MARTIN Lewis' MoneySavingExpert has issued an urgent warning ahead of energy bills rising this winter.
On Friday, the energyregulatorOfgem confirmed the new price cap, which comes into effect on October 1.
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The cap will rise from the current rate of £1,568 a yearto £1,717.
It means the average household paying by direct debt for dual fuel will see their annual bill go up by £149, or around £12 a month - a 10% increase.
But bear in mind the exact amount you pay can be higher or lowerdepending on your usage, and the cap is reviewed every three months.
In this weeks MoneySavingExpert (MSE) newsletter, the team said that this means for every £100 you spend now, you will typically spend £110 from October 1.
Read more on energy bills
This is double what households were paying pre- energy crisis.
Before the energy price shock in 2022,a standard annual bill was £1,084.
The team also warned that experts are predicting that bills will rise again in January 2025.
It's important to note though that the price cap is not a limit on the overall amount people will pay for theirenergy.
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Instead, itcaps the amountthat they pay per kilowatt hour, or unit, forgasand electricity.
The figure is calculated based on whatOfgem thinks an average household will use.
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This is calculated assuming that a typical household uses 2,900 kWh of electricity and 12,000 kWh of gas across a 12-month period.
Those who use less will pay less, and those who use more will pay more.
MSE said households should consider fixing their energy bills as, with the cap set to rise again, it is likely you will save over the next 12 months.
Fixed deal offers move up and downbased on the current supply that energy firms can get based on the current wholesale rates.
Earlier this month, several energy firms withdrew their cheapest fixed-rate deals, which could have saved customers hundreds of pounds.
But there are still a range of deals available.
The Sun has rounded up thefixed energy tariffs that are cheaper than the price capand could save you money this winter.
The cheapest year-long fixes on the market right now are about 7% less than the new October price, according to MSE.
How to save on your energy bills
SWITCHING energy providers can sound like a hassle - but fortunately it's pretty straight forward to change supplier - and save lots of cash.
Shop around -If you're on an SVT deal you are likely throwing away up to £250 a year. Use a comparion site such as MoneySuperMarket.com, uSwitch or EnergyHelpline.com to see what deals are available to you.
The cheapest deals are usually found online and are fixed deals - meaning you'll pay a fixed amount usually for 12 months.
Switch -When you've found one, all you have to do is contact the new supplier.
It helps to have the following information - which you can find on your bill - to hand to give the new supplier.
- Your postcode
- Name of your existing supplier
- Name of your existing deal and how much you payAn up-to-date meter reading
It will then notify your current supplier and begin the switch.
It should take no longer than three weeks to complete the switch and your supply won't be interrupted in that time.
Changes to standing charges
Last year, Ofgem started a review of standing charges and on Friday, it has published the results on ways to reduce the charge for customers.
Last year, Ofgem started a review of standing charges and today it has published the results on ways to reduce the charge for customers.
Ofgem said the options in the paper could reduce the standing charge by between £20 and £100 per year by transferring parts of these fixed supplier costs to the unit rate.
This is the price paid for every unit of energy used.
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The regulator is also asking energy suppliers to offer energy tariffs that have no or low standing charges as well as their current tariffs.
Martin Lewis said: "I've long called for change, so welcome this long-promised consultation on reducing standing charges - though I'm slightly disappointed even the maximum proposed reduction is only £100 per year - but I'll hold judgement until I've read the consultation in full."
What energy bill help is available?
THERE'S a number of different ways to get help paying your energy bills if you're struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don't think you can afford, speak to them again to see if you can negotiate a betterdeal.
Severalenergy firms have grant schemesavailable to customers struggling to cover their bills.
But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circ*mstances.
For example,British Gasor Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don't need to be a British Gas customer to apply for the second fund.
EDF, E.ON,Octopus Energyand Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerablehouseholds, such as those who are elderly or ill, and some of the perks include being given advance warning ofblackouts, freegassafety checks and extra support if you're struggling.
Get in touch with your energy firm to see if you can apply.
