MILLIONS of Brits will face higher heating bills from January thanks to the new energy price cap.
Ofgem, the energy watchdog, has confirmed that the new price cap will rise by 1.2% from today, January 1.
For an average household with typical energy usage, this means bills will rise from £1,717 a year to £1,738.
While that may seem like a small increase, it follows a 10% rise in October, when bills for an average family shot up by £149.
And during the cold months at the beginning of the year, many households will spend more than usual as they put the heating on to keep warm.
Furthermore, energy experts at Cornwall Insight are now predicting that the price cap will rise again in April to £1,785 – up 3%.
It’s important to remember that the price cap doesn’t limit the total amount you’ll pay for your energy, too.
Instead, it sets a maximum price that energy companies can charge per unit, and for your standing charge.
So, if you use more than a typical household, your total bill could be higher than the headline figure.
The cost of electricity is increasing to 24.86p per kWh with a 60.97p daily standing charge, while gas is going up to 6.35p per kWh with a standing charge of 31.65p.
The standing charge is how much you pay every day regardless of whether you use any energy at all, while the kWh prices are what you pay for the gas and electricity you use.
If you’re concerned about escalating costs – there are plenty of things you can do. Here are seven ways to slash your heating bills today.
The Energy Savings Trust says that turning your appliances off at the wall can save you around £45 each year.
All you need to do is switch things off at the plug.
Handy gadgets called standby savers let you turn all your appliances off at once.
Of course, some things will need to stay plugged in, such as fridges, and some digital TV recorders if you want to save your programmes.
Draughts around doors, windows and chimneys are surefire way to lose heat from your home, which can leave you turning the thermostat higher to compensate.
The Energy Savings Trust says that professional draught-proofing of your windows, doors, skirting boards, and floor cracks will save you about £80 a year.
Getting an expert in will cost around £250, so you’ll make your money back in three years.
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.
Alternatively, there are plenty of DIY hacks to do the job yourself.
Make sure you shut doors within your house to keep heat in the rooms you’re using as well.
Switching from halogen to LED will save you up to £4 a year per 50-watt lightbulb, and £3 a year for 35-watt bulbs.
When you think about how many lights there are in your house, the savings soon stack up.
Turning off the lights in rooms you’re not using will also save you cash, although this is likely to be less than £10 a year.
There are two important hacks to reduce the cost of running your washing machine – using it at 30 degrees and trying to cut back by one wash a week.
Manage both, and you could save around £24 a year.
Tumble dryers are expensive too – drying on racks instead should save the average household around £50 a year.
Swapping one bath a week for a shower will save you £9 a year according to the Energy Savings Trust’s calculations.
If you can limit your showers to just four minutes, you’ll save an extra £60 annually.
There are plenty of ways to cut costs in the kitchen.
Using a slow cooker is far more efficient than an oven and can save you money throughout the year.
Even avoiding overfilling your kettle could save you £10 a year.
The Energy Savings Trust also recommends having an aerator fitted to your tap, which could save you around £19.
Packing the dishwasher efficiently and reducing your usage by one run a week will save you an extra £12.
If putting on a jumper means you can turn the heating down, it’s a great way to cut costs.
Research from UCL found that for each one degree decrease in temperature between 22C and 18C the average home used about £130 less energy.
Handy gadgets such as programmers that let you set your heating for certain times, thermostats that turn the heating off when it reaches your desired temperature, and thermostatic radiator valves can all help you manage your house’s heating and cut costs.
One of the best ways to reduce your energy bills is to make sure you’re insulating your home properly.
According to data from the Energy Savings Trust you could save:
Insulation can be expensive, although it pays for itself in the long run, but there are lots of schemes and grants to help people on low incomes make their homes more energy efficient.
Contact your energy supplier to see what help is available.
Make sure you’re getting all the help you’re eligible for from the government. Key benefits to check out include:
These are typically paid automatically, but you need to make sure you’re getting the qualifying benefits that give you access to the help.
Use the entitledto calculator to see what benefits you should be receiving.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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