Energy Bills Guide

Energy bills are one of the biggest household costs — and one of the most confusing. This guide explains how the price cap works, what help is available, and practical steps to reduce your bills today.

The Ofgem Price Cap

The energy price cap limits the unit rates and standing charges that suppliers can charge. It's set quarterly by Ofgem and applies to customers on standard variable tariffs.

The cap is based on a typical household using 11,500 kWh of gas and 2,700 kWh of electricity annually. It caps the rate, not your total bill — so if you use more, you pay more.

Help Available Right Now

Warm Home Discount

A one-off £150 discount off your electricity bill, paid automatically if you qualify. You qualify if you receive the Guarantee Credit element of Pension Credit, or are on a low income (assessed by your supplier using DWP data).

Winter Fuel Payment

A tax-free annual payment to help older people with heating costs. Since 2024, this is means-tested — you must receive Pension Credit or certain other benefits to qualify. Check eligibility at GOV.UK.

Cold Weather Payment

£25 for each 7-day period of very cold weather if you receive Universal Credit, Pension Credit, or Income Support. Payments are automatic — you don't need to apply.

Energy Company Obligation (ECO4)

A government scheme where energy companies fund insulation and heating upgrades for low-income and vulnerable households. Apply through your energy supplier or the GOV.UK ECO4 page.

Energy Supplier Hardship Funds

Most major suppliers have hardship funds for customers struggling to pay. Contact your supplier and ask about debt repayment plans, hardship grants, and the Priority Services Register.

Suppliers cannot disconnect you between October and March if you are of pension age or have a disability. If threatened with disconnection, contact Citizens Advice immediately.

Practical Ways to Reduce Your Bills

  • Get a smart meter — free from your supplier, shows real-time usage and stops estimated billing
  • Reduce your thermostat by 1°C — saves around 10% on heating bills
  • Switch off standby — devices on standby can add £55–£80/year to your bill
  • Full loads only — washing machines and dishwashers are more efficient when full
  • Wash at 30°C instead of 40°C — uses around 40% less energy
  • LED bulbs — use 75% less energy than incandescent and last much longer
  • Draught-proof your home — cheap draught excluders make a real difference
  • Bleed your radiators — trapped air makes them less efficient

Switching Suppliers

Uswitch

Compare energy tariffs and switch online.

MoneySupermarket

Energy comparison and switching tool.

Ofgem

Official energy regulator — check your rights and the current price cap.