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Energy Usage: compare gas and electricity

Following the crisis in the energy market that witnessed wholesale gas and electricity prices increase, suppliers started passing the costs on to the customers. However, they could stay within the energy price limit that Ofgem set but did not allow them to increase prices above a certain amount. As a result, the rising wholesale costs for energy could have led to certain providers going under and customers being transferred to other suppliers – possibly at a much higher price than they previously had to pay.

Energy Usage: compare gas and electricity

In October 2022, the price cap for energy was set to increase to PS3,549. This would have led to people on default tariffs who pay through direct debits typically experiencing an increase of more than 20% on their charges.

The government took action through a government Energy Price Guarantee in effect in October. The guarantee states that households can pay as much as PS2,500 on their energy bills, which is less than the price limit.

However, this means something other than that it’s the highest amount you’ll be charged. The guarantee limits the price providers can charge for gas units and electricity, meaning the amount you pay is contingent on the amount you’ll use.

The PS2,500 assurance will run until April 2023, when the average household’s energy price is set to increase to PS3,000.

The guarantee is available to families who live in England, Scotland, and Wales. The government states that the same assistance will be provided to families residing in Northern Ireland. There is no need to apply for the guarantee, and your supplier will handle it automatically. If you receive an email, or text message telling you to apply, ignore it. It’s a scam. Suppose you’re a customer on a prepayment meter. In that case, the guarantee will be added to the amount you are charged for every unit of electricity, meaning that the money you deposit on the meter lasts longer than it would have been.

The suppliers previously offered lower fixed rates. However, the current crisis in the energy market has meant few deals are available, and it’s highly unlikely that you’ll be in a position to get an affordable fixed rate than the current standard rate. So, even though you may think it’s beneficial to look at different energy plans and switch providers, it’s wise to put off the decision for the moment. But we’re watching the market and hoping to assist you in your decision-making soon.

What is the difference between electricity and gas?

Currently, there are only so many more affordable deals than the cost guarantee, which means changing providers is not likely to help you save money soon. The Citizen’s Advice Bureau and Energy Saving Trust recommend that you stick with your current provider. Because of this, you need to be able to compare the cost of your energy to ours. If this is changed, we’ll be there to help you find low-cost energy rates for the next time.


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