Energy prices have risen by 13% today after the price cap was increased.
Analysts have warned that higher rates exacerbated by the ongoing conflict in the Middle East are likely to hit consumers until at least the winter.
Bill payers not on a smart meter are being urged to submit a reading now to avoid being charged a higher price for their previous consumption.
Chancellor Rachel Reeves hinted she could provide means tested support in the autumn, although her job is uncertain in an incoming Andy Burnham cabinet.
However experts warn that future rates are dependent on the deal struck between the US and Iran over the Strait of Hormuz, the critical chokepoint which usually handles 20% of the world’s natural gas.
Craig Lowrey, principal consultant at Cornwall Insight, warned that even in the best case scenario the impact of the war would be felt for some months to come.
When are energy prices going up?
From today, a household using the typical amount of gas and electricity can expect to pay a further £18 a month, as Ofgem’s price cap increases.
However the regulator has also revised down its definition of ‘typical’ consumption due to changing household habits and better energy efficiency, the BBC reported.
Some 33 million homes are covered by the price cap, which does not affect those on fixed rates, approximately 40% of British households.
British energy suppliers were owed a total of £4.79billion by consumers by the end of March this year.
National Energy Action said the recent heatwave underlined the need to improve the energy efficiency of properties and debt relief for those who fall behind in their payments.
Schemes are offered by suppliers to help those who are finding it difficult to pay.
Consumers also being warned to stay aware of scams such as fraudsters posing as government or energy firm officers.
What has Martin Lewis said about energy prices?
Money Saving Expert founder Martin Lewis urged consumers to take advantage of several ‘cheap fixes’ which have also launched today.
He wrote: ‘Everyone on standard-rate tariffs will see their price rise tomorrow as Ofgem’s 13% higher July Price Cap starts.
‘Ironically, at the same time, there’s a few new cheap fixes launching – letting you lock-in far cheaper – as wholesale costs have been a smidge lower this last week.’
He cites as an example Fuse Energy, which comes in at an average of 17.2% less than the price cap for new customers if they sign up for a 13-month fixed-term tariff.
The second best value-for-money option is Outfox, at 16.5% less than the price cap, for both existing and new customers on a 15-month fixed-term tariff.
Of the major suppliers, Eon worked out cheapest at 15.4% less than the July price cap, for both existing and new customers on a 12-month fixed-term tariff.
However Mr Lewis said the most common complaint from consumers was over standing charges.
He told the Commons Public Accounts Committee that the fixed daily fees were ‘by far and away the thing that drives people mad the most’.
‘I always use the analogy if I go to buy a book from a bookshop, they don’t say ‘Sorry you have to be a member of a club in order to buy a book because we have fixed costs”, he told MPs.
‘Why do we have to have fixed costs factored into a daily charge and variable costs factored into a unit rate?’
Mr Lewis added that he was disappointed Ofgem had not introduced a ‘dual price cap’ to create a ‘lower’ and ‘standard’ rate depending on usage.
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