With gas and petrol prices soaring, experts say homeowners need to look at bills NOW

Today, 1 April, the new energy price cap has come into effect - bringing with it a decrease in the average annual gas and electricity bill of 6.6% (from £1,758 to £1,641 for a typical household). However, the energy experts at Go.Compare are warning that these energy savings are likely to be short lived, and householders should act now to protect themselves from future price rises.

Gareth Kloet, energy expert at Go.Compare, said:

“Firstly, if you didn’t take a meter reading on 31 March and submit it to your energy supplier, stop what you’re doing and get this done right now. This meter reading will ensure you are charged at the new, lower rate for any energy you use from today onwards.”

The new price cap, which is set by Ofgem on a quarterly basis, marks the lowest energy prices have been since September 2024*, which is good news for households – but Gareth is warning that we don’t know how long these savings will last. 

“This April 1st price cap is lower because we have been benefitting from lower wholesale energy prices until now, which have been a third lower this year. However, in recent weeks we have seen oil and petrol prices skyrocketing due to the crisis in the Middle East, which has caused a huge amount of volatility in the market, and if this is sustained throughout the spring, we may be in for an increase in July when the next price cap is announced.

“With this unpredictability overshadowing the market, what the country really needs is reassurance from the government that support will be there should prices shoot up in the following price cap, as well as clarity on exactly what this support will be, so that billpayers can prepare their finances as necessary. An absence of this will only create more anxiety and uncertainty among households around how they’re going to afford their bills if prices skyrocket.

“What this unpredictability does mean is that now’s a smart time to check your tariff and make sure you’re on a deal that works for you - whether you decide to fix your rate or stay flexible. Securing a fixed rate energy tariff now might mean you’re protected against unexpected price rises in the coming months, but you could be paying more in the long term.

“In either case, it’s important to make sure you check the terms carefully, including any exit fees that you may need to pay before switching.”

The price cap is reviewed quarterly by Ofgem, the energy regulator, and sets a limit on the unit rates and standing charges that energy suppliers can charge for standard variable tariffs.

Gareth adds, “The important thing to remember is that every household’s usage profile is different, so what works for one home may not suit another. Take a look at your current energy contract - the standing charges, unit rates and any early-exit fees. Then take this information and shop around for a deal that works for you and your energy needs, using a comparison website.

“As always, if you’re finding it difficult to manage your energy bills, get in touch with your supplier sooner rather than later. Providers are required to support customers in financial difficulty and can help you set up a payment plan.”

To learn more about the energy price cap, visit: https://www.gocompare.com/gas-and-electricity/guide/energy-price-cap/.  

And for more information on how to switch energy providers, Go.Compare has put together a guide which you can find here. 

For a comprehensive list of energy savings tips, visit: https://www.gocompare.com/gas-and-electricity/guide/energy-saving-tips/. 

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