What happens if you are struggling to pay energy bills and can't afford price cap
26.08.2022 - 14:47
/ manchestereveningnews.co.uk
The energy price cap will rise yet again in October, soaring to £3,549 in the autumn. Regulator Ofgem announced the increase on Friday (August 26) and said the new price cap will last for three months until October 1.
But from January, analysts expect the cap to rise again to £4,200. The announcement came amid the worsening cost-of-living crisis, with petrol and household item prices soaring and taxes and interest rates also going up.
Households have been told to brace for a tough winter, with families having to come up with the money to pay bills or face living in the cold. It is believed that around 24 million households in the UK have their domestic energy bill decided by Ofgem's price cap.
Read more: Latest energy price cap rise announced as average household bill set to hit £3,549 in October, Ofgem announces
A price cap is also decided for customers on prepayment meters which are separated from those with variable tariffs. As a result of the increase, many bill payers are thinking about cancelling their direct debits from October and refusing to pay the extortionate rates in a stand to try and lower costs.
The Don't Pay UK campaign is nearing 115,000 signatures, reports the ECHO. However Money Saving Expert Martin Lewis has warned against this as he advised that consumers need to make an informed decision and understand the risks of being in breach of their contracts with energy suppliers who could enforce a pre-payment meter, cut off energy supply or impact consumers' credit scores negatively.
Elsewhere, there are people who simply can not afford the new energy rates and as a result they may miss payments. Les Roberts, content manager at Bionic provided guidance on what your rights are if you can't or won't