Energy bills: Schools 'will be facing pressure' says Quince
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Tomorrow (August 26), the energy regulator Ofgem is set to confirm how much the price cap will rise. Currently, estimates from Cornwall Insights suggest that energy bills will soar to a record £3,582 a year for average households. In light of this, families are desperately looking for ways to calculate how much they will need to pay in the winter months.
On top of Cornwall Insight’s October forecast, the firm believes energy bills will hit £4,266 annually in January 2023.
Between the post-pandemic economic recovery, Russia’s invasion of Ukraine and pressures in the wholesale gas and electricity market, households are experiencing a 40-year high when it comes to inflation and energy bills.
Ofgem’s likely confirmation of yet another price hike will place further pressure on many people who are already feeling the pinch on their finances.
To help those in need, Express.co.uk has created an energy bill calculator tool to help those determine how much their upcoming payments will be.
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How to use the energy bill calculator
It should be noted that this energy bill calculator is an estimation based on the predictions from Cornwall Insight as of August 9.
However, the tool can offer a roughly estimated figure of what their final bill will be when creating their budgets.
Those looking to calculate their energy costs only need to enter the direct debit amount that they are currently paying and it will show how much it may increase for October and January.
Many factors affect how much a person’s energy bills will be, with those using the most gas and electricity more likely to pay more.
Some households may also have built up credit on their energy bills in recent months, which will be applied to their bill and reduce their costs.
An estimated 24 million households are on a standard variable rate tariff and will be impacted by tomorrow’s price cap announcement by Ofgem.
Those on a standard variable tariff have yet to be fixed onto a set deal on their energy bills.
Stephen Murray, an energy expert at MoneySuperMarket, has called for more financial support for households in light of the pending price cap hike.
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Mr Murray said: “This week’s expected increase to the price cap will pile more pressure on already stretched household finances.
“Our research highlights that nearly half of Brits are either already in debt or expect to be in debt to their supplier this winter and it’s very worrying that one in six are already using payday loans to pay their energy bills.
“We echo the calls for more support to help people through this crisis – especially the most vulnerable.”
The financial expert also shared advice to those concerned about how they will afford to keep the lights on this winter.
He added: “We’re in a situation where there are no cheaper energy deals that will help people save money on their energy.
“But what we can do is help households prepare and find savings in other places so they can try to manage this difficult time as best they can.
“When it comes to preparing for autumn and winter, start now. If you pay for your energy by cash or cheque, call your supplier and find out how much you can save by switching to Direct Debit.
“Not only can it save you money, but it will help spread out your payments over a year rather than peaks in bills in the winter months. If you haven’t got a smart meter, get one so you can use the in-home display unit to see how much energy appliances use and real time costs.”
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