MILLIONS of British Gas customers will see their energy bills rise from October 1.
The supplier has revealed when its customers will see their energy bills amended.
Last week, Liz Truss announced a price freeze on the cost of gas and electricity for the next two years.
The average energy bill will rise to £2,500 a year for an average family, up from £1,971, from October 1.
Energy bills had been due to hit £3,500.
However, the new Energy Price Guarantee, which replaces the price cap, only limits the amount suppliers can charge.
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It doesn't limit the amount a household will pay, this is based on their energy usage and size of their property.
It is right to assume that if you use more energy, you'll pay more.
British Gas customers who pay by direct debit will pay the new unit rates and standing charges at their next payment review in October.
Those paying their energy bills by other means will pay more sooner.
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The current rates for those on a duel fuel tariff (standard variable tariff) that pay their bills by direct debit are:
- 7p per killowatt hour (p/kWh) for gas
- 28p/kWh for electricity
- A standing charge of 27p per day for gas
- A standing charge of 45p per day for electricity
Under the new Energy Price Guarantee, those with the same payment method, will pay a unit rate of, on average:
- 10.3p per killowatt hour (p/kWh) for gas
- 34p/kWh for electricity
- A standing charge of 28p per day for gas
- A standing charge of 46p per day for electricity
However, the amount you will pay will vary very slightly based on the company you're with, where you live and how you pay your bill.
The Department for Business, Energy and Industrial Strategy and Ofgem is yet to release the specific caps on unit rates and standing charges for those who pay on receipt of bills or on prepayment meters.
As is the case with the ‘price cap’ under the Energy Price Guarantee there will continue to be a small difference between the unit cost for a pre-payment meter customer and other bill payers.
When will the new prices be reflected in British Gas bills?
British Gas has revealed when the new prices will be reflected in your bills and payments.
While the new unit rates under the Energy Price Guarantee come into force on Saturday, October 1, when you'll pay the new prices will depend upon your payment method.
Customers on prepayment meters will pay the new unit rates from Saturday, October 1.
If you pay by fixed monthly direct debit, your payments won't change until your next direct debit review in October.
If you pay by variable direct debit or on receipt of your bill you'll pay the new unit rates on the first bill received after October 1.
We've recently reviewed whether you should fix your energy direct debit payments or switch to variable bills?
Check if you can get an energy grant
There are plenty of energy grants and schemes open to help you out if you're struggling.
British Gas has recently confirmed that it'll pay its most vulnerable customers grants worth £750 to help with sky-high bills.
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The British Gas Energy Trust has previously paid struggling households up to £1,500 – and you don't need to be a British Gas customer to apply for this help.
Ask your supplier what's on offer and how to apply, or check here:
- Bulb energy fund
- EDF's energy customer support fund
- E.on's energy fund
- Npower's energy fund
- Octopus Energy Octo Assist fund
- Ovo's debt and energy assistance
- Scottish Power's hardship fund
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