Energy Price Cap increase: Could you be paying less? | Tenant news

Ofgem, the UK’s energy regulator, has confirmed the energy price cap will rise by 4% from 1 October, which could affect some household energy costs over the coming months.

The price cap sets the maximum amount suppliers can charge for each unit of energy and the daily standing charge.

Here’s what you need to know about the changes, how they could affect you and where to look for ways to save money on your energy bill.

What’s changing?

From 1 October to 31 December 2026, the energy price cap will increase from £1,663 to £1,723 a year for a typical household paying by direct debit for gas and electricity. That’s around £5 more a month if this level was maintained for a full year.

That doesn’t mean everyone will pay £1,723. How much you’ll pay will depend on how much energy you use, where you live, how you pay and the type of meter you have.

There is also some good news. From 1 October, VAT will be removed from electricity bills until 31 March 2027. This means some households could see a bigger reduction in their electricity costs, particularly if they use more electricity than gas.

Could you pay less?

The price cap increase will only apply if you’re on a standard variable or other default tariff. If you’re on a fixed-rate tariff, you won’t be affected.

It’s worth checking your current tariff and comparing it with other deals. You can check what your supplier offers, or use a comparison site such as Uswitch to see what other tariffs are available.

Before switching, check how long the deal lasts, whether there are any exit fees, and look at the unit rates and standing charges.

Remember, the amount you pay will also depend on how much energy you use, so keeping an eye on your energy use can help you save.

Small changes in habits such as turning lights off when you leave a room, only heating rooms when needed and avoiding leaving appliances on standby can all help.

Find support

If you’re struggling to pay your energy bills, don’t ignore it. Contact your supplier as soon as possible.

Suppliers must work with customers who are struggling with their bills and may be able to offer support such as a repayment plan or emergency credit.

Citizens Advice also offers a wealth of information and support. Call 0800 144 8844 or visit www.citizensadvice.org.uk/consumer/energy.

************

Have you signed up to the tenant portal, My Habinteg, yet? It’s quick and easy, and gives you access to a full breakdown of your service charges. Sign up now   . And, if you'd like to receive the digital version of tenant newsletter Update, instead of the print version, please email comms@habinteg.org.uk and ask to be added to the mailing list.