Charities warning of tough winter despite price cap fall

Ofgem announced in August that the cap on a unit of gas and electricity would reduce the average bill from £2,074 to £1,923 for the three months from October 1.

This is still more than 50% higher than pre-crisis levels, and the Government is yet to announce any financial support along the lines of last year.

These sorts of measures brought the average monthly cost of energy down to £141 but this year, unless further support is announced, average costs from October to December will rise to £160.

Charities are concerned for those who are using energy prepayment meters (Image: PA)

Speaking to BBC News, Matthew Cole, head of Fuel Bank Foundation, said that those who are on energy prepayment meters would be paying around £250 to top up.

He added: "For prepaying customers, when the money on the meter runs out and there's no means of topping up, so does the energy. No money equals no heat, hot water or fuel to cook a hot meal."

Energy price cap expected to increase again in January

Analysts Cornwall Insight predict the cap will rise again by £73 – or around 3.5% – in January due to increases in wholesale energy prices.

The cap does not set an upper limit on actual bills, and households will pay more or less depending on how much energy they use.

Billpayers are advised to submit meter readings as quickly as possible if they have not done so already.

Billpayers are advised to submit meter readings as quickly as possible (Image: PA)

This is to ensure their supplier can accurately bill them for energy used before and after the price cap drop.

On announcing the latest cap, Ofgem chief executive Jonathan Brearley said that now energy prices are easing, the regulator has allowed suppliers to earn a little more money from customers.

He said: “This means there should be no excuses for suppliers not to be doing all they can to support their customers this winter, and to reinforce this we’ll be introducing a consumer code of conduct which we will look to have in place by winter.”

Your Money Matters

Your Money Matters is a campaign launched by us and our sister titles across Newsquest to help you overcome the surge in the cost of living.

This year has seen a whole host of household price increases — from the energy price cap rise to surging inflation and food prices — costing your family hundreds or even thousands of pounds extra per year.

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The worldwide energy crisis exacerbated by the Ukraine invasion, the financial impact of the Covid pandemic, record inflation figures and a surge in the cost of goods, fuel and travel means we will all feel the pinch.

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