What is happening to energy bills?

Ofgem sets the maximum price suppliers can charge households for each unit of gas and electricity they use. Gas prices will be capped at 6p per kilowatt hour (kWh), and electricity at 24p per kWh. The energy price cap is set every three months and covers 29 million households in England, Wales and Scotland. From April, an average household paying by direct debit for dual fuel (gas and electricity) will pay £1,690 a year, a drop of £238 from the previous cap.

Ofgem will also add £28 to everyone’s bill over a year to cover the cost of dealing with £3. 1bn of debt. Ofgem cap is based on a “typical household using 11,500 kWh of gas and 2,700 kWh of electricity a year and paying by direct debit. Those who pay every three months by cash and cheque are charged more.

Typical annual bill from April will be £1,796, which is £106 more a year than that of a direct debit customer. Household Support Fund had been due to end in March 2024. Chancellor Jeremy Hunt extended it for six months in April Budget. Warm Home Discount scheme continues to offer a discount to pensioners and low income households.

Fuel Direct Scheme can help people to repay a debt from their benefit payments. Energy suppliers must offer customers affordable payment plans or repayment holidays if they are struggling to pay bills. Most suppliers also offer hardship grants. The energy support scheme for businesses, which offered firms a discount on wholesale prices, will end in March 2024.

The scheme offered a larger discount to heavy energy-using sectors, like glass, ceramics and steelmakers.

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