Martyn James: Summer is over, so here’s how to save on your energy bill
If you’re worried about the energy price cap going up again, Martyn James has got some advice
The days are drawing in, and the weather is starting to turn. But nothing says summer is over like the announcement of the October energy price cap.
Every three months, Ofgem announces what the maximum amount energy suppliers can charge us will be. Given the conflicts and volatility around the world at the moment, it won’t be a surprise to discover that prices are rising – in this case by 4 per cent. That means the average bill will go up by £60 to £1,724 a year. That’s for a two up, two down house.
Even though the new price cap won’t kick in until October 2026, you might be worrying about paying the bills. Here’s my guide to cutting your bill.
Fixing your energy bill
Energy fixing is where you agree to ‘fix’ a price for the units of energy you use for the duration of the contract. You can do this by switching or by staying with your current energy supplier. Around 22 million households have already fixed their bills. But there are around 34 million others who will see bills increase.
How to find an energy deal that works for you
You can find a wide range of energy switching deals on comparison sites, but bear in mind that they may not display every deal available.
Don’t rush into a decision though. Take a short while to understand more about the various options available. There are lots of different types of energy tariff out there, but most fall in to four categories.
- Fixing the biggest discount, but with exit fees/other conditions.
- Fixing a lower discount with no exit fees.
- Fixing just gas or electricity.
- Choose a ‘discounted variable price cap’ tariff that stays a percentage under every price cap.
You may be able to ‘bundle’ your energy bills with other utilities to get a discount.
If you have a pre-payment meter, then are some fixed deals out there for you too. Don’t forget that you’re on a slightly cheaper price cap.
What do I need to check before committing?
Once you’ve found a tariff that works for you, check out the T&Cs. Here are some things to bear in mind if you are thinking about fixing:
Duration: How long is the contract?
Total price of the contract: How much are you saving by fixing a price over the term of the contract?
Exit fees: How much do you have to pay to get out of the contract early?
Deal breakers: Do you have other contractual obligations to get a good deal, like taking out an insurance policy through the business too?
Exit fees apply to many deals and range considerably in price, though they are usually highlighted in comparison tables. Bear in mind if the price cap drops significantly during your contract, you could have to pay to leave early.
How do I cut my energy bill?
If you can’t afford your bill, don’t stop using energy – contact the firm and ask what they can do to help. But if you want to save some cash, the Energy Saving Trust has loads of tips.
What if I can’t afford to pay my bill?
If you don’t have enough money to cover your outgoings – or you are left with little to cover you for emergencies – you meet the definition of financial difficulties.
According to Ofgem’s regulations, your energy provider should come up with a tailored plan to meet your needs. You can read what businesses are supposed to do on Ofgem’s website.
The regulator says that you can ask for the following:
- A review of your payments and debt repayments
- Payment breaks or reductions
- More time to pay
- Access to hardship funds
- Advice on how to use less energy
- The option to go on the Priority Services Register – a free service for a wide range of people struggling or who need support:
If you make a complaint about your energy supplier but you still aren’t happy, then you can take your complaint to the Energy Ombudsman for free.
Martyn James is a leading consumer rights campaigner, TV and radio presenter and journalist. Read more from him here.
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