Energy bills: Which? 5 tips to tackle Ofgem price cap rise

Energy bills will rise by £149 for the average household from today after Ofgem announced it would be raising its energy price cap.

The new price cap figure is £1,717, up from £1,568 previously.

The cap does not set the maximum a household will pay for their energy but limits the amount providers can charge them per unit of gas or electricity, so those who use more energy will pay more.

Jonathan Brearley, chief executive of Ofgem, said: “We know that this rise in the price cap is going to be extremely difficult for many households.

“Anyone who is struggling to pay their bill should make sure they have access to all the benefits they are entitled to, particularly pension credit, and contact their energy company for further help and support.”

To help combat the rise, consumer experts Which? are advising people to check whether there are steps they can take to soften the blow.

Should you fix your energy bill?

As a first step, the consumer champion recommends checking energy bills to see if there are savings to be had. While you’re unlikely to save a huge sum by switching provider or tariff, consider paperless bills and paying by direct debit if you haven’t already.

You could save over £50 per year by switching to one of the cheapest deals on offer (based on a typical household) compared with the price cap.

If you want to fix an energy deal, look for one that costs less than the October price cap. A couple of firms are selling tariffs which track a set amount below the price cap.

Don’t tie yourself in for too long, in case energy prices change, and watch out for high exit fees. We’ve seen some tariffs with these early exit penalties set as high as £125 per fuel.

Draught proofing

It may be possible to make small improvements to a property’s insulation – but those can add up to significant savings. It can cost as little as £15 to fit insulation around exposed hot water pipes. More insulation will add up to more money off your energy bills.

Draught proofing will make energy bills more cost effective and does not have to be complex. It can save consumers money if they consider draught proofing places in their house including sash windows, loft hatches, cracks in walls and floor and skirting boards.

Consider purchasing a draught excluder or make one yourself by filling a large piece of fabric with old clothes or rice.

How to save energy with appliances

Using appliances efficiently is also a good way to save money as many, including washer dryers and condenser tumble dryers, are costly to use. To save money, do laundry at 30 degrees instead of 40 as it makes it 38 per cent cheaper, according to Which?’s tests. Stacking dishwashers efficiently so that every item gets cleaned well – and only running the machine when it is full – will also shave a few more pounds off your bills.

If you have a condenser tumble dryer it will be particularly expensive to run- while heat pump tumble dryers cost an average of £50 a year to run, owners of condenser tumble dryers pay considerably more to run them. Average annual running costs will be £127 from October. The most expensive condenser model will cost £171 a year to run.

Heating water is another expense that can lead to mounting energy bills. If you have a hot water tank, save money by using heating controls to turn your water heating on and off so you only heat as much water as you need.

If you have a combi boiler that heats water on demand, try setting your water temperature a little lower if you find you usually have to mix it with cold water anyway, and avoid running hot water for a long time when you’re washing dishes or showering.

How to save money on your heating

For heating your home, heating controls enable consumers to set their heating and hot water to turn on and off to suit them, heat only the parts of their home that need it, set different temperatures for different areas of their home and keep their home at a temperature that is comfortable, without wasting heat.

If you don’t have them already, install a room thermostat, programmer or thermostatic radiator valves (and use them well). This could save a typical household over £100 per year on energy bills each year, according to Energy Saving Trust.

Get your boiler serviced

Make sure to get your boiler serviced every year and ask your engineer to make sure it is running as efficiently as possible, so that you are ready to heat your home effectively when temperatures drop. If your boiler is very old and faulty, a new model will likely be cheaper to run.

Buying a new boiler can cost around £3,700 according to the Energy Saving Trust, including installation and new radiator valves, so you need to weigh that up against any potential savings. Which? don’t recommend replacing a boiler until it is at the end of its life.

Emily Seymour, Which? Energy Editor, said: “Many households will understandably be worried that the energy price cap is rising tomorrow – a time of year when we all start to use more energy.

“There are simple steps you can take right now that won’t cost a penny but could help you to cancel out the cost of the increase in the price cap.

“Anyone looking to upgrade their home with improvements that could reduce their energy bills should use the free Which? home energy planning service to get a free personalised plan.”