Energy bills: get prepared

It’s important to understand how much money your energy costs you, including how to read your meters and how to read and understand your energy bills.

The energy price cap is a limit on how much energy companies can charge for each unit of gas and electricity on their standard variable tariffs. Every three months Ofgem, the energy regulator, announces the new price cap level.

The price cap limits how much companies can charge for each unit of energy and for the daily standing charge. But, it does not limit your total energy bill. If you use more energy, your bill will be higher. If you use less energy, your bill will be lower.

To make it easier to understand, Ofgem often shows the price cap as the yearly bill for what it calls a typical household. This is only an example, and your actual bill will depend on how much energy you use.

Should I fix my energy deal?

It may be cheaper to sign up to a fixed deal – this will fix your unit price for a period of time. It means if the price cap increases your unit price will stay the same. But if the price cap falls you may not benefit from the price cap. There can be fees for leaving a fixed deal early. Remember, your bills will still vary depending on how much energy you use.

Talk to your supplier to find out what deals they offer and understand if fixing is right for you.

Read our Home Energy Checklist. It provides practical advice to help households manage energy costs, stay warm, and access available support. It encourages people struggling with bills to contact their energy supplier early, take regular meter readings, and check eligibility for financial support, including benefits, grants, and energy discounts.

The guide highlights the importance of joining the Priority Services Register for vulnerable customers and staying safe by maintaining gas appliances and installing carbon monoxide alarms. It also explains schemes such as the Warm Home Discount, Winter Fuel Payment, and Cold Weather Payments.

Energy-saving measures, including insulation, draught-proofing and generally improving home efficiency are recommended to reduce bills and keep homes warmer.

The checklist also provides guidance on what to do if an energy supplier goes out of business and signposts readers to trusted organisations for advice on debt, benefits, crisis support, and energy efficiency.

Smart meters record how much electricity or gas is being used, in the same way your existing traditional meters do. They automatically send meter readings to your energy supplier, which uses this information to send you an accurate bill, based on how much energy you have used. This means your energy supplier will no longer send you estimated bills and there is no need to provide meter readings yourself.

Top tips

Follow our energy saving top tips to make small changes to your energy use. Simple actions include using heating controls effectively, setting timers, lowering boiler temperatures, and keeping homes insulated with loft insulation and draught-proofing. Switching to LED bulbs, making the most of natural light, and turning off unused lights can save energy. In the kitchen, using microwaves, air fryers, and slow cookers is often cheaper than ovens. Households can also reduce costs by avoiding standby power, washing clothes at lower temperatures, improving hot water efficiency, and taking shorter showers.

Our guides also advise on how to deal with condensation and mould and how much your electrical items cost to run.

Talk to your supplier. They sometimes have support available.

Read our Energy Debt guide.

Make sure you are claiming everything you are entitled to, including the Warm Home Discount and Winter Fuel Payment.

If eligible, sign up to the Priority Services Register.

Contact our Energy Advice and Support Service.