Uswitch comments on July energy price cap rises taking effect

Sabrina Hoque, energy expert at Uswitch.com, said: "Today, the new July price cap comes into effect, meaning energy rates for millions of homes will significantly increase by 13% unless they take action. 

"Analysts currently predict the October price cap could be around £1,654 – barely 0.5% below July – therefore remaining high through the most crucial months.

“The Iran ceasefire has taken some volatility out of wholesale markets, but the situation remains fragile, and uncertainty hasn't disappeared. Any lasting resolution will take time to feed through to bills. 

"For anyone wondering whether to opt for a fixed deal or stay on a standard tariff, the answer is clear – the majority of fixed tariffs will save you money. 

“Around 60% of the nation are still on a default tariff and should take power into their own hands to avoid these rocketing rates.

“If you haven’t switched tariffs within the last 18 months, you are almost certainly, by default, on a standard tariff and paying more than you need to for your gas and electricity.  

"Ofgem has updated its definition of a 'typical' household to align with a shift happening in household energy usage – cutting the assumed average gas consumption by 17% and electricity by 7%. That shift makes the illustrative price cap annual figure of £1,663 appear lower than previously announced, but the increase to household energy rates still remains 13%. 

“Using the new average consumption figures, the cheapest fixed deal on the market comes in at £1,382 a year for a typical usage household – 17% or £281 below the standard rates.

"Locking in a fixed tariff now means protecting yourself not just today, but through autumn and winter when heating use is at its highest and energy costs hit household budgets hardest. Although rates have increased today, it is not too late to avoid the financial hit.”

Uswitch’s checklist to keep energy bills as low as possible: 

• Submit a meter reading: If you don’t have a smart meter, submit your latest readings on or around 1 July to ensure you’re charged the correct amount. You should regularly submit meter readings to avoid over- or underpaying. 
• Lock in a fixed deal: Standard energy rates have risen 13%, so run a comparison to see which fixed tariff offers the biggest savings. There are a number of fixed deals available that significantly undercut the standard rates households will otherwise pay.
• Track and manage your energy usage: Utilise your smart meter and connect it to the Uswitch app to find out where you can cut back. Uswitch and many suppliers also offer energy-saving schemes which allow you to save money by reducing your usage or shifting it to off-peak times. 
• Change your energy habits: With the weather getting warmer, ditch the tumble dryer and hang clothes outside to dry where possible to save money. Unless necessary, turn off your thermostat for summer to avoid accidental heating costs on warmer days.