Energy bills rise but help cushions blow
Energy prices rose for millions of households on Saturday, but the increase has been cushioned by a government cap on the cost per unit.
The squeeze is particularly acute for those on prepayment meters, who pay for energy as they use it, and so have largely been unable to smooth out increased bills over the year. They are also hanging washing indoors and finishing it off for 10 minutes in the dryer, as opposed to using the dryer more often.
Under the government's two-year price guarantee, the average unit price for dual fuel customers paying by direct debit on variable deals is limited to 34p per kilowatt hour for electricity and 10.3p per kWh for gas.With standing charges added, it means a typical household - one that uses 12,000 kWh of gas a year, and 2,900 kWh of electricity a year - will not pay more than £2,500 a year for energy from Saturday.
That doubling of a typical energy bill is why millions of households have cut back on their energy use, according to a survey by the consumer group Which?.
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