Chilling times return for energy prices
EDITOR’S COMMENT
Unusually for Scotland, this has been a summer characterised by plenty of warm, sunny days and I, for one, haven’t had the heating on for months. Even as the nights are starting to draw in, the evening air remains mild, and it feels there is still a little while to go until we hit the usual cooler temperatures of autumn.
But, inevitably, chilly times will return soon enough. Therefore, it was disappointing to hear on Wednesday that energy bills for average UK households are set to rise by some £35 from October.
Regulator Ofgem confirmed the changes to the energy price cap between 1 October and 31 December this year. It added that the 2 per cent jump will take the average annual bill to £1,755.
However, Ofgem also said that compared to the start of 2023, this is £625 (26.3 per cent) lower than when the energy crisis was at its peak.
Every three months, Ofgem officials review and set a level for how much an energy supplier can charge for each unit of energy and daily standing charge under the price cap.
You are covered by the energy price cap if you are on a default tariff and pay for your electricity and gas by standard credit, direct debit, prepayment meter or Economy 7 meter, according to the regulator.
But all is not lost and there are ways you can pay less for your energy. Rather than just accept the increase and stress about the pressure on your finances, consider taking steps to make your outgoings more manageable.
For example, you could look into changing to a fixed-rate deal, after shopping around different energy suppliers. You could also change your payment method, find out what support is available, and take steps to better insulate your home.
It’s also worth doing a bit of research into the government grants, and loans available to help decarbonise your home, including funding for heat pump installation.
In this edition of Scotsman Money, Tom Ham of Calton explores the challenge the government faces in encouraging people to invest for the long-term, and the role of planners in helping people understand and manage risk.
Meanwhile, Stuart Lamont of W1M alerts people to the change from 6 April 2027 which will see your unused pension fund fall into your estate for the first time and be subject to inheritance tax.
In our Q&A, Wendy Morrison of Acumen responds to this query: “I don’t plan to retire for another decade or two, so what’s the point in planning now?” You can read all this and more in Scotsman Money’s editorial pieces and contributed comments.