Energy Bills on the Rise: What Households Need to Know for 2024

Energy prices have seen another increase as Ofgem’s new price cap takes effect, raising average annual bills to £1,738 for typical users of gas and electricity, which is £21 more than before. Analysts predict further rises, with estimates of a 3% increase anticipated in April, as global wholesale prices remain volatile due to ongoing geopolitical tensions, particularly linked to Russia and Ukraine’s conflict. Although current prices are 10% lower than last year, they are still approximately 50% higher than pre-pandemic levels.

Ofgem encourages consumers to shop around for better deals, as fixed-rate tariffs may provide savings compared to being on the price cap, though consumers risk missing out should prices fall. Campaigners argue for a long-term insulation program to help low-income households manage soaring energy costs.

Energy companies remind users of the importance of submitting accurate meter readings to avoid potential overcharging due to estimated usage. Additionally, community centers offer support and guidance to those struggling with energy bills, as many households now carry significant debt to suppliers, averaging around £3.8 billion collectively.

Practical steps such as managing boiler settings, reducing shower times, and using LED bulbs are suggested to help consumers lower their bills during the harsh winter months.