, and Ofgem found that nearly two out of three who responded to a consultation said they should be abolished. Ofgem warns that would put up costs for many low-income households who are high users and could cause problems for suppliers. It suggests instead reducing the maximum standing charge by between £20 and £100.
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It also wants suppliers to offer tariffs with lower standing charges or even none at all. Some already do that, so if you are a low user it might be worthwhile finding tariffs with lower standing charges.
Smart meters should make the change to higher prices automatically on 1 October. But if you do not have one – or yours does not work – read your meter last thing on Monday 30th so you do not pay the higher price for units used before Tuesday.