From ‘bill splitting’ to how to save £173 – we answer your burning energy questions as bills are set to soar this winter

ENERGY bills will rise to the highest level in three years for millions of households from October 1. Ofgem has confirmed the price cap is going up by £60 to £1,723 a year for a typical dual-fuel home. So what should you do? We put your biggest questions to top experts to help save you money. Millions of households will see their bills surge just in time for winter Credit: georgeclerk We asked experts Alicia Hempsted, top left, Emma Spencer, top right, Sarah Coles, bottom left, and Martyn James, bottom right, to answer all your questions about the energy price cap The energy price cap sets the maximum amount that suppliers can charge for each unit of gas and electricity. Some 34million people are affected by the price cap because they have a standard variable tariff. Neil Kenward, Ofgem’s director general for markets, said: “High international gas prices are continuing to drive energy costs in the UK. “We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter.” Cornwall Insight’s forecast for January also shows energy bills are expected to rise by 9%, which would increase the cap by another £149 to £1,872. But there is plenty you can do right now to soften the blow, or dodge the rise altogether. We asked the experts your eight biggest questions to help you navigate the hike. 1. Am I on a fixed or standard variable tariff, and how do I check? Those on a fixed energy deal – around 11million households – are not affected by the price cap. That’s because these households have signed a contract where prices of each unit of gas and electricity are locked in for a certain period of time – usually a year. That means they are not affected by any changes to the price cap, which is reviewed four times a year. If you are not one of them, you are almost certainly on a standard variable tariff, which is the one the Ofgem price cap applies to. You may also be on a discounted standard variable tariff that tracks the cap but takes a bit off. The easiest way to find out is to check your most recent energy bill or log into your online account – your tariff name will be clearly listed there. Alicia Hempsted, energy expert at MoneySuperMarket, says: “If your deal has an end date or mentions exit fees, you’re likely on a fixed tariff. “If there’s no end date and your prices change in line with the Ofgem price cap, you’re probably on a standard variable tariff.” If your bills are laid out in a confusing way, simply ring your supplier and ask them directly. The easiest way to find out what tariff you’re on is to check your most recent energy bill Credit: PA 2. Should I lock into a fixed deal now, or wait to see if prices drop? The short answer is – do not hang about. You could save around £100 by locking into a fixed deal now, according to Ofgem. Laura Hinton, from MoneySuperMarket Energy, said: “There are still fixed deals available that can help households get ahead of rising energy costs. “For households concerned about what their bills might look like this winter, fixing now could provide certainty, protection from future price cap increases and potentially significant savings.” There are dozens of deals cheaper than October’s price cap. The cheapest is offered by Fuse Energy and costs an average of £1,550 a year. The August 2026 Fixed (18m) V10 tariff costs £173 less than the price cap. Meanwhile, the Fuse Energy August 2026 Fixed (18m) V8 tariff lasts for 18 months and costs £1,574, making it £149 cheaper than the price cap. If you’re happy to lock into a two year deal then the E.ON Next Next Fixed 24m v65 tariff costs £1,611 a year, saving you £112. But beware — not all fixed deals are good ones. Alicia Hempsted, from MoneySuperMarket warns: “The key trap to avoid is focusing only on headline savings. “Always check exit fees, contract length and standing charges, and be wary of deals that look cheap upfront but lock you in for longer than you’re comfortable with.” If you want to leave a fixed energy deal early, then it’s likely you’ll pay a hefty penalty fee. For example, So Energy’s fixed deals come with a £95 charge per fuel to exit early. That means if you pay for gas and electricity, you’ll pay a nasty £190. You may need to leave a fixed energy deal early because you are moving house, or because wholesale prices plummet and you spot a significantly cheaper deal elsewhere that makes paying the exit fee mathematically worth it. As a rule of thumb, consumer group Which? recommends looking for deals that are no longer than 12 months. That’s because energy prices remain incredibly unpredictable. Locking in for a longer period runs the risk of tying you to a high rate if global energy costs drop significantly next year. If you do not want to lock in, Sarah Coles, head of personal finance at AJ Bell, says you can move to a discounted tariff, which will be cheaper than the standard cap – but bear in mind those will still rise in line with it. Currently, one of the most reliable discounted standard tariffs is the E.ON Next Pledge, which guarantees to stay £50 below the Ofgem price cap for a year. 3. Are there any other energy deals cheaper than a fixed deal? Yes, in some cases. Alicia says tracker tariffs – which follow wholesale prices month to month – can work out cheaper than fixed deals. Wholesale prices are the raw costs energy companies pay to buy gas and electricity from the open market before selling it to you. For example, the highly popular ‘Octopus Tracker’ adjusts its gas and electricity unit rates every single day to reflect real-time wholesale market costs. When wholesale prices are low, households on this tariff have historically seen their bills drop by around 20 to 30 per cent compared to the standard price cap – which could equate to a saving of well over £300 a year for an average home. In practise, you still get a normal monthly bill. However, because you need a smart meter, your supplier tracks your daily energy use and charges you the exact wholesale price for that specific day, rather than one flat rate. However, they “come with more risk because prices can rise quickly too”, Alicia says. They suit people who are comfortable with their bills going up and down, and can absorb sudden increases. Beyond tariff type, it is worth checking whether your supplier offers deals such as British Gas‘s PeakSave or E.ON Next’s Pledge tariff, which offer free electricity at certain times of day and could cut your bill without you having to use less energy overall. 4. Why is my gas bill going up more than my electricity? Gas and electricity are charged separately even though they are on the same bill. Unit prices are not the same. Under the upcoming cap, the gas unit price is jumping to roughly 7.97p per kilowatt-hour (kWh), up from around 7.33p. Meanwhile, the electricity unit rate is seeing a much smaller rise, nudging up to 26.32p per kWh. While electricity is fundamentally more expensive per unit, gas has taken the brunt of the percentage increase due to its heavy reliance on volatile international markets. Ofgem says the steep increase in gas prices is the result of ongoing conflict in the Middle East. Electricity isn’t going up as much as gas for a number of reasons. Sarah says that in the past, electricity pricing was closely tied to gas because electricity was priced according to the most expensive method used to produce it – which in the UK was gas. “More recently, efforts have been made to beef up electricity produced by renewables, which means gas doesn’t set the price of electricity as much.” Gas bills are rising at a much faster rate than electricity bills Credit: Alamy 5. I thought the Chancellor promised a £150 cut to my bills – what happened to that? You did get that cut – it just doesn’t feel like it. The £150 saving kicked in on April 1, when then Chancellor Rachel Reeves shifted 75 per cent of Renewables Obligation costs off household energy bills and into general taxation and scrapped the Energy Company Obligation Scheme. To put it simply – the Renewables Obligation was essentially a “green tax” added to everyone’s bills to fund things like wind farms and solar projects. By moving this cost into general taxation, the government took that burden off your direct energy bill. This was reflected in reduced electricity unit rates. Coles said: “It’s not something that’s easy to spot at a time when energy bills are still so high, but you have had the discount.” Sadly, energy bill rises this year will effectively cancel it out entirely. 6. Can my energy supplier automatically increase my monthly Direct Debit before October? Yes, they can – and some will. Suppliers can revise your Direct Debit if they believe it no longer covers your expected usage. However, they are legally required to give you at least 10 working days’ notice before any change is made. Consumer expert Martyn James points out that not all suppliers update Direct Debits at the same time: “Some will only update your direct debit twice a year, so you can easily build up debts or credit balances before they get round to it.” Sarah agrees, adding: “It’s best to see your direct debit as your responsibility and don’t rely on your provider to stay on top of it.” It is well worth staying on Direct Debit regardless – Ofgem says switching from standard billing to Direct Debit can save you around 8%, as many tariffs offer lower unit rates for customers who pay this way. Emma says there are other benefits too: “Payments are protected meaning that you’ll get a refund for any payments made in error, you don’t need to worry about missing payments given they are taken automatically and you can cancel your direct debit at any time.” 7. What should I do if I can’t afford to pay my bills when the increase hits? First, shop around. Switching to a competitive fixed deal or discounted tariff could bring bills back within reach before you even need to seek help. If you are still struggling, contact your supplier as early as possible – under Ofgem rules, energy providers must offer support to customers in financial difficulty, which can include affordable payment plans, a temporary pause in payments, or access to a cheaper tariff. Emma says: “You may also be eligible for help through schemes like the Warm Home Discount or other supplier-led support.” It is also worth checking whether you qualify for any other government assistance. If you are in debt, you can agree a repayment plan directly with your supplier rather than letting the debt mount. The Warm Home Discount is a one-off £150 discount applied directly to eligible, low-income customers’ electricity bills between October and March. Beyond that, many major suppliers have their own hardship funds. For example, the British Gas Energy Trust provides grants of up to £2,000 to help clear arrears – and you don’t even need to be a British Gas customer to apply. You can usually apply for these grants directly through your supplier’s website or by calling their support line. 8. Is it cheaper to buy my gas and electricity from different suppliers? This is a process called bill splitting, but it is usually not worth the hassle. Most suppliers offer a discount for dual-fuel customers anyway – those who take both gas and electricity from the same provider – making a combined deal cheaper in most cases. Suppliers offer this discount because it saves them money on administration. Managing one customer account for two fuels requires less paperwork, fewer overheads, and less customer service time than managing two separate accounts. They pass a small chunk of those savings back to you as an incentive to get all of your business. Emma says: “It can be cheaper to be on a dual-fuel tariff as some suppliers may give discounts to customers who purchase their gas and electricity together.” Alicia added that “in some cases, splitting suppliers can work out cheaper, but it does mean more admin and separate bills.” The only way to know for certain is to compare both options side by side on a price comparison website before you commit.