5 ways to beat the energy bill rise as households set to see £111 increase

The average energy bill for a dual-fuel home paying by direct debit will increase from £1,738-a-year to £1,849 from April 1.

This follows today’s higher-than-expected 6.4% increase in Ofgem’s energy price cap – meaning the average bill rises by £111 a year.

This will be no comfort to the millions of Brits already battling rising prices for everyday goods and services with UK inflation hitting a 10-month high of 3% last week.

(Image: PA Wire)

Today’s price cap rise, affecting April 1 to June 30, follows a previous 1.2% rise of £21 for the January 1 to March 31 period.

Greg Marsh, CEO and co-founder of AI household money-saver Nous.co, said: “The third energy price hike in a row is a serious blow to households.

“A typical household will be paying more than £500 a year more than they were pre-COVID, and record numbers are in debt to their energy supplier.

“Ofgem and the Government need to do far more to encourage proper competition so that ordinary people can make decent savings by switching.”

Take a meter reading before March 31

“Ofgem’s energy price cap is increasing on 1 April. If you don’t have a smart meter, make sure you take a manual reading on or just before 31 March, so your supplier doesn’t charge you for any extra energy under the new higher rates.”

Make sure your smart meter isn’t in dumb mode

“Nearly 4 million smart meters in Britain aren’t working, meaning people are being charged based on estimated usage. This can lead to overpaying by hundreds. If readings on your bill are marked ‘e’, they’re estimates and could be wrong. You should submit regular manual readings if this is happening.”

Review your credit balance

“If you pay your energy bills by direct debit, you should build up some credit over the summer and use this up over winter when your needs are higher. If you’ve got significant credit right now, your monthly payment is set too high and you should ask for a refund from your supplier.”

Don’t ditch your direct debit

“If you discover your direct debit is too low or too high, don’t ditch it entirely – it’s the cheapest method of paying for energy. Customers who pay by standard credit currently pay around £100 per year more than direct debit customers.”

Save more than £100 without committing to a fix

“Most households are out of contract right now and can save by switching providers with Nous.co. The majority can save the better part of £150 on their energy bills, without having to commit to a fixed deal. That means they’ll still benefit if the price cap comes down in the summer as predicted.”