Q Will there be more help with energy bills this winter for households? 

A In a word, no. In fact for some people, it unfortunately has the potential to be a little bit worse.  

There is help with energy bills on offer for households struggling with costs this winter, but it’s not as generous as what was in place last year. This help is now squarely aimed at the most vulnerable, which is bad news for those hit by the cost of living crisis who are just keeping their heads above water.  

During the peak of the energy crisis, the government rolled out big schemes offering immediate relief, like the Energy Price Guarantee and the £400 Energy Bill Support Scheme which made a real difference for millions of people.  This was alongside separate cost-of-living payments for those on low incomes. 

But with these programmes all changing and wrapping up, a lot of people are worried about how they’ll manage with their still-high energy bills, especially as the colder months approach. 

One of the biggest changes is undoubtedly the much contested restriction of the Winter Fuel payment which is now being means tested. Means testing, whilst a cost saver that stops unnecessary payments going to people who are financially secure, is a blunt instrument and there will be thousands of vulnerable people who fall through the cracks. 

Ask our experts your money questions

One payment that is remaining is the Warm Homes Discount scheme. This takes the form of a one-off £150 payment that comes directly off your bill. It’s typically applied automatically if you are eligible, but if you are currently on a low income in Scotland, you may need to contact your energy provider directly.  

You could also be in line for the Cold Weather Payment if temperatures dip below a certain level for seven days in a row and you are already in receipt of other qualifying benefits. It’s designed to give low-income households extra financial support when it’s particularly chilly, but since it’s weather-dependent, there’s no guarantee.  

Local councils also have discretionary funds available for those in need. The Department for Work and Pensions have a multi-million pound pot set aside called the ‘Household Support Fund’ which was recently extended an extra six month from 1 October to 31 March.

The fund provides money to local authorities to deliver essential help to the most vulnerable people. You can find out how much your area was awarded at GOV.UK and check your council’s website or call their office to find out what support is available to help household bills including, but not limited to, energy bills.  

A lot of energy companies have their own support schemes available if you fall into debt. Whilst it’s not always an easy process to apply, it’s an avenue worth considering. Providers involved include British Gas, EDF, Octopus, Scottish Power and Ovo.  

Whilst it might feel like there are a lot of hoops to jump through to get the help you need to make it through the winter, it is worth knowing exactly what is available for you, and to vulnerable people you know.  

Now is the time to look at your bills and start taking measures to minimise them, whether through home hacks, switching providers, or pursuing grants and relief. If you are struggling and don’t know where to turn, the first step is to talk to your provider – as tempting as it is to hide from the brown envelopes, they will be able to support you and offer you the most immediate help and advice. 

Vix Leyton is a consumer expert and host of the money saving (and spending) podcast ‘False Economy‘  

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With the coldest winter months fast approaching, energy bills can quickly become a significant financial burden. 

With smart planning and simple changes, however, you can reduce your energy costs and keep your home warm without breaking the bank. 

Here are some tips to assist you.

1. Insulate your home

Proper insulation is one of the most effective ways to reduce heat loss, keeping your home warmer and reducing the need for constant heating. Consider the following:

Loft insulation: Up to 25% of heat is lost through the roof. Installing or topping up loft insulation can significantly reduce this.

Wall insulation: If your home has cavity walls, insulating them could save a substantial amount on your heating bills.

Draught-proofing: Seal gaps around windows, doors and chimneys to prevent cold air from entering and warm air from escaping. Draught excluders, weather stripping and door sweeps are inexpensive and effective.

2. Upgrade your heating system

Boiler efficiency: If your boiler is more than 10 years old, it might be time to replace it with a more efficient model. Modern condensing boilers are more energy-efficient and could save you hundreds of pounds annually.

Smart thermostats: Install a smart thermostat to control your heating more efficiently. These devices learn your schedule and adjust the temperature accordingly, ensuring you only use energy when you need it.

3. Be smart with heating

Turn down your thermostat: Lowering your thermostat by just 1°C can cut your heating bills by up to 10%. Aim to keep your living room at around 18-21°C and bedrooms slightly cooler at 16-18°C.

Use heating zones: If possible, only heat the rooms you use regularly. Close doors to unused rooms to keep the heat where it’s needed most.

Time your heating: Set your heating to turn on 30 minutes before you wake up and off 30 minutes before you go to bed. This ensures warmth when you need it without wasting energy.

4. Maximise natural heat

Open curtains during the day: Let the sunlight in to naturally warm your home. Close them at dusk to keep the heat in.

Use reflective foil: Place reflective foil behind radiators on exterior walls to bounce heat back into the room, reducing heat loss through the walls.

5. Cut electricity usage

Switch to LED bulbs: LED bulbs use up to 80% less energy than traditional incandescent bulbs and last much longer.

Unplug stand-by devices: Devices left on standby can account for up to 10% of your energy bill. Unplug electronics or use a smart power strip to turn them off completely.

Use energy-efficient appliances: If you’re replacing appliances, choose ones with a high energy efficiency rating. They may cost a bit more up-front, but will save money in the long run.

6. Consider renewable energy options

Solar panels: Although the initial investment can be high, solar panels (as discussed in this article) can significantly reduce your energy bills over time. The government offers financial incentives for renewable energy installations, which can help offset the cost.

Government grants: Check if you qualify for government grants or schemes like the Energy Company Obligation (ECO) to help cover the cost of energy-efficient improvements.

7. Monitor and compare energy prices

Switch energy providers: Regularly compare energy providers to ensure you’re on the best tariff. Websites like Uswitch or MoneySuperMarket make it easy to compare deals.

Smart meters: If you don’t already have one, consider getting a smart meter. It provides real-time data on your energy usage, helping you identify opportunities to cut back.

Off-peak tariffs: Some energy companies (e.g. Octopus Energy) – offer cheap off-peak tariffs. These can deliver substantial savings if deployed correctly. Typically overnight rates are much cheaper – so if you run appliances such as washing machines at these times you may be able to cut energy bills substantially. If you have a home storage battery you can charge it at off-peak rates for use at other times when electricity is more expensive.

8. Develop energy-saving habits

Wash clothes at lower temperatures: Washing at 30°C instead of 40°C can save energy and money. Only run the washing machine with full loads.

Avoid using tumble driers as they consume a lot of electricity. Hang clothes outside to dry or use an airer.

Avoid overfilling the kettle: Only boil the amount of water you need. Overfilling wastes energy.

Shorten showers: Reducing your shower time by just a minute can save money on both your water and energy bills, especially if you have an electric shower.

9. Seek financial help if needed

If you’re struggling to pay your energy bills, you may be eligible for assistance:

Warm Home Discount: This is a one-off discount on your electricity bill, usually given between October and March. You’re eligible if you get the guarantee credit element of pension credit or you have a low income and high energy costs. For more details, visit the Warm Home Discount information page.

Winter Fuel Payment: If you were born before 23 September 1958, you could get £200 or £300 to help pay your heating bills. But as from this year (2024/25), only those on pension credit or certain other benefits will be eligible. Visit this government website for more info.

Cold Weather Payment: You may get a payment if the average temperature in your area is recorded as, or forecast to be, 0°C or below for seven consecutive days. Again, only those receiving certain benefits are eligible. See this web page for more info.

Help from the Household Support Fund: This is money provided to councils by the government to assist pensioners and others on very low incomes. You will need to contact your local council to check if you are eligible.

10. Plan ahead

Finally, start thinking about next winter as soon as possible. Energy-saving home improvements made during the spring and summer can help spread the cost and ensure your home is ready for the next cold season.

By taking the steps above, you can keep your home warm and cosy this winter without seeing a dramatic increase in energy bills. Small changes can make a big difference in energy efficiency and financial savings.

As always, if you have any comments or questions about this article, please do leave them below.Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

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The post How to cut your energy bills this winter appeared first on Mouthy Money.

I have broken up with British Gas. For the second time in my adult life.

The first time was in fact years ago when I moved into my first flat in London. I inherited British Gas as an energy supplier from the previous tenant.

This was back in the days before the pandemic and the cost-of-living crisis when energy deals were still (relatively) affordable, and there was a good breadth of deals in the market.

That was why I broke up with them at the time – purely because the energy price they offered was not competitive. We switched to Octopus Energy.

No hard feelings etc, but I do distinctly remember British Gas sending me a ridiculous mess of paperwork which I thought…um…bit much?

Here’s the post I put on Twitter (now X) at the time:

In those heady days we paid around £35 a month to heat and supply electricity to our one bed flat. Oh to have such bills again!

In the intervening years, my wife Ellyn and I have moved out of London, bought a house, got a dog and a baby and such.

Roll forward almost five years to the day, and history has repeated itself.

We bought our home during the midst of the cost-of-living crisis, when energy switching was not a thing, so we (for the second time) inherited British Gas as a supplier from the former owner. We didn’t bother switching, and that was our first mistake.

Now, regular readers may remember I have actually written about British Gas in this column recently. Although I didn’t name check them at the time. Not so lucky today, guys.

Feel free to read it and come back, but to cut a long story short we used more energy than anticipated last winter thanks to the arrival of our son Cosmo. This led to us going into quite a lot of energy debt with British Gas. £500 of it.

After a bit of careful calculation and negotiating, I got them to reduce our direct debit to £165 instead of £200. Job done, I thought.

British Gas strikes back

The story did not unfortunately end there, dear reader.

Every month since I reached that agreement with British Gas, it has attempted to increase our direct debit back above £200. This was despite, as expected, we were quite quickly vanquishing our energy deficit. At the most recent billing we had got it to £325, which had only taken about three months. Great.

Despite that, British Gas would not back down from try to force us to take a higher direct debit. Every month I would receive an email telling us our direct debit was increasing.

This reached a breaking point two weeks ago when this happened yet again. I decided enough was enough.

I called the firm to ask why it kept doing this. It was explained to me that they were simply basing forward charges on what we had previously used.

This was despite the fact that I had made several quite significant changes to our home to improve our energy efficiency and was pretty certain we’d be using a lot less energy moving forward (and as evidenced by our more recent usage).

No, British Gas were determined that I should be paying £200 a month for our energy. In fact, in the most recent episode they increased the direct debit even higher to £210.

The trouble here is that the company had us over a barrel, because we owed £325. Owing this money meant we were not free to leave and switch to a different provider.

We had to pay the debt first.

Fed up with the intransigence of the firm, I decided enough was enough. Despite needing cash for something else (tyres for our car if you must know) I decided to clear the debt and leave.

The ol’ switcheroo

There is good news and bad news in the energy market these days.

The bad news is the price cap has increased again. It has risen 10% from £1,568 to £1,717 per year for an average household usage level.

The good news, however, is that switching is back. We locked in a deal with Octopus Energy (hello old friend) which charges us £139 a month (based on average per-unit usage). Of course, this is still subject to change if we use more energy, but having a bit of surety in our bills (and not paying £210 a month) is a win.

If you want to switch yourself, then try a price comparison site to see what the best deal is. I don’t believe Octopus was the absolute cheapest but having been a customer before I was aware they have quite energy whizzy products and were generally quite good.

Octopus is also nice because it uses our smart meter readings to feed into an app which can tell me day-by-day usage almost immediately. We can track our consumption much more closely and keep on top of it.

I like the fact we can closely monitor usage with the app, and head off potential debt accruing before it gets out of hand.

More from Edmund Greaves

Bad British Gas

This is very much a personal review and experience. I am sure there are literally millions of ecstatic British Gas customers out there. Positively joyous. But I was not.

• I was tired of the fact that they let us run up debt over six months and didn’t lift a finger until we were badly in the red. But you can bet they were proactive as soon as we owed them a decent wedge.

• I was tired of the computer says no attitude that didn’t account for what was clearly a decrease in usage on our part.

• I was tired of doing a monthly dance to get them to decrease our direct debit to a more acceptable level – a level which was evidently bringing our debt down quickly.

• I was tired of having a smart meter that was basically useless to us despite feeding valuable usage data back to the company.

I am sure Octopus will have its own foibles. We shall see.

It gets weirder

As soon as we started our switching process, which was extremely easy, seamless in fact – British Gas started acting like a spurned lover.

I was texted three times in three hours saying it had an “exclusive offer” for me.

They rang me. I got emails. I was even approached by British Gas Twitter bots in the above tweets. It was an absolute bombardment of contact.

In other contexts, this is referred to as ‘love bombing’.

The company has mere hours to get me to change my mind before the switch takes hold, so bombards me with attempts to persuade me not to leave. It is an abysmal thing to do.

The thing that really pains me (and is often something I think wistfully about when it comes to personal finance) is that we are as ever in a fortunate position to have some cash to get out of the situation. Others don’t and so will be at the mercy of this kind of behaviour.

But my counsel, as it ever was with these matters, is do not be afraid to stand up to companies you feel are treating you poorly. They have not earned your good graces or submission to unfair practices.

So goodbye British Gas. It’s not me, it’s you. I was just trying to keep the lights on.

LISTEN: Edmund catches up with Chris as they discuss his energy bills, tipping, and cruise liners in this week’s Mouthy Money Podcast

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The Energy Price Cap in the UK is a regulatory measure designed to protect consumers from excessively high energy bills by capping the price that energy suppliers can charge for each unit of electricity and gas.

Introduced by Ofgem, the country’s energy regulator, in January 2019, the cap primarily affects households on standard variable or default tariffs—those who haven’t switched to a fixed-price energy deal. Its aim is to prevent energy companies from overcharging customers, especially those who are less engaged with the energy market or unable to find better deals.

However, it’s important to understand that the cap does not limit the total amount households pay for their energy.

Instead, it restricts the price per unit of gas and electricity. This means that while the cap offers protection from extreme pricing, your final energy bill still depends on how much energy you use. The more energy consumed, the higher the bill will be, even under the capped rates.

Your questions answered:
Ask our financial experts your money questions

Ofgem reviews the energy price cap every three months, adjusting it based on fluctuations in wholesale energy costs, inflation, and other factors. This system means the cap can rise or fall over time, affecting energy bills.

For example, during the energy crisis in 2021-2022, when wholesale energy prices surged due to supply issues and geopolitical events, the price cap was adjusted upward. Even with the cap in place, many households saw steep increases in their bills, highlighting that the cap offers some protection but doesn’t fully shield consumers from market volatility.

In 2024, the cap has come down slightly compared to the heights of the energy crisis, but prices remain significantly higher than they were in earlier years. While the cap has provided a safety net during periods of instability, it does not guarantee affordability, especially for households with higher energy needs.

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Q My energy provider contacted me recently to say we should adjust our direct debit because we are using more energy and this was putting our energy bills in arrears. But I’ve just seen that the price cap has come down again so shouldn’t my bills come down too?   

A In recent years some energy companies have exploited direct debits so outrageously, that there are calls to reform the entire system.

Your provider might be suggesting you should change your direct debit, but in practice they are saying they will… unless you object. 

The problem with direct debits is that they allow businesses to change the amount of money you pay and when you pay it.  

According to the Direct Debit Guarantee, the business has to give you at least 10 working days notification of any changes it wants to make, but this is often done by email, which means most people don’t notice until it’s too late.

It would be very easy to send a few texts instead which would at least warn people about the size of their energy bills, but strangely, there’s a total lack of interest in doing so from most energy businesses. 

But I digress. The number one question that people ask me about energy bills at the moment is: why are my bills going up when the prices are coming down? 

The reasons for this are complicated, but might include one or a combination of the following factors: 

1. Your meter is giving faulty readings. 

2. You’ve significantly changed your energy consumption. 

3. Your actual energy usage has been disguised by credit you’ve built up on your account reducing your bill over winter. 

4. Your current energy agreement has ended and you’ve ‘defaulted’ on to a standard tariff, 

5. The business has been relying on estimated readings, but now they have an actual reading, they have ‘back billed’ you for your actual energy consumption. 

6. There has been a billing error. 

That’s quite a lot to contend with, but ultimately, it’s for your energy provider to establish what’s going wrong with your bill, but there are a few things you can do too. 

Energy bills are ridiculously complicated, so it’s hard to know if they are right or not. But here are a few pointers. 

The cost of your bill will have increased over the last two years because of the crisis in the energy wholesale market. But what you need to look for is an increase in the units of energy you use. This is especially important if you haven’t been using more energy.

Ask our experts your money questions

Start by going through your last two years of bills. Work out roughly how much you’re using on average for each billing period. If there’s been an inexplicable increase, you have a valid complaint. 

You can also ask your energy provider to clarify in plain English why things have changed. Ask them things like; why your energy usage is higher, if they are relying on estimated readings, if they are billing you for energy used over a year ago and if you’re on the cheapest tariff. 

If your energy company sends you a new bill that covers a period older than 12 months, they should not be charging you for it. This is known as ‘back billing’ and is explicitly forbidden by regulator Ofgem.  

However, if you have an existing debt that you were correctly billed for at the time, the energy firm can pursue it for up to six years.   

If you have a smart meter, it’s estimated that just under four million of them aren’t working properly. Smart meter problems are the second biggest area of complaints after billing disputes. Problems can arise from technical problems with the meter or the data not being transmitted correctly. 

To resolve the problem you will usually be asked to take meter readings every day for around a week to assess the problem. I’d recommend photographing your meter readings so you can prove they are correct. 

The energy firm is obliged to identify and correct the situation with the meter. This could involve sending out an engineer to assess the meter’s performance.   

Energy businesses are obliged to address all complaints in writing unless you agree otherwise. Their ‘final response’ should set out what they’ve done to resolve your complaint and any compensation that they might be offering. This should also tell you about your right to go to the Energy Ombudsman. 

Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist. https://martynjamesexpert.co.uk/articles/ 

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The post Why aren’t my energy bills going down?  appeared first on Mouthy Money.

Question: Has energy switching started again and is it a good idea to lock in a fixed-rate tariff now, before the winter?

Answer: Historically the best way to save money on energy bills was switching. Yet after bills went through the roof, it no longer made sense to change providers.

Earlier in the year, most energy experts suggested that from July the price of our energy bills would drop significantly, which would mean finally – after two years – we might be able to switch providers to get a better deal.

Yet while prices have dropped, they certainly haven’t dropped to competitive levels. And that means moving to another provider won’t get you a better deal. In fact it might actually cost you money if you get locked in to a contract and miss better deals in a few months’ time.

However, there may still be some options for you. Casting an eye over the deals available at the moment, your current provider might be offering a better deal exclusively for its existing customers.

Why would they do this you ask?

Well, it makes sense to get you to commit to a good deal now for a year or two rather than jump ship at the first sign of dropping prices.

Of course, the other reason for switching is if you’re getting a rubbish service from your current energy provider. And many, many people are doing this for a variety of (worrying) reasons.

If you do switch because you hate your current provider, check that you’re not locked into the new deal for too long – and what the exit fees are if you want to bail early.

Martyn James is consumer rights expert and campaigner with over two decades of experience covering every business sector in the UK, from finance to utilities.

As a broadcaster and presenter, he appears on all the national television channels and is a regular guest and presenter on Rip Off Britain, Morning Live and The One Show, as well as commentating on breaking stories for all the news channels and bulletins. As a journalist, he has written for all the national newspapers and regularly features in the news.

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At long last, we’ve got a bit of good news to look forward to amidst this cost of living crisis!

Although, don’t set your expectations too high just yet as there won’t exactly be a huge reduction in energy bills.

But, at the very least we can expect to keep a little extra cash in our pockets come October!

So, how exactly did we come to have an energy crisis in the UK and where are analysts assuming we are going next?

What happened in the first place?

The prices of almost everything started getting out of hand during the pandemic due to supply chain issues, energy prices being one of the biggest culprits of all.

In 2020, as the UK was a net importer of energy, we didn’t produce enough energy resources at home to keep the country running. Therefore, we had to get some of our energy from elsewhere which left us at the disposal of price fluctuations due to circumstances in other countries (e.g. the Ukrainian war).

Ofgem, the UK energy’s regulator, sets energy price “caps” which determine the maximum amount energy providers can charge their customers for each unit of gas and electric. The word cap can be deceiving as it doesn’t mean there is a maximum amount your bill can go to.

If you use more energy than what is considered the “average” (what is average, anyway?) households energy use, you would have to pay more money. Same vice versa, if you use less energy than the average, you would pay less than the energy cap.

At the start of 2023, even though Ofgem set the energy price cap to £2,500 per year for the average energy-using household, the average energy bills were actually an eye-watering £4,279 per year!

Thankfully the government assisted households and businesses with these bills by putting in place the Energy Price Guarantee (EPG) and the Energy Bills Support Scheme (EBSS).

Where are our energy bills now?

Currently (as of September 2023), Ofgem have set the energy price cap at £2,074 per year, or roughly £173 per month.

Come October 2023, this will be changing for the better whereby the energy price cap will reduce to £1,923 per year, or approximately £160 per month. This is equivalent to an average reduction of 7% in energy bills per year¹.

What are analysts saying about the future?

The positive news is the latest reduction of the energy price cap is the third one in a row³.

This is certainly a sign that generally wholesale energy prices are going in the right direction. However, analysts do expect that these prices may creep up a bit in the months to follow, before settling again. According to Uswitch, the energy price cap may take the following trend:

• From a £1,923 price cap in October 2023
• An increase to £2,033 in January 2024
• A decrease to £1,964 in April 2024
• A further decrease to £1,917 in July 2024

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Struggling households have been menaced by energy firms forcibly trying to install prepayment gas meters. 

In February The Times newspaper exposed energy firms using bailiffs to break into customers’ homes and forcibly install prepayment meters for energy bills. 

It found firms such as British Gas “routinely” sent debt collectors to the homes of customers, who then broke into those homes, to install pay-as-you-go energy meters. 

The investigation found debt agency Arvato was using the strong-arm tactic to target vulnerable customers who were failing to keep up with their energy bills amid a massive increase in prices over the past 18 months.  

Responding to the investigation, a spokesperson for energy regulator Ofgem commented: “These are extremely serious allegations from The Times. We are launching an urgent investigation into British Gas and we won’t hesitate to take firm enforcement action. 

“It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so. 

“We have launched a major market-wide review investigating the rapid growth in prepayment meter installations and potential breaches of licences driving it. 

“We are clear that suppliers must work hard to look after their customers at this time, especially those who are vulnerable. The energy crisis is no excuse for unacceptable behaviour towards any customer, particularly those in vulnerable circumstances.” 

Force fitting under warrant is the practice of forcibly entering someone’s home using a court order against them. Companies obtain these warrants when households owe significant amounts to energy providers.  

The practice has widely replaced cutting off energy supplies completely which is seen as even more inhumane. Debt collectors use locksmiths to force entry when access is not given by household occupants. The Times investigation found debt collectors boasting about “crying” single mothers. One agent was quoted saying: “If they go in and they see an elderly lady, they’ll be like, ‘oh an easy job for me.’ “ 

The Government later published data which found that 94,000 prepay energy meters were forcibly installed “under warrant” in 2022. British Gas, OVO Energy and Scottish Power were the worst offenders, accounting for around 70% of the forced installations.  

Energy security secretary Grant Shapps comment that the figures “give a clear and horrifying picture of just how widespread the forced installation of prepayment meters had become, with last year seeing an average of over 7,500 force-fitted a month. 

“Prepayment meters are right for some people, so I do not want to ban them outright, but I do have concerns that companies have not been treating their customers fairly, over an already difficult winter during which the government has tried to help families by paying around half the energy bill of the average household. 

“After my calls for change, I’m pleased that suppliers have made their actions public and agreed to put a stop to forcing prepayment onto vulnerable customers for good – but this cannot happen again. 

“I will be watching Ofgem’s ongoing review closely so customers get the support they need – and those vulnerable consumers who have wrongly suffered forced installations get the justice they deserve in the form of redress.” 

Regulator action 

The Times’s investigation provoked an uproar which has led to swift Government intervention and regulatory action.  

Ofgem immediately ordered all energy suppliers to suspend the practice of forced prepay meter installation. But this was set to expire on 31 March after a review and the practice has not been banned outright.  

The regulator requested all energy firms review forced installations and remove the devices in cases where the meter was installed without good reason.  

British Gas for its part said it would stop using third-party firms to carry out forced installations but stopped short of ending the practice completely.  

As of 18 April, all energy suppliers in the UK have now signed up to a new code of practice for involuntary prepay meter installation.  

What other options do I have? 

Energy prices have been leading the charge of higher inflation in the past 18 months. This has meant what used to be a fairly open market for switching provider has essentially come to a standstill. 

But if you’re unhappy with your energy provider it is still possible to switch away. However it is essential to ensure you don’t leave owing money or with any significant bill deficit (particularly likely after winter). 

If you’re struggling to make payments then it is important to be proactive and talk to the provider about how much you pay each month and whether they might be able to lower your regular direct debits or other bills. 

The hope now is that energy bills should start to fall over the coming months. But they will remain higher than historic levels for the foreseeable future.  

Most important then is making sure you are able to pay sustainably, reduce your usage where possible and seek help if you need it, either through Government information and aid or speak to organisations such as Citizens Advice to help you better manage your finances.  

What British Gas and Arvato say 

Spokespeople for the firms told The Times at the time:  

British Gas: “Protecting vulnerable customers is a priority. The information The Times has shared with us is deeply concerning and we’re taking these allegations seriously.” 

Chris O’Shea, chief executive of Centrica (owner of British Gas), told BBC Radio 4 the findings in the investigations were “completely unacceptable…There is nothing I can say that can express the horror I had when I heard this.” 

Arvato Financial Solutions said it “acts compliantly at all times in accordance with the regulatory requirements” and the findings did not represent the company’s views or its official guidance on how to interact with customers. 

A spokesperson added: “If there has been any verbal or any other type of misconduct by individual employees, we deeply regret it.” 

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Mouthy Money’s regular contributor, Nick Daws, offers his experience of smart meters and why he still recommends them.

Energy bills are a hot topic at the moment (pun definitely intended). 

So today I thought I’d discuss one way you may be able to help keep them under control.

Of course, I’m talking about smart meters. These have been rolled out by the energy companies over the last few years at the behest of the government.

They provide a real-time display of how much gas and electricity you’re using and submit readings automatically to your energy company. As a consumer it’s free to have them installed.

My experience of smart meters

About three years ago, when I was getting my gas and electricity from British Gas, I had a smart meter fitted. 

All went well for six months, then I switched to EDF and the smart meter stopped working. I didn’t get any useful information from it and had to revert to sending in meter readings myself. I unplugged the display and almost forgot about it.

Then in March this year – despite getting no notification – my smart meter started working again. I only knew because I logged into my EDF account and data from the meter was showing there. Luckily I was able to find the display unit again. I plugged it in and after a few seconds it reconnected and started showing me useful figures once more. It’s fair to say I was surprised!

So if you’re in my position and your meter stopped working after you changed supplier, I definitely recommend checking and trying again now. But if you still don’t have a smart meter, I do think it’s a good idea to get one if you can. I’ll explain why in more detail below…

Why I still recommend smart meters

Here are some of the obvious advantages of having a smart meter.

• No more estimated bills.
• No need to arrange for meter readers to gain access (or submit readings yourself).
• There may be cheaper, smart-meter-only tariffs you can switch to (though not so much at the moment).
• With the aid of the in-home display you can check how much energy you are using at any time, helping you see where you can make savings.

Depending on your circumstances there may be other benefits too.

To give you a couple of examples, one day I noticed from the smart meter that I was using more electricity than I would have expected. After searching the house, I discovered I’d left an electric fire switched on.

If it hadn’t been for the meter I’m not sure how long it would have been before I noticed this. And obviously, as well as the cost, having it on with nobody there could have been a fire risk.

I’ve also found my smart meter good as a reminder of how much electricity certain items in the kitchen (and elsewhere) use. In particular, I have an electric oven which puts the meter into the amber or even red zone in pretty short order.

So nowadays I am making more use of my microwave and an air fryer I got a few months ago, as both use less power over a shorter period. Of course I should have known this anyway, but a smart meter really brings it home to you.

What are the drawbacks?

One possible objection to smart meters is that they may encourage a miserly attitude to energy use and cause friction within couples and families. 

A female friend refused point blank to have a smart meter installed because (rightly or wrongly) she feared her husband would turn into an ‘energy fascist’, constantly turning down the heating and switching off lights to save money. That is obviously an issue every couple needs to negotiate for themselves!

Also, you do occasionally hear stories about smart meters giving the wrong readings (though as the technology improves, I’m hearing this less often). But it obviously makes sense to keep an eye on the figures your meter is showing and if they look wrong take it up with the energy company.

Other benefits of smart meters

As mentioned above, when energy markets return to a more normal state, cheaper smart-meter-only tariffs may become more widespread. And on the other side of the coin, people who refuse to have smart meters installed may end up being charged more.

In addition, with the help of their smart meters, people who generate their own power (e.g. with solar panels) may be able to sell their surplus energy back to the grid, thus recouping some of their costs.

There are also some innovative schemes for EV (electric vehicle) owners. Recently, Octopus Energy announced a new tariff called OctopusGo. This allows people who own (or lease) electric cars to charge them at a much cheaper rate between 00:30 and 04:30 every night. Again, a modern smart meter is required for this.

Summing up

All things considered, then, I do recommend getting a smart meter, especially in the current cost of living crisis. Mine is definitely helping me reduce my energy bills and ensure they are more accurate.

Obviously this is a decision everyone needs to make for themselves, but I think for most people the benefits outweigh any possible drawbacks. And if they help cut overall energy consumption, that has to be good for the planet as well.

That’s my view anyway, but what do you think? Please leave any comments below as usual.

Nick Daws writes for Pounds and Sense, a UK personal finance blog aimed especially (though not exclusively) at over-fifties.

Photo by Siân Wynn-Jones on Unsplash

The post My experience of smart meters and why I still recommend them appeared first on Mouthy Money.

Millions of households could pay higher energy prices of around £693 a year more for electricity and gas, following a price rise on 1 April.

This is the biggest recent rise in the cost of energy bills, with prices going up 54%. From 1 April 2022, the price cap on a typical household energy bill rises by £693 to £1,971 a year

The price hikes along with other cost-of-living rises such as fuel and food will leave many families struggling to make ends meet.

Dame Clare Moriarty, chief executive of Citizens Advice, says: “The energy price cap rise will be potentially ruinous for millions of people across the country.

“The support announced so far from the government simply isn’t enough for those who’ll be hit hardest. With the long-anticipated price rises now hitting, many more people will face the kind of heart-rending choices that our frontline advisors already see all too often.”

Why are energy prices going up?

The energy price cap is the maximum suppliers can charge households in England, Wales and Scotland, per unit of energy consumed. Bills are going up because this cap is being raised.

The price cap is being raised by Ofgem, the energy regulator thanks to a combination of global factors that have led to rising international natural gas prices.

A surge in natural gas prices, which climbed to around four times its previous cost thanks to increased demand from Asia and China helped increase bill prices.

What could this mean for you?

The number of English households in ‘fuel stress’ – a term for those spending 10% or more of their income after housing costs on energy bills – will double from 2.5 to five million as a result of the price cap rising from 1 April.

Another 2.5 million households are at risk in October if the price cap rises again to £2,500, according to the Resolution Foundation.

Families living in poorly insulated homes (with an energy efficiency rating of E) will feel rising energy prices more than others, says the Resolution Foundation, with their bills set to be £320 a year higher than those in similarly sized C-rated homes.

Jonathan Marshall, senior economist at the Resolution Foundation, says: “Today’s energy price cap rise will see the number of households experiencing fuel stress double to five million.

“There are no easy ways to protect people from rising bills in the current climate. But with many of the poorest households missing out on the Council Tax rebate, this scheme should be used to supplement, rather than replace, support via the benefit system, which is better equipped to target lower-income families.

“Another increase in energy bills this autumn hastens the need for more immediate support, as well as a clear, long-term strategy for improving home insulation, ramping up renewable and nuclear electricity generation, and reforming energy markets so that families’ energy bills are less dependent on global gas prices.”

The cost-of-living crisis

Facing the sharpest decline in living standards since records began, people in the UK are already leaning into credit and debt to meet the everyday challenges of the financial crisis, according to The Money Charity.

With inflation hitting 6.2% in March and energy prices rising, households find themselves at the sharp end of the cost-of-living crisis.

Michelle Highman, chief executive of The Money Charity says: “It currently feels like barely a day goes by without a newly emerging report on prices or the cost of living, each one further squeezing UK household budgets and decreasing people’s financial wellbeing.”

How to protect your finances from rising energy prices

Even if the situation is looking bleak, there are still ways to protect your money from rising energy prices.

For example, the Government’s Energy Rebate Scheme – a £150 Council Tax (CT) rebate and a £200 discount for all billpayers – will go some way towards reducing the impact of the energy price cap rise on low-income households.

The support will limit the rise in low-income households’ spending on energy bills from 7 to 10 per cent, rather than 7-12%, according to the Resolution Foundation.

Other ways to protect your money from higher bill prices are:

• Choose paperless bills and manage your account online, as some companies charge extra for paper bills
• Send regular meter readings to keep your bill accurate. If you have a smart meter, it will do this automatically
• Question any bill increases that seem too high
• Choose energy-efficient appliances – for example, an energy-efficient washing machine, based on EU energy-efficiency ratings
• Add insulation to your house – according to consumer group Which? you could be saving £250 per year if you insulate your home
• Install central heating controls – could save a typical home £75 a year according to the Energy Saving Trust.
• Use less hot water in the Spring/Summer seasons, and use your heating wisely

Photo by Mikhail Nilov on Pexels

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