What to do if you’re struggling to pay energy bills
Freezing weather this week means that millions of us have turned up the heating to stay warm, but rising energy costs are a huge worry for many already stretched households.
The energy regulator Ofgem announced last week that the energy price cap will increase again in January, so that for an average household using a typical amount of energy and paying by Direct Debit for their gas and electricity, bills will rise to £1,738 per year, up from £1,717 currently.
It’s important to remember that the price cap sets a maximum rate per unit and standing charge that you can be billed for. That means if you live in a smaller property and use a limited amount of energy, your bills are likely to be lower than the price cap, whereas in you live in a large property and consume a significant amount of energy, your bills may be higher.
Steve Vaid, chief executive at the Money Advice Trust, the charity that runs National Debtline, said: “Despite the colder months, millions of people are set to cut back on their energy usage this winter due to high costs.
“And with energy arrears at record levels, this further rise in the energy price cap will heap more pressure on households whose budgets are at breaking point.”
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According to debt charity StepChange, the average energy arrears for those seeking help stood at £2,516 in October, up 23% since the start of the year.
Options if you’re worried about paying bills
If you’re finding it difficult to keep up with your energy payments, contact your supplier as soon as possible and let them know you’re having problems.
An Ofgem spokesman said: “If consumers are worried about paying their bills, they can contact their supplier for support. Ofgem’s rules mean they must work with their customers to agree an affordable payment plan. They may also be able to help by offering more time to pay, access to hardship funds and advice on how to use less energy.”
It’s also worth checking whether there’s a cheaper tariff you could switch to. as there is a rising number of options available. Ofgem claims that savings of up to £140 are currently available by switching.
Gareth Kloet, spokesman for Go Compare Energy, said; “Whether you switch or not, it’s important to take a meter reading as close to the 1st of January as possible, to make sure you are charged for the right amount of energy at the right price. Even if you have a smart meter, taking a manual reading monthly is a good way to make sure your energy usage is being captured correctly.”
If you’re pension age, and are finding it difficult to pay your bill because you no longer get the Winter Fuel Payment, you should check your eligibility for Pension Credit using the Gov.uk Pension Credit calculator. If you qualify, your Winter Fuel Payment should be reinstated, and you’ll also have access to access to a range of other benefits, including council tax reductions, housing benefit and a free TV licence if you’re aged over 75.