Energy prices are rising to a three-year high at the start of October and forecasts suggest there will also be a hefty increase in costs in January. Regulator Ofgem's price cap affects millions of people on variable or default tariffs, but those on a range of tariffs may use more energy - and so pay more - if it proves to be a cold winter. So what can you do to keep a check on rising bills?
The energy regulator, Ofgem, is advising people to consider fixing - so that the price you are charged per unit of gas or electricity does not change every three months, although the total bill will still vary depending on how much energy you use. The trouble is that it is very difficult to work out whether a fixed deal is a good deal at the moment. Should energy prices rise sharply, then those who have fixed already have the certainty of what they will pay for each unit of energy.
That price may well be lower than the forecast price in January. However, if events in the Gulf region settle down, and a peace deal in the Iran war leads to lower international gas prices, then a longer-term fix might not seem such good value compared with the price cap. So consumer group Which? also recommends keeping an eye on any exit fees when picking a fixed deal.
If variable prices fall below your fixed rate and you want to get out of it before the end of your agreement period, you may have to pay a hefty sum. Before you fix, consumer website Money Saving Expert advises you look at all the deals available, not just what your own supplier is offering. Energy price cap: How much gas and electricity does a typical household use?
Ofgem says about five million people still pay their bill when it arrives every three months. For some that's because they do not want their supplier to estimate their usage in case they are overcharged. Taking regular meter readings, or having a smart meter, while paying by monthly direct debit solves that problem.
Moreover, paying by direct debit costs less per unit than by so-called standard credit. You will usually - although not always - need to switch to direct debit if you want to take advantage of the fixed deals on offer. Customers on prepayment schemes - usually people on low incomes struggling to pay bills - used to pay a higher rate than others, but now they pay slightly less than the capped direct debit variable rate.
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