Energy regulator Ofgem has announced that there will be another price increase for those on default tariffs due to record gas prices in the last couple of months.
Default tariffs are the standard plans you’re on if you haven’t taken up any special offers or if any existing discounted tariffs have expired.
Ofgem sets the cap on these tariffs in a way that’s supposed to be fair to both the consumer and the energy providers – it lowered the cap due to lower fuel prices last year, for example.
But now the energy price cap is going up for the second time this year.
From 1 October, the energy price cap will be raised by £139 from £1,138 to £1,277 for those paying by direct debit. For those on prepayment plans, the increase will be even more – by £153 from £1,156 to £1309
The actual amount you pay will vary depending on how much energy you use and who your suppliers are but it’s obviously still a substantial increase, especially with winter on the way when the new cap kicks in.
Ofgem has recommended that those worried about the increase in energy prices should contact their suppliers as they may be able to access extra help such as affordable debt repayment plans or payment breaks, emergency credit for prepayment meters and a £140 bill rebate under the Warm Home Discount scheme.
You might also be able to save by switching energy providers – if you’re already on a default tariff, there shouldn’t be any penalties to do so and you might even be able to get some cashback.
If you are already on a fixed tariff, you won’t be affected by the increase.