Energy price cap rise: Expert commentary

Following this morning’s announcement that the energy price cap will rise by 80% DIY Investor invited commentary from personal finance expert, Breane Horne.

Brean Horne, personal finance expert at NerdWallet, said, “The financial impact of another significant price cap rise will be huge for millions across the UK come Autumn. Energy bills are already the primary contributor to the escalating cost-of-living crisis. So, reduced limits on the amount energy providers can charge will act as a real blow for people already contending with last week’s announcement that inflation had hit 10.1% – particularly as we head into the colder months.

“For this reason, it’s more important than ever for households and individuals to gain control of their finances and take steps to combat the financial impact of the energy crisis. This may mean consulting with their supplier if they have concerns about their energy bill and checking to see if they offer any cheaper alternative tariffs for existing customers. For those contemplating switching to a fixed tariff, it is vital to ensure that the rate they lock in is less than the expected cap. Consumers should also keep up to date with the Energy Bills Support Scheme to see what help could be available to them and take proactive steps towards reducing energy consumption in their home where possible”.

“Unfortunately, people must brace themselves for a sharp rise in their energy bills regardless of their provider. But being proactive in their approach and making the changes necessary could ensure they are not paying more than they absolutely have to.”