The power worth cap has fallen – why are my payments rising?
Vitality costs have been on the forefront of most individuals’s minds for the final yr or so, with payments hovering and the price of residing reaching a 40-year excessive. So, it undoubtedly brings some reduction to study the power worth cap has lowered.
Yesterday, power regulator Ofgem introduced the value cap was being lowered by £999 from April, with many hoping these decreasing prices can be the sunshine on the finish of the tunnel after the turbulence of earlier months.
The present power worth cap stands at £4,379 per yr, and can scale back to £3,280 for the common family from April 1st. It is a 23% discount, music to the nation’s ears. This displays the autumn in current wholesale costs.
if the power worth cap goes down – why are our payments going up?
Nicely, the present Vitality Value Assure (EPG) set out by the federal government, has saved the cap for households at £2,100 yearly. On high of this, the top of the £400 power help fee, paid in six instalments of £66 and £67, will finish come April.
So, with this authorities help ending directly, households can be required to pay a median of £500 extra a yr as the results of this help lowering, regardless of the value cap decreasing. This implies prospects can be paying round 20% extra on their payments as the federal government’s EPG turns into much less beneficiant.
Danni Hewson, AJ Bell head of economic evaluation, feedback:
“The irony gained’t be misplaced on many who at a time power costs are lastly falling from their uncomfortable peak thousands and thousands of households throughout the UK will discover themselves paying extra. Individuals are nonetheless protected to a level by the federal government’s power assure, however from April it will likely be a lot much less beneficiant.
“So as to add insult to damage the welcome low cost that’s been popping into individuals’s accounts each month additionally ends on the similar time and brought collectively there can be loads of households hoping for a really gentle spring.”
What if I can’t pay my power payments?
If you’re presently experiencing monetary problem and can’t pay your payments or assume you’ll be unable to pay them when the EPG ends, you will need to attain out for assist as quickly as attainable.
Firstly, you will need to be direct and clear along with your power supplier. They’ll be capable to present assist and steerage and it’s the finest place to begin. Charities similar to StepChange and Turn2Us assist individuals throughout the UK, giving free, neutral recommendation, in addition to direct assist.
Citizen’s Recommendation can be a superb instrument which supplies steerage and recommendation on many subjects, from power payments to council tax. Test it out right here.