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Energy Price Cap announcement
February 4, 2022
OFGEM have announced today that the Energy price cap will increase by £693 from 1st April. This is a record increase in global gas prices sees energy price cap rise of 54%.
This will be extremely worrying for many people and customers struggling to pay their energy bill should contact their supplier to access the help available.
The energy price cap will increase from 1 April for approximately 22 million customers. Those on default tariffs paying by direct debit will see an increase of £693 from £1,277 to £1,971 per year (difference due to rounding). Prepayment customers will see an increase of £708 from £1,309 to £2,017.
Help available for customers:
- If customers are struggling to pay for energy bills, they should contact their energy supplier as soon as possible. Depending on their circumstances, customers may be eligible for extra help with their energy bills or services, such as debt repayment plans, payment breaks, emergency credit for prepayment metered customers, priority support and schemes like the Winter Fuel Payment or Warm Home Discount rebate.
- Breathing Space Scheme: This is a scheme to give households time to receive debt advice and find a solution to sort out their debt problems. Breathing space will last for 60 days as long as applicants remain eligible during which time all creditors who have been included will be informed and must stop any collection or enforcement activity. Once the breathing space ends, creditors will be able to collect the debt in the usual way.
- The Citizens Advice consumer service can provide advice on how customers can resolve problems with their energy provider. You can contact Citizens Advice via webchat, or by calling 0808 223 1133. For complex or urgent cases, or if a person is in a vulnerable situation, they may then be referred onto the Extra Help Unit.
- The Chancellor Rishi Sunak has also announced that the Government are providing £9.1bn of financial support to ease the strain of rising global energy costs. Up to £350 of support will be available per household via a £200 energy bill discount and a further £150 council tax rebate.