Energy Bills Edge Up For Millions As Winter Bites

Millions of households across England, Scotland, and Wales are facing a slight increase in their energy bills just as the coldest months of the year set in, adding to the ongoing financial squeeze for many. Energy regulator Ofgem has announced a modest rise in its price cap. This means customers on standard variable tariffs will see their unit rates for gas and electricity climb by 0.2% from now. For a household using a typical amount of energy, this translates to an extra £3 on their annual bill, pushing it from £1,755 to £1,758. It’s important to remember that the price cap limits the cost per unit of energy, not your total bill – so the more you use, the more you’ll pay. Adding to the increase, standing charges, the fixed daily costs for connecting to the network, are also rising by 2% for electricity and 3% for gas. While gas unit rates are seeing a small dip, electricity unit rates are going up, meaning those who use more electricity will feel the impact most. Campaigners are quick to point out that even a small increase can hurt, especially when families are already struggling with high living costs and relying more on heating during the depths of winter. This latest adjustment comes at a challenging time for many. However, there’s a glimmer of hope on the horizon. Significant changes announced in the recent Budget are expected to bring down energy costs from April. The government plans to remove certain levies from bills, which could save households around £150 annually. This includes reallocating costs previously aimed at tackling fuel poverty and reducing carbon emissions, shifting them onto general taxation. Energy analysts at Cornwall Insight are forecasting an 8% drop in the price cap for April. This could mean a saving of £138 for a typical household, bringing the annual bill down to £1,620. Even those currently on fixed tariffs will benefit from these April changes, though about £30 of the projected savings will be absorbed by costs for maintaining gas and electricity networks. For those looking to manage their outgoings now, consumer experts suggest exploring fixed tariffs. Some deals currently available are cheaper than the present price cap. It’s often wise to look for offers shorter than 12 months with no hefty exit fees. Various government support schemes are also in place to help. Eligible households in certain areas can receive £25 a week through cold weather payments if temperatures drop to 0C or below for seven consecutive days. Additionally, the £150 Warm Home Discount has been extended to assist more lower-income households. Scotland operates its own separate Winter Heating Payment. For pensioners like James and Christine Jones, every penny counts. Despite receiving their winter fuel payment, they're still cutting back on non-essentials to cover rising costs. "We get a rise on our pension but it gets taken off you by food, petrol and everything else going up all the time so really you don't benefit," James noted, highlighting the broader financial pressures. So, while the immediate outlook sees a slight nudge upwards for energy bills, the spring promises a more substantial reduction. For now, households face a challenging winter, making awareness of available support and smart tariff choices more important than ever. --- Managing your business finances? TaxAce provides smart online accountancy services for UK businesses with flexible monthly plans. Image and reporting: https://www.bbc.co.uk | Read original article