The energy price cap is already driving up bills as prices rise by 21% – here's how to slash your costs by £100s now

Under the Government's price cap, energy providers won't be able to charge dual fuel households more than £1,136 a year.

It's thought this will save households on rip-off tariffs around £75 a year.

But MoneySuperMarket says providers are already upping prices in response to the cap and warns that bills could go up further still.

The price comparison website has found that the average price of the top 30 energy tariffs is now £1,042 – 21 per cent (or £178) more expensive than in May when prices stood at £864.

But not only has there been a sharp rise in prices – the number of tariffs available for under £1,000 has also fallen from 89 in April to just four now.

How to cut your energy bills now

Stephen Murray, energy expert at MoneySuperMarket said: “Households can’t control wholesale cost fluctuations, supplier price rises or the price cap. But they can control their own bill and, in order to make savings and bring their prices down, they have to switch.

"If you are one of the 54 per cent of people still languishing on a standard variable tariff, you are almost definitely paying too much for your energy.

"But it’s easy to fix – go online, switch to a fixed rate tariff today, either with a Big Six or emerging supplier, and you will see your annual bills come down substantially, potentially by £200 or more.”

Stephen Murray, energy expert at MoneySuperMarket, said: “The energy market is extremely volatile at the moment and prices are moving all the time, almost always upwards, in a way we haven’t seen for a while.

"The wholesale market is one big driver of this trend, but the soon to be introduced energy price cap is another factor at play and for suppliers, it’s the elephant in the room.

“While prices are rising and getting closer to the level of the price cap, it’s worth noting the latter will not stay at the same level.

"It will almost definitely rise early next year and customers who sit tight now thinking they will be protected will be sorely disappointed.

"The price cap is creating an artificial market, which will still have to reflect market conditions at its next update. That means its level could rise anywhere from £100 to £150."

Households are being urged to act now to see if they can switch and save – you could cut your energy bills by hundreds doing so.

You can also save cash on your electricity bills by cutting your usage with these simple steps.

We revealed earlier this week that hundreds of thousands of pensioners will miss out on up to £300 in winter fuel payments this winter.


We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the Sun Money's Facebook group for the latest bargains and money-saving advice.


Source: Read Full Article