The cost of living emergency is in full swing. May people have already found their finances crippled by the energy price cap rise in April 2022. We knew that there would be another increase coming in October 2022. Now we know how much this will rise. Many of us want to know exactly how much we’ll be paying for our gas and electricity. What is the energy price cap October 2022?
Everyone Is Different
Firstly, as I’ve said previously, it’s important to remember that everyone is different. We all have varying circumstances. Some might still be on fixes, others might be worrying as their fixes are due to come to an end. Some have larger houses and more people living in them so energy usage will likely be more than a solo person living in a smaller flat. You might not have access to the same deals as another person you’ve seen talking about energy deals online. I’m going to look at this as someone who will be due to be paying the energy price cap October 2022 prices when it rises.
What Is The New Price Cap?
Ofgem have informed the Government that the price cap will rise 42% in October, pushing typical use to £2,800 per year. That’s over £800 extra every year. An extra £70+ per month! Not at all ideal when we head into the winter months. Right now many of us have switched off our heating as the weather is better, however bills are still crazy expensive. For a lot of people, there will be a serious decision between heating and eating when winter arrives.
The Price Cap Time Change
At the moment, the price cap changes every 6 months, based in previous months. However, it has been announced that following the next price cap change in October, the cap will change in January, April, July and October. Four times a year instead of two. Hopefully this will mean in January, it will come down a little and we’ll be getting back to a lower level of bills next year.
Is It Worth Fixing?
There are some fixes out there. However, you need to figure out if they are worth it. Especially as we will likely get a lower price cap January 2023. If you can get a lower than price cap fix with no exit fees, it would be worthwhile to hep you pay that little it less over the winter. Do the maths. Just ensure that you know what you are signing up to. Read all the small print. This includes exactly what you are paying for your daily standing charge and energy unit price. Be sure that you are happy with what you sign up to.
Some Help Could Be On The Way
If rumours are anything to go by (I don’t think they are, I believe what I hear!) then the Government might be putting together some additional support to help the country out in this difficult time. There have been calls for help for weeks, with Rishi Sunak and Boris Johnson ignoring them. If a U-turn on the idea of a windfall tax happens and a package of financial care for the poorest in society is implemented, that could be a good thing. However I feel this should have been done a long while back to avoid this stress and anxiety that people are feeling.
