Exact date you must make vital energy bill change or risk being overcharged in the New Year
Share:
MILLIONS of energy customers have just days left to take action and avoid being overcharged in the New Year. On January 1, Ofgem's price cap will increase from £1,717 to £1,738 a year, affecting 26 million households on their supplier's standard variable tariff.
![[We've explained how and why you need to take a meter reading below]](https://www.thesun.co.uk/wp-content/uploads/2023/12/RB-COMP-ENERGY-BILLS-1.jpg?strip=all&w=960)
It's important to note that the price cap is not a limit on the overall amount people will pay for their energy. Instead, it caps the amount that they pay per kilowatt hour, or unit, for gas and electricity. So, if you use more energy than a typical household, expect to pay more.
However, there are dozens of fixed energy deals that outperform suppliers' standard variable tariffs, and it takes just five minutes to start saving ahead of January 1. Fixed deals work to protect customers from bill hikes if Ofgem were to increase the price cap in the future.
Customers on their supplier's standard variable tariff see their energy prices change every three months, as these are tied to Ofgem's price cap. However, those who lock into a fixed energy deal are charged the same gas and electricity rates throughout the contract's term.
Fixed deals are available for various periods, typically ranging from 12 to 24 months. Of course, taking out a fixed deal carries a slight risk of you paying more than those on the standard variable tariff if Ofgem's energy price cap were to fall within your deal's term.
