Energy bills set to rise again this spring hitting millions of households, say experts
ENERGY bills are set to rise again for millions of households this spring, according to experts.
Cornwall Insights predict the yearly cost of running your gas and electricity will rise by £85 from £1,738 now to £1,823 from April 1.
It comes as energy bills have risen twice consecutively, from a low of £1,568 per year between last July and September.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: "Households have been hit hard over the past few months, and with bills set to rise for a third consecutive time the pressure is not letting up."
It's worth bearing in mind, Cornwall Insights' predictions are based on energy prices for those on the Ofgem price cap.
Around 26million households on standard variable tariffs (SVTs) in England, Wales and Scotland are on it.
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The price cap sets a limit on what energy firms can charge customers per unit of gas and electricity.
That means you could end up paying more or less than £1,823 per year on your bills from April based on your usage.
Dr Lowrey said Cornwall Insights expects the price of energy bills to rise in the spring due to an increase in the cost of wholesale gas in Europe.
He said this emphasised the importance of the Government producing more UK-based renewable energy like wind and solar.
The cap is significantly lower than at the peak of the energy crisis, which was fuelled by Russia’s invasion of Ukraine in February 2022.
But prices are still “more volatile than it has been in quite some time, and households are bearing the brunt of cold weather and low gas storage levels across Europe,” Mr Lowrey said.
It comes as the Government pushes ahead with its policy of building out renewable energy, with a goal of reaching 95% clean power across the electricity grid by 2030.
Mr Lowrey said: “It might be tempting to look at rising bills and conclude that the push towards renewables is not working, and we should scale back on the transition.
“But the reality is higher energy costs only reinforce the need to accelerate our expansion of clean, reliable energy across the UK."
The energy price cap was introduced in January 2019 to protect households from volatile energy prices and changes every three months.
Richard Neudegg, director of regulation at Uswitch, said households bracing for the predicted rise to the price cap in April could avoid paying more by opting for a fixed deal.
He said: "Fixed deals protect you from price rises for 12 months or more by locking in rates.
"Switching to a fixed deal at or below the current January price cap level is a no-brainer if you want to avoid the predicted April price rise.
“If you’re not ready to fix, consider a deal such as a tracker which guarantees a saving on the price cap, whether it goes up or down.
“You can’t rely on the price cap to offer the best value. There are deals available right now that will save you money and that you can switch to in a matter of minutes."
It's worth bearing in mind though, lock in to a fixed deal and you could end up paying more overall if the price cap falls.
The exact temperature to set your thermostat
ENERGY bills remain relatively high leaving many worrying over the thermostat.
Energy experts have revealed the exact temperature to set it at so that you can save cash and still keep warm.
When it comes to your thermostat, the Energy Saving Trust recommends you should set it to the "lowest comfortable temperature".
For the majority of us, this is between 18 and 21 degrees Celsius.
It's just the right balance between keeping your home warm, and keeping those energy bills as low as possible.
If you have your thermostat set at a higher temperature you can probably afford to turn it down and still keep cosy.
Of course, there are exceptions like anyone who is in ill health, and there is support available to cover extra costs.
Just by turning down the temp by a single degree, you could save as much as £100 a year.
If you cut it by more you will obviously make even bigger savings.
The Energy Saving Trust also says that you don’t need to turn your thermostat up when it is colder outside, the house will still heat up to the set temperature.
A fixed deal gives you certainty over what you can expect to pay though, making it easier to budget.
You can search for the best fixed energy deals via comparison websites like Uswitch and MoneySupermarket.
How else to save money on energy bills
There are steps you can take now to drive down energy bills, even before any potential price rises in April.
Switching appliances off standby is one quick way to save around £45 a year, according to the Energy Saving Trust (EST).
Draught-proofing windows and doors is another - it could save you around £80 over 12 months.
Plus, ditching your tumble dryer and drying your clothes on a heated airer will likely save you £100s over the colder months.
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Try warming up yourself instead of blasting the heating on during the colder months too by opting for electric blankets and heated throws.
These gadgets cost just pennies to run per hour.
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