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| What is the energy price cap and how high will bills go? | What is the energy price cap and how high will bills go? |
| (about 16 hours later) | |
| UK households will find out how much their bills will rise when the new energy price cap is announced on Friday. | |
| The average annual bill for gas and electricity could reach £4,650 in January when the cap is next reviewed, according to analysts Cornwall Insight. | The average annual bill for gas and electricity could reach £4,650 in January when the cap is next reviewed, according to analysts Cornwall Insight. |
| However, plans to reduce bills for households who use less energy during peak times are expected in early September. | |
| What is the energy price cap? | What is the energy price cap? |
| The price cap is decided by Ofgem, the energy regulator, and is now reviewed every three months. | |
| It doesn't limit your total bill, but sets the maximum price that energy companies can charge households on a standard variable tariff for each unit of energy they use. This is known as a kilowatt hour (kWh). | |
| Ofgem bases the cap on how much energy companies have to pay the firms which produce the electricity and gas they supply to customers. | |
| It calculates how much a household which uses the average amount of energy will have to pay over a 12-month period - assuming they pay by direct debt. | |
| Households which use comparatively more energy will face higher bills, while those who use less pay less. | |
| Customers who don't pay by direct debit or who use prepayment meters pay more for the energy they use. | Customers who don't pay by direct debit or who use prepayment meters pay more for the energy they use. |
| The price cap applies in England, Scotland and Wales. | |
| Energy prices in Northern Ireland are controlled separately, but have also increased sharply. | |
| How high might bills go? | How high might bills go? |
| In April, Ofgem raised the price cap by an unprecedented 54% - meaning average bills rose to £1,971 a year from £1,277. The average bill for the 4.5 million people on prepayment meters rose £708 to £2,017 a year. | |
| Bills for direct debit dual-fuel customers could go up to £3,554 when the price cap for October is announced, Cornwall Insight says. | |
| It expects their average bill to increase again in January, to £4,650, or £388 a month, compared with the current £164 a month. | |
| However, Ofgem has urged people to treat predictions of future price cap levels with "extreme caution". | However, Ofgem has urged people to treat predictions of future price cap levels with "extreme caution". |
| How else can I save money? | |
| National Grid, which runs the UK's electricity system, plans to offer discounts to households which use less electricity at peak times. | |
| Under the scheme, which is due to be announced in early September, customers who don't use energy-hungry appliances between 17:00 and 20:00 BST would get rebates for every kilowatt hour (kWh) of energy they save during this time. | |
| According to the Centre for Sustainable Energy, tumble dryers use between 2 and 3 kWh per hour they're on, while ovens use about 2 kWh and dishwashers between 1 and 1.5 kWh. | |
| However, it's thought only households with smart meters will qualify for the scheme, and it can take a few weeks to get one installed. | |
| The Energy Saving Trust says making several small changes to energy habits can also help reduce bills, such as limiting your shower time and air drying your clothes. | |
| Why is the energy cap so high? | Why is the energy cap so high? |
| Energy prices rose sharply when lockdown was lifted and the economy returned to normal. | Energy prices rose sharply when lockdown was lifted and the economy returned to normal. |
| They have also increased because the war in Ukraine has reduced supplies of Russian gas. | They have also increased because the war in Ukraine has reduced supplies of Russian gas. |
| Europe is getting 90% less gas from Russia than it was this time last year, according to David Fyfe, chief economist at Argus Media, which advises energy companies. | Europe is getting 90% less gas from Russia than it was this time last year, according to David Fyfe, chief economist at Argus Media, which advises energy companies. |
| This has pushed up the price of gas across the continent, including in the UK. | |
| Gas and electricity producers raised their prices so rapidly in 2021 that many energy suppliers collapsed. | |
| Ofgem has been increasing the price cap to try and ensure the remainder stay in business. | |
| It says adjusting the price cap every three months, rather than every six months, will reduce instability. | It says adjusting the price cap every three months, rather than every six months, will reduce instability. |
| What's the effect on customers? | What's the effect on customers? |
| Fuel price rises are expected to pitch many people into fuel poverty. | Fuel price rises are expected to pitch many people into fuel poverty. |
| Energy company E.on UK suggests one in eight households are currently struggling to pay their bills, and says 40% may be struggling by October. | Energy company E.on UK suggests one in eight households are currently struggling to pay their bills, and says 40% may be struggling by October. |
| The NHS has warned that rising numbers of people will see their health worsen, unless the government takes further action to limit price rises. | The NHS has warned that rising numbers of people will see their health worsen, unless the government takes further action to limit price rises. |
| The NHS Confederation said many people would have to choose between skipping meals or heating their homes. | The NHS Confederation said many people would have to choose between skipping meals or heating their homes. |
| What help will I get to pay my energy bills? | What help will I get to pay my energy bills? |
| All UK households will be given a one-off £400 discount on their fuel bills in October. | All UK households will be given a one-off £400 discount on their fuel bills in October. |
| In addition, £650 will be paid to more than eight million low-income households who receive benefits or tax credits. | In addition, £650 will be paid to more than eight million low-income households who receive benefits or tax credits. |
| There are further payments of £300 to pensioner households and £150 to individuals receiving disability benefits. | There are further payments of £300 to pensioner households and £150 to individuals receiving disability benefits. |
| Vulnerable families can also claim help through the Household Support Fund, the Warm Home Discount scheme, and hardship funds run by energy companies. | Vulnerable families can also claim help through the Household Support Fund, the Warm Home Discount scheme, and hardship funds run by energy companies. |
| How do I get the £400 energy grant and £650 cost-of-living payment? | How do I get the £400 energy grant and £650 cost-of-living payment? |
| Three million households wait for £150 energy rebate | |
| Ofgem: Getting help if you can't afford your energy bills | Ofgem: Getting help if you can't afford your energy bills |
| What happens if I don't pay my energy bills? | What happens if I don't pay my energy bills? |
| Your supplier must give you a chance to clear your debt through an agreed payment plan. | Your supplier must give you a chance to clear your debt through an agreed payment plan. |
| If you don't agree, you may be forced to move to a pre-payment meter. | If you don't agree, you may be forced to move to a pre-payment meter. |
| In extreme cases, you might be threatened with disconnection. | In extreme cases, you might be threatened with disconnection. |
| What can I do if I can't afford my energy bill? | What can I do if I can't afford my energy bill? |
| How are you preparing for the rise in energy bills and cost of living? You can get in touch by emailing: haveyoursay@bbc.co.uk. | How are you preparing for the rise in energy bills and cost of living? You can get in touch by emailing: haveyoursay@bbc.co.uk. |
| Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways: | Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways: |
| WhatsApp: +44 7756 165803 | WhatsApp: +44 7756 165803 |
| Tweet: @BBC_HaveYourSay | Tweet: @BBC_HaveYourSay |
| Or fill out the form below | Or fill out the form below |
| Please read our terms & conditions and privacy policy | Please read our terms & conditions and privacy policy |
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