Bill payers are being urged to provide accurate meter readings as gas and electricity price increases take effect.
Households in England, Wales and Scotland using a typical amount of gas and electricity will now pay ÂŁ1,717 a year, a 10% increase on their annual bill of ÂŁ149.
Experts have encouraged people to submit meter readings as changes come in to avoid being charged for their estimated usage at higher rates.
Explain when the season is near without extra cost-of-living payments for people on low income, and as future fuel payments are withdrawn for about 10 million pensioners.
Price cap changes
Energy prices for about 27 million homes in England, Wales and Scotland are governed by a price cap, calculated by energy regulator Ofgem. It is set every three months and affects the price paid for each unit of gas and electricity.
In closing, the price has fallen twice this year – in April and July – but now, at the beginning of October, it has increased by around £12 per month for regular users.
The final bill will depend on the amount of energy used, but to estimate the effect on annual costs, billpayers can add 10% to the current bill.
By reading meters and transmitting them to suppliers, price comparison website Uswitch says bill payers could avoid being charged in the short term for energy they haven’t used, or have bills based on estimated readings at higher rates. Those with operational smart meters have automatic readings.
Costs remain rising by one cent a day for both gas and electricity, but regulators are considering reforming the system.
The price cap is defined by Ofgem as the annual bill for a household using a typical amount of gas and electricity. It affects those in the standard, variable tariffs, not those who have fixed the price for the flight period.
The annual bill is lower than last winter, but the charity says many people will struggle to cover the cost.
Some households owe money to their suppliers. Ofgem said that almost ÂŁ3.7bn was owed together.
Steve Vaid, chief executive of the Money Advice Trust, a charity that runs the National Debtline, said: “This just highlights what we have been saying for some time – without urgent support for households facing unaffordable arrears, energy debt will only increase further.”
James McMahon, from Blackburn, is a bit behind on his gas bill, which he says he is “not proud of” but it is unavoidable.
“(The price increase) is a big disappointment. You feel it inside,” He said.
“You can be big and proud and say I can manage, and make extra money. But if you take away everything else that’s going to happen, it’s very little.”
Some households will have less support as the final cost-of-living payments are made to eight million people with means-tested benefits in February.
For pensioners, the previously universal winter fuel payment, worth up to ÂŁ300, will now be paid only to low-income earners on certain benefits.
The payment is a devolved matter in Scotland and Northern Ireland and the Scottish government has confirmed it will also not offer winter fuel payments to all pensioners.
While some previous recipients have said they don’t need it, charities and many MPs are concerned about pensioners who still have a small income to lose.
Forecasters have given some comfort with changes to predictions for energy bills when the next cap goes into force in January.
Cornwall Insight consultancy, which analyzes the sector, predicted a 1% drop in January to an annual bill of ÂŁ1,697 for a household using a typical amount of energy.
The energy company said a voluntary initiative implemented over the past four years had identified vulnerable customers.
The sector’s trade body, Energy UK, said additional support totaling £500m had been made available to those in need.
In specific terms, the latest change in price means:
- Gas prices are capped at 6.24p per kilowatt hour (kWh), and electricity at 24.5p per kWh – up from 5.48p and 22.36p respectively. Most households use 2,700 kWh of electricity per year, and 11,500 kWh of gas.
- Households on prepaid meters pay slightly less than on direct debit, with a typical bill of ÂŁ1,669
- Those who pay their bills every three months by cash or check pay more, with a typical bill of ÂŁ1,829
- Fixed charges – fixed daily charges that cover the cost of connecting to the supply – have risen to 61p a day for electricity and 32p a day for gas, compared with 60p and 31p, respectively, although they vary by region.
How many pensioners can claim support
Hundreds of thousands of low-income pensioner households who are eligible for pension credits are now failing to claim them.
The government said it would cost an average of ÂŁ3,900 a year and said it could make it conditional on other financial support such as winter fuel payments.
You can check your eligibility for pension credit through government online calculator.
Information is also available at how to make a claim. There is also a phone line available on weekdays – 0800 99 1234.
A guide to benefits, when you qualify and what to do if something goes wrong, provided by an independent MoneyHelper websitesupported by the government.
Profit calculator is also open by Wisdom in Practiceand charity Right toand Turn2us.