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26th August 2021

Energy Price Rises

Ofgem have announced a rise in the energy price cap from the 1st of October for both Default and Pre – payment Tariffs.

What does this mean?
The default tariff cap is a limit on the unit rate and standing charge that energy suppliers can charge for their standard variable – or ‘default’ – tariffs. The remainder are on so-called fixed deals, which will not be affected. The rate is set by Ofgem, the energy regulator, and is reviewed twice a year.
Over 1 million households in Scotland are on these Tariffs.

The cap sets the prices that suppliers can charge for each unit of energy, but that does not mean there is a limit to how much people can pay. The more gas and electricity you use, the higher the bill.

The current estimates are typical gas and electricity customer on these tariffs is likely to see their bill go up by £139 to £1,277 a year.
There is a separate cap on pre-payment Tarriffs which has also been increased, it is estimated Pre-payment customers will see an increase of £153, from £1,156 to £1309 a year.

What can we do? Switch!
To avoid the increase, you can compare tariffs from different suppliers to see if you could get a better deal. While the price cap limits the amount suppliers can charge customers on their default tariff, most suppliers offer tariffs cheaper than this. Moving to a fixed rate deal ensures that the price you pay for a unit of energy does not change for the duration of the fixed rate. This means that if your energy consumption does not increase your payments will not increase. Switching online is straightforward: just use an energy comparison site. All you’ll need is your postcode, the name of your current supplier, details of your annual energy consumption and the name of your current tariff (which can be found on any of your energy bills).

Secondly, there are rebates available to low income households to help with their Energy costs, the most notable one being £140 payable through the Warm Home Discount.

If you are struggling with your energy bills, require help to switch supplier or have any questions about the Warm Home Discount, Please contact Sam McCormack by contacting the office on 0141 556 6226.

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