EDF, Eon, British Gas customers can use this energy calculator to work out bills from October 1
Energy bills will rise from tomorrow (Tuesday, October 1) when Ofgem's new price cap starts. The cap, which changes every three months, had been on a downward trend, hitting a two-year low of £1,568.
However, from Tuesday, the cap will be set at an average of £1,717 annually for a typical dual-fuel household paying by direct debit. This represents an average increase of 10% per household or £149 per year.
The impact of these changes will vary from household to household. Standing charges will remain at current levels, with gas at 31p per day and electricity at 60p per day.
These charges will see a slight increase to approximately 32p per day for gas and 61p per day for electricity. The main change lies in the unit rate, which is determined by usage.
This means that larger properties, due to their higher energy consumption, are likely to face steeper bills, while smaller properties may see a decrease. Gas prices will rise by 14% per kilowatt hour (kWh) and electricity by 10% per kWh.
You can estimate how much your bill will increase from January using our energy bills calculator.
For those paying via pre-payment meter, the price cap level is slightly lower at £1,669 a year, while for those paying upon receipt of the bill, the figure stands at £1,829. Despite the increases, energy bills will still be at least 6% lower than last October when the cap was set at an average of £1,834, £117 higher than this year's figure.
As new restrictions take hold, millions of pensioners are set to lose out on Winter Fuel Payments, ranging between £100 and £300. The benefit, previously available to all over the state pension age, is now limited in England and Wales to those on means-tested support like Pension Credit, with Scotland intending to adopt similar measures.
Ahead of the price increase, the Energy Saving Trust has unveiled two simple steps to make homes more efficient this winter. The Trust has dispelled a widespread heating myth that suggests it's better to keep the heating on constantly at a low temperature.
It warns that “it’s important not to have your central heating running all day if you don't need it”. In a blog on its website, the Trust advises: “Investing in heating controls is the best option for optimising your central heating system. Many homes already have a programmer, room thermostat and thermostatic radiator valves (TRVs).
“If your home doesn't have these, installing them could save you about £95 annually on your energy bills. If you already have a programmer and thermostat, adding TRVs could save you £30 annually.”
Despite common misconceptions, upgrading or fitting new heating controls can be done without the need to replace the entire boiler, simplifying the process considerably.
“Consider new controls if you don't have a programmer, room thermostat, or TRVs. Modern thermostats have more accurate sensors and many smart controls offer additional energy-saving features,” recommends the Energy Saving Trust.
According to heating experts, there's no benefit in turning the thermostat down too low. They recommend a comfortable temperature is usually in the low 20s, but it can be slightly lower if necessary.
Simply lowering your thermostat from 22C to 21C could save £80 per year. The World Health Organisation suggests that the most comfortable temperature range for most people is between 18C and 21C.
The Energy Saving Trust also says thermostats should be positioned correctly in the home to work effectively. They need a free flow of air to sense the temperature, so they should not be blocked by curtains or furniture, or placed in direct sunlight or near heat sources that could give them false readings.
For further advice on maximising your central heating this winter and improving your home's energy efficiency, visit the Energy Saving Trust website.