Households Urged to Fix Energy Tariffs Now as Bills Predicted to Soar into Winter
Energy costs are poised to rise in July, with experts warning that gas price increases will likely keep household bills elevated throughout the winter months. Despite previous efforts to economise, consumers are urged to implement further savings strategies now to mitigate future financial strain.
Fixed Tariffs and Payment Methods
Approximately 22 million individuals, representing 40% of billpayers, benefit from fixed tariffs. These agreements lock in the unit cost of energy for a specified period, typically one year, though the total bill still fluctuates with consumption. Current market offerings for fixed tariffs are cheaper than the prevailing price cap. However, a significant downturn in international energy markets could diminish the savings advantage.
Regulator Ofgem notes that opting for quarterly bill payments over monthly direct debits costs, on average, an additional £140 per year. Around seven million households still utilise these standard credit accounts, despite the clear financial disadvantage.
Energy Efficiency and Financial Assistance
Even during warmer periods, it is an opportune moment to enhance home energy efficiency. Measures such as draught-proofing, optimising cooking habits, and bleeding radiators can yield savings. Reducing shower times, though a minor contribution individually, collectively impacts consumption.
Millions in benefits, particularly pension credit, remain unclaimed. Pension credit acts as a gateway to other financial support for older people. Furthermore, local councils may offer grants for energy efficiency improvements, with eligibility varying by income and location. Charities like Citizens Advice can assist in identifying available support.
Addressing Unpaid Bills
Collectively, consumers owe a staggering £4.5 billion in unpaid energy bills and charges. Suppliers indicate a willingness to offer debt write-offs, payment plans, or assistance with white goods, but only if customers communicate their financial difficulties. Households should proactively enquire about the specific support measures their supplier provides.