Energy customers across the UK may see unexpected bill increases in the coming year, as regulator Ofgem sets the new price cap for suppliers on January 1.
The government launched the energy price guarantee in October of this year, a bill discount scheme that saw the average dual-tariff household pay no more than £2,500.
When the guarantee is extended in April, the average household limit will rise to £3,000 per year.
In January, Ofgem will implement a new price cap, which will result in a slight change in bill discounts, resulting in an unexpected increase in millions of bills.
Energy companies say bill increases will vary depending on where you live, how much energy you use, and how you pay.
But people in those regions on other tariffs will see a hike in prices. A spokesperson for So Energy said all customers affected have already been contacted by email or post.
Bulb
Depending on where you live, some customers will see an increase.
“Depending on where our customers live, their meter type, and how they pay for their energy, some customers will see an increase, some will see a decrease, and others will see no change,” a provider spokesperson said.
Customers will be contacted via email or by letter.
According to the spokesperson, the average prepayment meter customer will pay approximately £2,579.50 per year, while direct debit customers will pay approximately £2,500 per year.
So Energy
Customers with standard energy tariffs in the Eastern, Midlands, South Eastern, and Southern regions will see their bills rise next month.
But people in those regions on other tariffs will see a hike in prices. A spokesperson for So Energy said all customers affected have already been contacted by email or post.
E.On
The company will not pass on the increase in the energy price cap to customers who use prepayment meters. E.On customers will receive letters about what the price cap “means for them”.
Some customers have complained on social media that their bills have risen.
EDF
Some customers’ energy bills will rise in January, according to a provider spokesperson, who stated that all affected customers will be contacted by December.
Those who pay by cash cheque will see a £39 annual increase, while those who use prepayment meters will see a £19 annual increase.
Octopus Energy
The supplier has decided to absorb upcoming increases for its customers while also passing on savings.
Although around 300,000 customers on Economy 7 tariffs will suffer an increase of eight percent in the new year. All customers affected have been contacted already.
Anyone who believes there is an error on their bill can dispute it with their supplier via email or postal mail, but they must include the reason for the error as well as evidence.
Those who are having difficulty paying their energy bills can seek assistance from their provider.
Furthermore, millions of people on benefits and Universal Credit will receive an extra £900 one-off payment, in addition to the Pensioner Cost of Living Payment, and some may be eligible for the Warm House Discount.