We’re all feeling the strain of sky rocketing bills right now due to the energy crisis.
Further price rises and supplier uncertainty have been at the forefront of everyone’s mind.
Since Liz Truss became the new Prime Minister, the nation has been waiting with bated breath to hear her plans for tackling the energy crisis.
Luckily for us, we haven’t had to wait too long.
What is the energy crisis?
Gas and electricity prices have risen to unprecedented highs this year.
Since 2021, we’ve seen supply issues spiralling across the industry, leading to a record number of suppliers going bust.
The situation has only been made more dire following Russia’s invasion of Ukraine, further limiting Russia’s supply of gas to Europe.
Ofcom even urged the new Prime Minister to act “decisively and urgently” in helping UK households tackle the record-high cost of living.
So, on Thursday, 8th September, new PM Liz Truss addressed the nation.
We’ve explained below our breakdown and what to expect in coming weeks.
Major changes for October 2022
“It will curb inflation and boost growth”
Plans have changed – and a price freeze is “guaranteed”.
Instead of an eye-watering 80% increase to the price cap (which would’ve left the average homeowner paying over £3,500 a year), bills have been frozen at £2,500.
This has been introduced as the “Energy Price Guarantee” and it’s set to stay in place for two years.
Our Winter advice
This doesn’t mean every household will face a yearly bill of £2,500 – this is just the cap on what firms can charge customers.
We understand this new price freeze still isn’t welcome news to everyone, but it does mean you can take steps to lower your usage and your bill.
Our advice:
- Take a meter reading. If possible, arrange for a meter reading to be taken as soon as possible – ideally on September 30th! Doing this before the changes come into effect means you won’t be charged for units you’ve not used
- Invest in energy-efficient appliances. Investing now in upgrades like LED/Smart bulbs, new windows, or even a boiler servicing, will save you in the long run
- Speak to your energy supplier. If you’re worried about your payments, or think you’re at risk of falling behind, speak to your energy supplier directly
- Look to reduce your other bills. We’ve got every broadband and mobile deal on the market in one place for you.
We’ve helped countless other bill payers like you save hundreds of pounds per year by switching.
