Energy bills rise today for millions despite price guarantee – will you pay more? | Personal Finance | Finance
The Energy Price Guarantee was widely welcomed as a Government initiative to attempt to stop Britons paying so much for their energy. It limits the amount suppliers can charge per unit of energy used, meaning an average household should currently pay £2,500 per year.
However, Britons should be aware this is not a cap on their bills rather on the unit price, and so those who use more, pay more.
While the price guarantee will continue in some form until April 2024, from today millions of customers are set to pay more.
Economy tariffs will rise by as much as 8.9 percent from today, creating another price hit for millions.
Economy 7 and Economy 10 tariffs set different rates depending on what time of day a household uses their energy.
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EDF has also written to affected customers to tell them their bills will be impacted from today.
Other energy customers are set to see a rise in their bills, but this will be far less.
According to Money Saving Expert, the change will be “trivial” and range between 0.8 percent and 1.4 percent, depending on how a person pays.
Martin Lewis, founder of the website, said on Twitter: “It’s a poor set up and doesn’t look just.
“It may mean some are better moving to one-price tariffs – flying in the face of getting people to use energy off peak.”
All energy customers should receive a £400 payout to help them with the cost of energy.
Otherwise, Britons are encouraged to cut their energy usage in efforts to save money.
This could be achieved, for example, by turning down the thermostat, changing the flow temperature of one’s boiler, and turning appliances off instead of leaving them on standby.
