Household energy bills to fall in July under new cap

By Taaza Facts

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Energy regulator Ofgem has announced good news for households as energy bills are due to fall from July as the energy bill cap has been adjusted.

From 1 July to 30 September the price for energy in a typical household who use electricity and gas, will go down to £1568 per year.

Overall, it‘s a fall of £122 per year, compared to the price cap set from 1 April to 30 June 2024 £1690, a 7% drop in price..

You are covered by the cap if you pay for your electricity and gas by standard credit a payment made when you get your electricity and gas bill, direct debit, a prepayment meter or on an Economy 7 meter.

Every three months Ofgem review and set a level on how much an energy supplier can charge for each unit of energy.

If you have a standard variable tariff, you will pay on average 22.36  pence per kilowatt hour (kWh) for your electricity.

The daily standing charge is 60.12 pence per day, which is based on the average across England, Scotland and Wales and includes VAT.

While the gas prices are to be an average 5.48  pence per kWh, where the daily standard charge is 31.41  pence per day, again this is the average across England, Scotland and Wales and also includes VAT.

The latest cap means that bills are to be the lowest they have been in the past two years, and are at their lowest level since the Russian invasion of Ukraine in February 2022 that sent energy prices spiralling upwards.

Yet compared to before the Covid-19 pandemic, bills are still more expensive and in contrast to three years ago energy prices are around £400 higher.

The announcement by Ofgem follows a prediction by influential consultancy Cornwall Insight, who also said that energy bills would be reduced by 7%.

 

What can you do if you cannot afford your bill

If your energy bills are more than what you can pay there are some ways that you can approach the problem.

For example if you are paying estimated bills then get in touch with your provider to begin to supply you with actual energy meter readings, that are often less compared to estimated energy use.

You can also ask your energy provider for a pause over your payments to give you some respite, but be warned that your energy company does not have to agree to any pause agreement.

If this is the case then you can make a complaint to your supplier, and state your case once more.

You might be able to repay your debt directly from your benefits through the Fuel Direct Scheme.

Currently a fixed amount will automatically be taken from your benefits to cover any energy debt, they might take an extra amount for your current use if you agree to these terms.

You must be claiming Income-Based Jobseeker’s Allowance, Income Support, income-related Employment and Support Allowance, Pension Credit or Universal Credit to qualify for the scheme.

 

Useful tips to reduce your energy bill

There are many ways that you can keep control of your energy bills that can save you money.

A smart meter is a good way to keep in contact touch over the amount and cost of your energy use.

When it comes to heating your home reduce the temperature on your thermostat, which will save you a significant amount.

Another measure is to  reduce the flow temperature on your combi boiler by as little as 9% (80°C – 60°C), and see a notable drop in your energy bills.

Although not all systems are adjustable in this way so check with your supplier.

Other more simple ways to cut your bills are to only heat your home when you are inside it, and do not heat rooms that are not occupied.

Also make sure that you draught proof your house, it would be best to insulate your house in areas such as door fittings, chimneys, floorboards, hot water pipes, keyholes,

Letterboxes, lofts and window fittings.

You can also take action in trapping heat in your home , by simple acts such as closing your curtains or blinds.

Do not waste energy by overfilling your kettle, and investing in a slow cooker would be beneficial as they are a highly energy efficient appliance.

Avoid using large pots and pans to cook with as they take more time to heat up, and it would also help to defrost you freezer regularly as this will mean that less energy is used to keep it at the temperature that you want.

Also make sure that you fix leaky taps as they can cost you, and it is also beneficial to use a water efficient shower head.


Taaza Facts

I am a multifaceted content creator with expertise in blogging, Finance, and Cryptocurrency reviews. My creative journey involves weaving captivating stories in blogs, designing aesthetically pleasing and functional websites, and dissecting the nuances of cinema. We are dedicated to sharing our passion and insights with a global audience.

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