Households continue to face higher energy costs, but there are strategies to reduce expenses. The current Ofgem price cap stands at £1,755 annually for a typical household using direct debit, with an upcoming increase to £1,758 in January. This price adjustment coincides with the onset of the coldest months, prompting Ofgem to recommend switching to a fixed energy tariff to save money by securing rates for a specific period.
According to a comparison table by moneysavingexpert.com, the cheapest available fixed tariff on the market is over 10% lower than the current price cap. Additionally, alternative options like tracker tariffs, which fluctuate based on wholesale energy prices, offer flexibility in response to market rate changes.
As winter approaches, there are additional financial aids available, especially for the elderly or low-income households. Eligible individuals may receive a £150 discount on their electricity bill through the Warm Home Discount scheme, applied directly to their energy account or as a voucher for prepayment customers. Pensioners born before September 22, 1959, could qualify for Winter Fuel Payments of up to £300, although repayments are required for those earning over £35,000 through the tax system.
Furthermore, Cold Weather Payments of £25 are issued during prolonged periods of freezing temperatures, providing assistance for multiple cold spells. Simple energy-saving habits such as turning off standby appliances, avoiding overfilling the kettle, and adjusting the thermostat by just one degree can lead to significant cost reductions.
In case of financial difficulties, contacting the energy supplier promptly can lead to support options like payment plans, breaks, or manageable debt repayments. Vulnerable customers may benefit from signing up to the Priority Services Register for advanced notice of power cuts, emergency support, and meter reading assistance.
Inspecting the home for draughts and sealing them before winter can prevent heat loss and enhance comfort. Affordable solutions like draught excluders under doors can be effective in maintaining warmth. Draught-proofing measures, estimated to save £85 annually, may be complemented by assistance programs such as boiler grants or insulation support through the Energy Company Obligation (ECO) scheme.