Households continue to face higher energy costs, but there are strategies available to reduce expenses. The current Ofgem price cap stands at £1,755 annually for the average household paying via direct debit, with an upcoming increase to £1,758 starting in January.
As temperatures drop during the coldest months, the next price cap adjustment will take effect. Ofgem advises households to consider switching to a fixed energy tariff to control expenses, where prices are locked for a specific duration.
According to a comparison table by moneysavingexpert.com, the lowest-priced fixed tariff on the market is over 10% cheaper than the current price cap. Additionally, tracker tariffs that fluctuate based on wholesale energy prices provide another cost-saving option.
This winter, extra financial assistance is available, particularly for elderly or low-income individuals. Eligible households may receive a £150 discount on their electricity bill through the Warm Home Discount scheme, applied directly to their energy account or as a voucher for prepayment customers.
Pensioners born before September 22, 1959, can benefit from Winter Fuel Payments of up to £300, with higher earners subject to repayment through the tax system. Cold Weather Payments of £25 are issued during prolonged periods of freezing temperatures.
Simple energy-saving practices such as reducing standby power usage and avoiding overfilling kettles can lead to significant savings. Adjusting the thermostat by just one degree can result in around £90 in savings without sacrificing comfort.
For those concerned about falling behind on payments, contacting the energy provider promptly to explore available assistance options is recommended. Vulnerable customers can register for the Priority Services Register for advance notifications of power cuts and emergency support.
To prepare for winter, sealing draughts to prevent heat loss is crucial. Affordable solutions like draught excluders under doors can effectively block cold air. Draught-proofing measures can save around £85 annually, with potential eligibility for boiler grants or insulation support through the Energy Company Obligation scheme for low-income households.