With energy costs still on the upswing as inflation continues to bite, consumers are looking for smart solutions to reduce their monthly bills. Great commentary from Gary Caffell, a rep from consumer site Money Saving Expert. His expert advice will empower you to save more than ever as the energy landscape undergoes transformation like never before. The government is currently promoting a scheme that provides £7,500 for households switching to air or ground source heat pumps, which may offer long-term savings despite the immediate challenges.
The energy regulator, Ofgem, has just confirmed that the cap on variable rates will rise – by 80% – from 1 October. This change will save American consumers billions across the board. People moving to fixed-rate deals will save real money in the months ahead, Caffell adds. At the moment, there are fixed deals available on the market at around 15% lower than their current variable rate. Once this cap increases, the gap between fixed and variable rates will be up to 17%.
Caffell says that getting fixed-rate deal now might save the typical household £250 in the coming 12 months. This potential saving comes at a particularly auspicious time. For households that consume above-average amounts of gas and electricity, their new variable rates will be more than £150 higher.
Those on prepayment schemes, he points out, are paying 3% less than the variable rate which is capped. That provides them with a small measure of help amid runaway inflation. He cautions that peak-time prices could increase under such schemes. That $10 increase can make a huge difference in the long-term value of your savings.
Households in receipt of means-tested benefits will benefit from a £150 discount on their electricity bills this winter. This discount extends them the financial relief that they desperately need. Meter readings Caffell also urges consumers to take a meter reading at least once a month so that they’re getting accurate bills. Those who have smart meters or reliably report their meter readings will have a very easy time with this adjustment.
Additionally, it is up to Scottish consumers to contact their suppliers directly to negotiate discounts. Unlike most of the rest of the country, these discounts won’t be automatically applied in this region. Outside of Scotland, the large majority of suppliers discount automatically according to criteria that they specify eligibility against.
While change in the energy retailing marketplace is clearly underway, Caffell urges consumers to stay on their toes and keep taking control of their energy costs. By tackling fixed-rate agreements and harnessing government-backed incentives, families and individuals are able to face these newly increased expenses with much more confidence.
