MARTIN Lewis’ MoneySavingExpert.com (MSE) has revealed a new calculator which shows exactly how much energy bills will drop by.
From July 1, energy bills will be dropping by roughly 17%.
Martin Lewis’ MSE created the calculator this weekRex
This means that for every £100 you pay now, you’ll pay around £87 in a few months’ time.
It’s good news for households who have been stuck with sky high bills from the cost of living crisis.
Energy regulator Ofgem announced that bills are set to fall by up to £426 for households this summer.
It predicted the price cap has fallen by £1,206 from £3,280 to £2,074 a year and it will cover the period to October 1.
The lower cap will replace the government’s Energy Price Guarantee, which currently limits the typical household energy bill to £2,500.
To help households navigate how much they may pay from July, MSE has created a new calculator.
Billpayers can type in their energy usage and how much they pay each month, plus where they live.
The calculator will estimate what you’ll pay from July 1.
It is only fo those in England, Scotland and Wales and for those on standard tariffs.
If you’re on a fixed deal or Economy 7/10 then it won’t work for you.
Bear in mind the calculator does not factor in any debit or credit on your account and do remember it won’t be 100% accurate.
What is the energy price cap?
The price cap on energy bills was introduced in January 2019 as a way to prevent households being ripped off by their energy suppliers.
It is currently £3,280 a year on average.
But households only pay £2,500 a year on average, as the price is overruled by the energy price guarantee, which is cheaper.
However, this will fall to £2,074 from July when the price guarantee finishes and the energy price cap comes into force.
Because the price cap changes every three months, it means prices could go up or down from October.
It affects around 29million customers on default or variable tariffs, according to the regulator Ofgem.
The cap is calculated based on the wholesale price of gas and electricity.
It also includes allowances for tax, charges paid to the energy networks, green levies and social payments.
The reason it has gone up so much in the last 18 months is partly due to Russia limiting its gas supply to Europe.
But there’s also been high demand from Asia which has seen prices surge.
The UK also imports more than two-thirds of its gas which is subject to global price swings making prices more volatile and likely to rise.
Can I get help with my energy bills?
Yes, energy suppliers do offer support for those who are struggling to pay their bills.
Those on Universal Credit and older legacy benefits are also entitled to cost of living payments worth up to £1,350.
There are plenty of energy grants and schemes open to help you out if you’re struggling.
Ask your supplier what’s on offer and how to apply, or check here:
British Gas Energy TrustBulb energy fundEDF’s energy customer support fundE.on’s energy fundNpower’s energy fundOvo’s debt and energy assistanceScottish Power’s hardship fund
There’s a one-off fuel voucher from your energy supplier if you’re on a prepayment meter.
Councils are also dishing out hundreds of pounds to hard-up families through the Household Support Fund.
If you’re in debt there are plenty of services you can take advantage of and they offer free and friendly advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
Money Advice Service – 0800 138 7777Citizens Advice – 0808 800 9060StepChange – 0800 138 1111National Debtline – 0808 808 4000
They can also help you take the next steps if you need a debt management plan (DMP) to tackle your debt or an Individual Voluntary Arrangement (IVA).
These are agreements for managing multiple debts.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]