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Latest energy news – everything you need to know

Posted: February 14, 2023

Help with energy costs will be less generous from April onwards, with bills for a typical household going up to around £3,000 per year, although your actual bill will be based on the amount of energy you use.

However, more support is available for the most vulnerable.

What extra support will be available?

From April, certain groups across the UK will receive cash payments to help with energy costs:

  • £900 will go to households on means-tested benefits
  • £300 will go to pensioner households
  • £150 will go to people on certain disability benefits

 

What is the Energy Price Guarantee and how is it changing?

Under the current Energy Price Guarantee, a household using a ‘typical’ amount of gas and electricity will pay around £2,500 annually, although many households will pay more.

The guarantee began in October last year and was originally meant to last for two years, before the UK Government announced it would end in April 2023. Energy regulator Ofgem reported that without government support, the average energy bill would have risen to £4,279 in January 2023.

Do I live in a ‘typical’ household?

The £3,000 figure for a ‘typical’ household is based on a Direct Debit customer using 12,000 kWh (kilowatt hours) of gas and 2,900 kWh of electricity a year. If you use more, you will pay more. A kilowatt hour is a unit of energy used to calculate your bill.

However, most households aren’t typical.

Bills are based on how much energy you actually use, which depends on the number of occupants, the type of property and its energy efficiency. The price guarantee applies directly to all households in England, Scotland and Wales.

What is the National Grid doing to reduce bills?

A National Grid scheme running between November 2022 and March 2023 rewards households and businesses using less peak-time electricity.

Not using high-energy appliances such as washing machines in the late afternoon or early evening can generate discounts of up to £100. Customers need a smart meter to sign up for the scheme, which will run on 12 ‘test days’.

If you have any queries regarding your energy bill or what support is available please contact our energy advice team on 0300 123 2640 or email customerservice@hillcrest.org.uk.