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 dwelling reaching a 40-year excessive. So, it positively brings some aid 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 current 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 saved the cap for households at £2,100 yearly. On high of this, the tip of the £400 power assist cost, paid in six instalments of £66 and £67, will finish come April.
So, with this authorities assist ending without delay, households shall be required to pay a median of £500 extra a 12 months as the results of this assist lowering, regardless of the worth cap decreasing. This implies clients shall 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 hundreds of 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 will probably be a lot much less beneficiant.
“So as to add insult to damage the welcome low cost that’s been popping into individuals’s accounts each month additionally ends on the similar time and brought collectively there shall be loads of households hoping for a really delicate spring.”
What if I can’t pay my power payments?
If you’re at present experiencing monetary issue and can’t pay your payments or assume you can be unable to pay them when the EPG ends, it is very important attain out for assist as quickly as attainable.
Firstly, it is very important be direct and clear together with your power supplier. They’ll be capable of present assist and steering and it’s the greatest place to begin. Charities comparable to StepChange and Turn2Us assist individuals throughout the UK, giving free, neutral recommendation, in addition to direct assist.
Citizen’s Recommendation can also be an excellent device which supplies steering and recommendation on many matters, from power payments to council tax. Test it out right here.