The power worth cap has fallen – why are my payments rising?
Power costs have been on the forefront of most individuals’s minds for the final 12 months or so, with payments hovering and the price of residing reaching a 40-year excessive. So, it undoubtedly brings some reduction to be taught the power worth cap has lowered.
Yesterday, power regulator Ofgem introduced the worth cap was being lowered by £999 from April, with many hoping these decreasing prices can be the sunshine on the finish of the tunnel after the turbulence of earlier months.
The present power worth cap stands at £4,379 per 12 months, and can scale back to £3,280 for the typical family from April 1st. This can be a 23% discount, music to the nation’s ears. This displays the autumn in latest wholesale costs.
if the power worth cap goes down – why are our payments going up?
Effectively, the present Power Value Assure (EPG) set out by the federal government, has stored the cap for households at £2,100 yearly. On prime of this, the tip of the £400 power assist fee, paid in six instalments of £66 and £67, will finish come April.
So, with this authorities assist ending without delay, households will likely be required to pay a mean of £500 extra a 12 months as the results of this assist decreasing, regardless of the worth cap decreasing. This implies prospects will likely be paying round 20% extra on their payments as the federal government’s EPG turns into much less beneficiant.
Danni Hewson, AJ Bell head of economic evaluation, feedback:
“The irony received’t be misplaced on many who at a time power costs are lastly falling from their uncomfortable peak thousands and thousands of households throughout the UK will discover themselves paying extra. Persons are nonetheless protected to a level by the federal government’s power assure, however from April it is going to be a lot much less beneficiant.
“So as to add insult to harm the welcome low cost that’s been popping into individuals’s accounts each month additionally ends on the identical time and brought collectively there will likely be loads of households hoping for a really delicate spring.”
What if I can’t pay my power payments?
If you’re at the moment experiencing monetary problem and can’t pay your payments or suppose you’ll be unable to pay them when the EPG ends, it is very important attain out for assist as quickly as doable.
Firstly, it is very important be direct and clear along with your power supplier. They may be capable to present assist and steerage and it’s the finest place to start out. Charities akin to StepChange and Turn2Us assist individuals throughout the UK, giving free, neutral recommendation, in addition to direct assist.
Citizen’s Recommendation can be an excellent software which provides steerage and recommendation on many matters, from power payments to council tax. Test it out right here.