Your energy questions answered

Every three months, energy regulator Ofgem announces the ‘energy price cap’ – the maximum amount your energy supplier can charge you for each unit of gas and electricity. This price goes up and down depending on how much energy costs on the wholesale markets and how much it costs to produce (though other factors can have an impact too).

One the day of the announcement, I took part in 17 TV and radio interviews about the price cap and I’ve been flooded with enquiries from readers. So in this week’s column, I’m going to answer your questions. Keep them coming!

The price cap in figures

The average dual fuel bill (gas and electric) goes up by 13 per cent to £1,862 a year. That’s a £221 increase or just over £18 a month

• Ofgem measures energy usage in ‘kilowatt hours’ (kWh) or units. Gas is now capped at 7.33p per unit and electricity at 26.11p.
• Prices are up by 5 per cent for electricity and 24 per cent for gas.
• Ofgem says we are using less energy now, so under their new measures the average bill is £1663 – though the price increase is still more or less the same.
• Overall, energy bills are around £600 more expensive a year than they were five years ago.

Why is gas more expensive than electricity?

According to Ofgem, wholesale gas prices have increased by a whopping 28 per cent in the last three months. There’s also a lot more competition for these resources. Gas is also used to generate electricity, but we have a range of other resources too, like renewables and nuclear.

Do I get a discount for paying by direct debit?

You do, though it varies. For most people it’s around 8 per cent off the bill.

How do I fix a deal?

It’s still possible to ‘fix’ a price per unit of energy for a year (or longer). If you can find a deal that fixes the price under the current (lower) price cap, snap it up! You can fix a set price, have a ‘variable’ fix that stays a set percentage under each price cap (though this could go up) or even reduce your standing charge if you don’t pay much on energy. Check out comparison sites like MoneySavingExpert or MoneySupermarket for more info. Always ask about the exit fee – what you pay to leave the deal early.

What about my current deal?

If you’re on a variable tariff it should say on your bill. Call up and ask what your energy supplier’s cheapest tariff is and see if you can switch straight away if you don’t want to change suppliers.

Can I go to another supplier if I have an energy debt?

Potentially, though if the debt is over 28 days old you will be asked to pay it off. Some suppliers may allow you to transfer it over though. And you can ask for a payment plan if you can’t afford to pay the whole debt because money is tight.

How do I know if my bill is right?

Around four million smart meters aren’t sending readings correctly. So check your bill for the letter ‘E’ after your unit use. This means the bill is estimated. If your unit usage has increased but your lifestyle hasn’t, that also suggests a problem.

How do I cut my energy bill?

If you can’t afford your bill, don’t stop using energy – contact the firm and ask what they can do to help. But if you want to save some cash, the Energy Saving Trust has loads of tips. In hot weather, it should only cost around 15p to have a pedestal fan running for 8 hours btw!

How do I make a complaint?

Tell the business you are making a formal complaint and ask for a response in writing. If you are still unhappy, the Energy Ombudsman can help. The ombudsman is a free and impartial alternative to courts.

Martyn James is a top consumer rights campaigner, broadcaster and journalist. For more articles from Martyn, visit this link.