Uswitch comments on the price cap rise

Richard Neudegg, head of regulation at Uswitch.com, said: “The increase that standard variable tariff customers will see on their bills from October only reflects the start of the rise in wholesale energy prices and does not include the full hike that caused the recent crisis.

“There is a retrospective lag to the price cap system which means that people won’t have the current spikes in wholesale costs passed onto them until next April, so we have a ticking time bomb on our hands.

“The Government needs to act quickly to provide better protection for the most vulnerable over the coming months.

“Even before a likely third consecutive hike, the targeted support available to the people who need it the most has been rendered meaningless by this price increase.

“On average, households will see bills increase £139 a year, compared to a Warm Home discount of £140, which itself isn’t even an automatic credit for many vulnerable households.

“In the meantime, the best advice for most people right now is to hold tight if you’re on a standard variable tariff as it’s unlikely there will be a better value deal to switch to, given the current unprecedented wholesale price situation.

“If you are on a fixed deal that’s coming to an end, for most it’s worth letting your deal roll over onto your supplier’s capped standard variable rate too.

“It’s always important to make sure that you are paying the best possible price based on what’s available, so it’s worth signing up to any alerts that will keep you informed about what’s happening in the market.

“Now is the time to stay clued up on how much energy you are using at home and take any opportunity you can to keep costs down.”

Uswitch’s top five tips to keep costs down while keeping your home warm

1. Keep the thermostat down and at a steady temperature. Lowering the temperature by just one degree could reduce your bills by £80 a year.

2. Fit curtains as well as blinds to prevent cold windows from cooling down the room. Remember to close them at night when it's colder and open them again when the sun comes out to let the heat back in.

3. Bleed your radiators regularly, to avoid your radiators having cold spots and leaving you without warmth.

4. Keep your radiators obstruction-free. Objects that are in the way can absorb the heat from your radiator. One of the biggest culprits for this is the sofa.

5. Draught-proofing is a quick and cost effective way to warm up your home. Seals between the door itself and the frame are effective, and you can buy a special 'brush' for gaps between the bottom and the floor.

See here for more information and advice for consumers - who can also call our customer contact centre for support on 0800 688 8557.