Great Britain’s energy prices rise nearly 4%

The BBC reports that energy prices have risen by nearly 4% in Great Britain. Ofgem’s price cap affects about 20 million households in England, Scotland and Wales. It limits the price charged for each unit of gas and electricity, but a household’s total bill still depends on how much energy it uses. Forecasters suggest a further 16% increase is possible in January 2027. [1]

Ofgem advises households to consider a fixed-rate tariff, which keeps the unit price steady during the deal. A fix could compare poorly with a variable tariff if prices fall, however, and consumer group Which? recommends checking for exit fees. The BBC says paying by direct debit costs less per unit than standard credit, while prepayment customers now pay slightly less than those on the capped direct-debit variable rate. [1]

People receiving means-tested benefits are due a £150 electricity-bill discount this winter, the BBC says. Suppliers will apply it automatically except in Scotland, where customers need to contact their energy company. Other possible help includes Cold Weather Payments, winter fuel payments for most pensioners, supplier hardship grants and the government’s Fuel Direct scheme for energy debt. Households should watch out for scams posing as official grant schemes. [1]