The energy costs of householders across Britain are increasing after the rise in price caps made by the regulators from October 1. The rise in price cap is about 149 euros for a typical household in England, Scotland, and Wales. Energy suppliers in England, Scotland, and Wales sets the maximum price to consumers according to the price cap. Of Gem provides figures that indicate what will be the future price of electricity and gas if their energy consumption is similar. The important fact is that this is not a regulation on the total bills that a family can get because they pay only for the energy they consume.
The primary reason for the increase in the cap is because of the increase in wholesale prices in the international market caused due to geographical tensions and extreme weather conditions. Ofgems chief executive stated that the dependency on gas is the main reason for the price shift. He advised people to shop around for better deals on energy prices. He suggested finding locally available alternatives with the help of comparison websites so that people can opt for the most reasonable solution. As there is no one standard solution for the householders they have to find what works best for them.
The best option can be found by comparing the monthly payments of a fixed plan versus the expected rise due to the change in price cap. It is recommended to look for plans not longer than 12 months as well as reasonable exit fees. Another recommendation from Ofgems is to utilize the available state benefits like Pension schemes. The persons who utilize the pension plan are entitled to get a winter fuel payment worth up to 300 euros. This support was initially provided to anyone over the state pension age but it was changed by the new government.
People are advised to contact their energy suppliers and work out a solution to avoid the price hike. The Energy suppliers should consider people’s financial position and their energy needs for the future also
How to choose the tariff that suits you?
It should be a personal choice as it differs from person to person’s interests and capacities. There are different types of tariffs available for a person to choose from.
The types of tariffs available are:
Dual fuel: In this tariff option you have to buy both electricity and gas from the same supplier. Here you have the option of dealing with one bill rather than multiple bills.
Variable Tariff: In this option, your bills will fluctuate according to the market.
Fixed-rate Tariff: Unlike variable tariff here the bill is fixed at a rate and it does not fluctuate with the market
Prepayment Energy Tariff: It is a prepaid system of tariff.where you can prepay the amount for your energy requirements.
Economy 7 Tariff: In these tariff plans the tariff of energy depends on the time of use. That is it will be high during peak hours and low during low peak hours.
Selecting your plan wisely will help to reduce the bill amounts.
How to save your energy bills?
Apart from choosing a cheaper plan reduction in energy usage is another option to reduce energy bills. There are multiple ways to reduce your energy consumption. This can help you in the long run. We have tailored some suggestions for your consideration.
Here are some suggestions:
- Reduce your boiler temperature: Reducing the default flow temperature of the boiler from 70-80 degrees Celsius to 60 degrees Celsius will reduce energy consumption.
- Reduce the temperature of the thermostat: A small reduction in the temperature of the thermostat could save your energy consumption significantly
- Replace the Oven with an air fryer: Air fryers heat up easily compared to ovens as it is compact .So the cooking time gets reduced resulting in reduced energy consumption
- Washcloths in low-temperature: As the new detergents work even in low temperatures there is no need for hot water for laundry purposes. So that energy for heating water can be saved.
- Avoid overnight charging of the phone: Smartphones do not require an overnight to get charged. So plugging it overnight is a waste of energy. So charging it for the required time will help reduce the cost of energy consumption
You can follow these minute steps to reduce your energy consumption. This will help you achieve reduced energy charges. Make sure to follow these steps without fail every single day.
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