Money Matters: How you could save money on energy bills following latest price cap drop
In this week’s Money Matters column, Wrekin’s debt and energy manager Dan Bebbington explains what’s going on with the energy price cap and the deals currently available which could help you save money on your bills.
It can be hard to stay on top of what our energy use is costing us, with the price cap now changing every three months.
At the start of July, there was a welcome drop in the price cap meaning energy bills should cost around £1,568 a year, a saving of £122 a year – or just over £10 a month – from the previous price cap which had been in place since April.
This is the lowest that energy bills have fallen to since before the start of the energy crisis over two years ago.
However this figure is just an indication of what an average sized household with typical energy usage might be paying, if they pay through direct debit on a dual fuel tariff (that means gas and electricity are paid for together).
The actual amount you pay is determined by your energy use, which will likely be higher if you have a larger home and/or more people in your household. Those who use other payment methods, including pre-pay meters, also pay differing amounts.
Currently, most households are on price-capped tariffs. This is because any better fixed-price deals you may have had previously will have likely expired, and there have been no other deals on offer during the energy crisis.
However we are now starting to see a few deals emerge that might be worth looking into – especially as the price cap is expected to go up again in October.
Although we don’t know exactly what will happen to the price cap each quarter, money saving expert Martin Lewis says deals offering up to 8% more than the current price cap should mean you save money overall across the year.
Before signing up to a new contract, make sure you read all the terms and conditions to ensure it’s the best deal for you and you know what you’re agreeing to.
For example, many deals require you to have smart meters installed if you haven’t already got them, while others come with caveats that you have to take up boiler cover or other products from the provider in order to access the deal.
Currently there are deals available from E.On and EDF which give a commitment to staying below the price cap. These are not technically fixed deals as what you pay will change whenever the price cap does, but are still worth looking into.
Many other suppliers are also currently offering fixed deals, which could save you money over the year and give you certainty that your monthly bills won’t change for a year.
You can go to moneysavingexpert.com for more information on current deals. Wrekin Housing Group customers who need help with their energy costs can contact our Money Matters team.
17th July 2024