Answering your urgent energy cap questions...
The announcement on Thursday of the 54% rise in the price cap for energy bills will undoubtedly lead to a wave of concern from people worried about making ends meet.
Here is Resolver’s advice and guidance for the ‘most asked’ energy questions:
What is the energy price cap and why is it going up?
The price caps are the limits to which energy firms can charge people on their standard tariffs.
Often referred to as ‘default’ tariffs, these reflect what most people end up paying by default.
Thursday’s announcement confirms the average household bill will increase by 54%, or £693, a year. However, you could end up paying much more than the ‘average’ prices you’ll see in the media as the cap is set per unit – it’s not a cap on the total amount.
The reasons for this are complicated – from the price of wholesale gas to geopolitical conflict, increased demand and even supplying and storing energy.
The price cap comes in to play in April – which is also when other big increases will occur on everything from broadband to tax too.
What help is there for me if I can’t pay my bills?
Energy industry regulator OFGEM’S rules state energy providers must work with you to come up with an affordable plan – but you have to be prepared to give them information about your circumstances.
These solutions might include:
A review of your regular bill payments and debt repayments; Payment breaks or reductions; More time to pay back outstanding debts;
Access to hardship funds, and Suggestions on better tariffs or energy saving methods.
You may have heard of help and support for older people or people who might be vulnerable. The Priority Services Register is a free support service to help all kinds of people who might need this support. Find out more at tinyurl. com/yckekkwb and for our advice go to tinyurl.com/ywp3fxdy
My energy provider recently went bust – what happens now?
OFGEM has a ‘safety net’ for people affected when their energy company goes bust. As soon as this happens, the process will begin.
You are allowed to cancel your direct debit after a transfer to the new provider but in theory, you shouldn’t have to do anything.
Should I switch?
Switching is ordinarily a great way to save money but it isn’t possible right now – and even if it were, the best advice would be to stay put, at least for the time being. And that includes price fixing.
The reasons for this are complicated but Martin Lewis has laid everything out at
moneysavingexpert.com
I’ve been transferred over to a new provider but I’m missing my credit balance – why?
Often it’s just a case of waiting for the new provider to locate the balance. If you don’t hear anything, you can complain and go to the Energy Ombudsman
You could also go to the administrator of the old energy provider. You can find them by searching online. Watch out for dodgy firms offering to help you find your balance for a fee.
I’ve had a new bill and it’s clearly wrong – how can I get help?
Report the meter or readings as faulty. If your supplier has been working off estimates for a long time or not recording readings, you may be able to appeal the bill even if the meter is correct.
See if you have records of your readings and when you gave them too. Photograph your meter when you read it so you have a back up.
Your energy provider may ask you to do daily meter readings for seven days to see if there’s an obvious problem.
Ultimately, it’s for the energy firm to sort out the problem.
How do I make a complaint?
Get help making a complaint for free at resolver.co.uk or there is the free Energy Ombudsman.
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