Before the onset of winter, energy and gas prices for British customers are expected to increase significantly, contributing to the general upward trend in prices across practically all categories, from groceries to gasoline.
According to Ofgem Chief Executive Officer Jonathan Brearley, who spoke before a group of parliamentarians, the energy price cap is set to surge to a record $2,800 (or $3,499) in October. Approximately 12 million households will be forced into fuel poverty as this, just as demand for heating is beginning to increase as the cold weather approaches.
Because there is no price cap on non-domestic energy, rises in the energy bills paid by businesses will ultimately result in higher consumer costs. There is also a possibility of widespread negative effects on the economy, particularly if prices keep climbing upward.
If you’re having trouble paying your energy bills, here’s what you can do to cut back:
Apply for a Warm Home Discount
Warm Home Discount is a government program that provides those who qualify with a discount of up to £140 off their monthly power bill during winter. You will not receive the money; instead, it will be given to your energy provider to help defray part of the costs of providing you with energy.
Find Out About the Cold Weather Payment
This government program is very similar to the Warm Home Discount. Under this program, eligible individuals can submit a claim for £25 every seven days if the average temperature in their region has been recorded as or is forecast to be zero degrees Celsius or below for at least seven consecutive days.
Improve Your Energy Efficiency
It may appear to be an easy answer to the rising energy prices; however, given that your electricity bill will most likely be determined based on the price per unit of energy consumed, reducing your overall energy consumption will result in lower annual costs.
Reducing energy consumption is already a prominent topic of discussion in the disciplines of sustainability and environmentalism. Increasing your energy efficiency will not only be better for the environment, but it will also help you save significantly on your monthly utility bills.
Be More Financially Resilient
This whole thing is about getting more organized with your approach to managing your finances. Establish a monthly budget, evaluate your expenditures, and become familiar with your accounts and monthly credit card statements. There are multiple applications available for managing your finances. These apps may help you quickly classify your invoices to see what you are required to pay and what expenses you can reduce. You won’t believe the difference just a little bit of advanced planning can make.
Switch Your Energy Supplier
As prices of commercial energy tariffs continue to grow, one method to reduce the cost of your energy bill may be to switch suppliers and take advantage of discounts offered to new customers. Switching gas and electricity providers might significantly affect your monthly expenses.
The Bottom Line
It might be nerve-wracking to worry about whether or not you can afford to pay your utility bills. If you are having difficulty, however, assistance can be provided. Getting in touch with your supplier to request assistance before missing a payment is essential.