Ofgem has announced an upcoming increase in energy bills, prompting consumers to explore cost-cutting options. One way to mitigate the impact is by seeking assistance if struggling to pay gas and electricity bills. The Ofgem energy price cap for average dual fuel households is set to rise from £1,720 to £1,755 starting in October.
The price cap imposed by Ofgem does not restrict overall energy costs but limits unit rates for gas and electricity along with standing charges. These standing charges are necessary for maintaining connection to the energy network and vary for prepayment customers and those paying upon bill receipt.
To avoid credit score damage or legal actions from missed payments, it is advisable to contact your energy provider proactively for available support before falling into arrears. Options for assistance may include payment plans, breaks, and manageable debt repayments. Vulnerable customers, such as pensioners or those with health conditions, can enroll in the Priority Services Register for benefits like advance outage notifications and meter-reading aid.
Emergency credit, typically ranging from £5 to £15, is a temporary credit provision by suppliers to prevent energy cutoff when running low on credit. Suppliers may also offer “friendly credit” during specific hours to prevent disconnection. Additionally, hardship funds or grants from major energy firms can help individuals in energy debt without repayment obligations.
The Warm Home Discount scheme provides eligible households with a £150 credit toward their electricity bill and is set to reopen in October. Similarly, Cold Weather Payments of £25 are issued during extended periods of freezing temperatures and will resume in November. Winter Fuel Payments of £200 or £300 for older households are available to eligible pensioners born before September 22, 1959.
Furthermore, support from charities and debt help services can offer guidance for managing energy expenses and debt. For broader debt assistance, individuals can seek advice from various sources, including Reach and its affiliated entities.