Your cookie preferences

We use cookies and similar technologies. You can use the settings below to accept all cookies (which we recommend to give you the best experience) or to enable specific categories of cookies as explained below. Find out more by reading our Cookie Policy.

Select cookie preferences

Skip to main content

Non-direct debit customers see energy bills rise in January

Customers who don’t pay their energy bills via direct debit have seen their annual costs go up slightly since the beginning of 2023 due to an increase in the energy price cap.
Share this guide
Meter with coins

Although the government has overridden the price cap level with its Energy Price Guarantee, which has frozen unit rates so that the average household using a typical amount of energy pays £2,500 per year, the underlying price cap mechanism continues in the background. Without the Energy Price Guarantee, it would have risen to £4,279 per year - an increase from its previous level of £3,549.

This has meant that the government has had to increase the level of financial support it’s providing to keep the Energy Price Guarantee at £2,500. While this won’t impact those paying by direct debit, it has meant slight increases for those who pay on receipt of bills and those who have prepayment meters.

Annual average cost before 1 January 2023Annual average cost after 1 January 2023
Paying by direct debit£2,500£2,500
Prepayment customers£2,559£2,579
Paying on receipt of bill£2,715£2,754

Using Ofgem's typical annual energy usage figures of 2,900kWh for electricity and 12,000kWh for gas. 

What help is available?

Customers who have seen their bills rise this January and are looking for extra support should remember that the Energy Bills Support Scheme still has two months to run, excluding January, so there is still over £120 of financial support left to receive.

Additionally, the government has confirmed details of further cost of living payments to be made throughout the year and into 2024.

The lowest income households will receive a payment of £900:

  • The first payment of £301 will be made in spring 2023

  • The second payment of £300 will be made in autumn 2023

  • The third payment of £299 will be made in spring 2024.

Additionally, another £150 payment will automatically be paid in the summer of 2023 to certain households on disability benefit, and pensioner households will receive another £300 payment during the 2023-24 winter.

Read more:

How to find out if you’re eligible for an energy help scheme, grant or benefit - Uswitch

Find out if you're eligible for energy help schemes or benefits using our interactive tool.

Learn more

Energy Price Guarantee: what does it mean for you? - Uswitch

What is the energy price freeze and what does it mean for you? Find out how energy prices are changing with the Energy Price Guarantee.

Learn more

Average gas and electricity bills in the UK - Uswitch

What does the average UK gas and electricity bill look like? See how your energy usage and bills compare against Ofgem's averages for 2024.

Learn more