Understanding Your Energy Price Increase
When your energy supplier puts its prices up, it means the amount you pay for your gas or electricity will increase. This can affect your monthly direct debit, prepayment meter costs, or the bill you receive after using energy. Understanding why prices change and how you’re protected can help you make informed decisions about your energy supply.
How Are Energy Prices Regulated in the UK?
In the UK, energy prices are regulated to protect consumers from unfair charges. Ofgem, the energy regulator, sets a price cap on standard variable and default tariffs. This cap limits how much suppliers can charge per unit of gas and electricity for most households, although it doesn’t apply to fixed tariffs. The price cap is reviewed and updated regularly to reflect changes in the cost of supplying energy.
If you’re worried about the fairness of a price increase or want to know more about your consumer rights regarding energy bills, there are rules in place to ensure you’re treated fairly.
Fixed vs. Variable Tariffs: What’s the Difference?
Fixed Tariffs: With a fixed tariff, the price you pay per unit of energy is locked in for a set period (usually 12, 18, or 24 months). If you’re on a fixed tariff, your supplier cannot increase your unit rate or standing charge until your contract ends, unless you agree to a change.
Variable Tariffs: On a variable tariff, your prices can go up or down, usually in line with changes in the wholesale energy market or Ofgem’s price cap. Most suppliers will give you notice before any increase takes effect.
Knowing which tariff you’re on is important, as it affects how and when your supplier can change your prices.
Why Do Energy Suppliers Raise Prices?
Suppliers may increase prices for several reasons:
Rising wholesale costs: If the cost of buying energy on the global market goes up, suppliers often pass these costs on to customers.
Government policies and environmental charges: Suppliers may need to contribute to schemes that promote renewable energy or support vulnerable customers, which can impact prices.
Network and operational costs: Maintaining and upgrading the energy network also adds to the cost of supplying energy.
While these factors can lead to price rises, suppliers must follow rules set by Ofgem to ensure increases are justified and communicated clearly.
How Should You Be Informed About Price Changes?
By law, your supplier must give you at least 30 days’ notice before increasing your prices if you’re on a variable tariff. This gives you time to review your options, switch suppliers, or change tariffs without paying an exit fee. The notice should explain:
When the new prices will take effect
How much your bill is likely to change
What you can do if you want to switch or challenge the increase
If you don’t receive proper notice, or if you think the increase is unfair, it’s important to know your rights and seek help if needed.
For a broader look at issues related to energy bills, including how to handle price increases, see problems with your energy bill. Understanding the rules and your rights can help you stay in control of your energy costs and avoid unexpected charges.
Checking If the Price Rise Is Fair and Correct
When your energy supplier raises its prices, it’s important to check whether the increase is fair and follows the rules set out in your contract and by regulators. Here’s how you can make sure the new rates are correct and what to do if you think something’s not right.
1. Check Your Contract Terms
Start by reviewing your energy contract. Most fixed-rate tariffs lock in your price for a set period, meaning your supplier can’t increase your unit rate or standing charge until your contract ends. If you’re on a variable tariff, your prices can go up or down, but your supplier must give you at least 30 days’ notice before making any changes. The notice should explain when the new prices will take effect and why they’re changing.
2. Understand the Energy Price Cap
The energy price cap is a limit set by the regulator, Ofgem, on the maximum amount suppliers can charge customers on standard variable and default tariffs. This cap is reviewed every three months and is designed to protect consumers from unfair price hikes. If you’re on a standard or default tariff, your supplier cannot charge more than the cap allows.
For the latest information on how the cap works, what it covers, and the current rates, visit Ofgem. You can also find detailed figures and explanations about the Energy Price Cap, including how it’s calculated and what your maximum charges should be.
3. Compare Your New Bill to Official Rates
When you receive a new bill after a price increase, check the unit rates (price per kWh) and standing charge against the figures published by Ofgem. Make sure your supplier hasn’t exceeded the cap for your region and tariff type. If you’re on a fixed tariff, compare the new rates to those in your contract – there shouldn’t be any changes until your deal ends.
4. Know Your Consumer Rights
You have legal protections against unfair or incorrect price increases. Suppliers must follow strict rules set out by Ofgem and the terms of your contract. If you feel a price rise is unjustified or you’re being charged more than the cap allows, it’s important to know your rights to avoid unfair charges. This guide explains your consumer protections and what steps you can take.
5. What to Do If You Suspect an Error or Unfair Increase
If you think the price rise doesn’t follow the rules, or your bill is higher than it should be:
Contact your supplier and ask for a detailed explanation of the price change.
Compare their response to your contract and the current Ofgem price cap levels.
Keep a record of your correspondence and any bills or notices you’ve received.
If you’re not satisfied with their explanation, or you believe you’ve been overcharged, follow the steps outlined if you think you’ve been charged too much for your energy. This will guide you through making a complaint and seeking a resolution.
By staying informed and checking your bills carefully, you can make sure any price increase is fair and within the rules. If you’re unsure, always seek clarification from your supplier or refer to official sources like Ofgem for up-to-date information.
Your Rights When Your Energy Supplier Raises Prices
Your Rights When Your Energy Supplier Raises Prices
When your energy supplier increases its prices, you have important rights and protections as a consumer. Understanding these rights can help you respond confidently and make informed decisions about your energy supply.
Your Right to Clear and Timely Notice
Energy suppliers are required to give you clear, advance notice before any price increase takes effect. This notice must be provided in writing – usually by letter or email – and should explain when the new prices will start and how they will affect your bill. Typically, you should receive at least 30 days’ notice before the changes are applied. This gives you time to review your options and take action if you’re not happy with the new rates.
Understanding Your Contract Terms
It’s important to check the terms of your energy contract to see what changes your supplier is allowed to make. Most contracts fall into two categories:
Variable Tariff: Prices can go up or down, but you must be notified in advance. You are free to switch suppliers at any time, often without penalty. To better understand how these tariffs work and your options for changing suppliers, see Variable Tariff.
Fixed Tariff: Your rate per unit of energy is fixed for a set period. Your supplier cannot increase your unit rate or standing charge until your contract ends, unless you make changes to your account (such as moving home).
All contract changes must comply with the Consumer Rights Act 2015, which ensures that terms are fair and clearly explained.
Your Right to Switch Suppliers Without Penalty
If you’re on a variable tariff and your supplier raises prices, you have the right to switch to another supplier or tariff without paying an exit fee. As long as you start the switching process within the notice period (usually 30 days), your current supplier cannot charge you a penalty for leaving. This gives you the flexibility to shop around for a better deal if you’re unhappy with the price increase. For step-by-step guidance, visit Variable Tariff.
Protection for Fixed Tariff Customers
If you’re on a fixed tariff, your supplier cannot increase your prices during the fixed term, except in very specific circumstances outlined in your contract. For most customers, this means your rate is protected until your deal ends. If your supplier tries to raise your prices before your contract expires, you have the right to challenge this and, if necessary, make a complaint.
If Your Direct Debit Payments Increase Without Proper Notice
Suppliers sometimes increase your direct debit payments when prices go up or if they believe your usage has changed. However, they must always give you clear notice before making any changes to your payment amount. If you find that your direct debit has been increased without explanation or proper notice, you have the right to question this and request a review. For detailed advice on what to do in this situation, see if your energy supplier has increased your direct debit payments.
Know Your Rights and Take Action
You are protected by UK consumer law whenever your energy supplier changes prices or billing arrangements. The Consumer Rights Act 2015](https://www.gov.uk/government/publications/consumer-rights-act-2015/consumer-rights-act-2015) sets out your right to fair treatment and clear information. For a broader overview of your protections, including how to avoid unfair charges and what to do if you suspect a problem, read more about [your rights on billing and payments.
If you believe your supplier has not followed the correct process, or if you feel a price increase is unfair, you can raise a complaint and, if needed, escalate it to the Energy Ombudsman. Taking the time to understand your rights ensures you can make the best decision for your household and avoid paying more than you should.
What You Can Do If You Disagree With the Price Increase
If you disagree with your energy supplier’s price increase, you have several options to challenge it and protect your rights. Here’s what you can do:
1. Contact Your Energy Supplier
Start by reaching out to your supplier as soon as you notice a price rise you believe is unfair or incorrect. You can usually find their contact details on your bill or their website. Clearly explain why you disagree with the increase – whether it’s higher than what was announced, not in line with your contract, or you weren’t given proper notice (suppliers must give at least 30 days’ notice of any increase). Keep a record of all your communications, including dates, names of people you spoke to, and copies of emails or letters.
2. Raise a Formal Complaint
If the issue isn’t resolved after your initial contact, you can make a formal complaint. Every supplier has a complaints procedure – check their website or ask for details if you’re unsure. When making your complaint, provide as much evidence as possible, such as recent bills, your contract, and any previous correspondence. This strengthens your case and shows you’ve taken reasonable steps to resolve the issue.
3. Gather Evidence
To support your complaint, collect all relevant documents. This could include:
Copies of your energy bills before and after the price increase
Your contract or tariff information
Any letters or emails from your supplier about the price change
Notes from phone conversations (including dates and names)
Having this information to hand makes it easier to explain your situation and prove your case if you need to escalate it further.
4. Escalate to the Energy Ombudsman
If your supplier doesn’t resolve your complaint within eight weeks, or you’re unhappy with their final response, you can take your case to the Energy Ombudsman. The Ombudsman is an independent body that can investigate your complaint and, if appropriate, order the supplier to put things right – this might include an apology, an explanation, or financial compensation. From 1st April 2025, the Energy Ombudsman will also be able to handle disputes involving all heat network suppliers.
5. Refunds and Overcharging
If you’ve been overcharged due to a price increase, you may be entitled to a refund. Suppliers are required to correct billing mistakes and return any money you’re owed. For step-by-step guidance on the process, see our advice on how to claim refunds from energy suppliers.
6. If You’re Struggling to Pay
If the price increase leaves you unable to afford your energy bills, there are schemes and grants that may help. Find out more about ways to get help with your energy bills.
By understanding your rights and following these steps, you can challenge unfair price increases and ensure you’re treated fairly by your energy supplier.
Considering Switching Your Energy Supplier
When your energy supplier raises its prices, it’s natural to wonder if you could get a better deal elsewhere. Switching suppliers is one of the most effective ways to take control of your energy costs and ensure you’re not paying more than you need to. Here’s what you need to know about making the switch, how to do it safely, and what to expect along the way.
Why Switch Suppliers After a Price Increase?
Energy prices can vary widely between suppliers, and even a small difference in tariffs can add up to significant savings over the year. By comparing offers, you may find a supplier with lower rates, better customer service, or greener energy options. Switching can also put you back in control if you’re unhappy with your current supplier’s price rise or service.
Is Switching Right for You?
Before deciding to switch, consider the following:
Check your contract: Some fixed-term tariffs may have exit fees if you leave before the end date. However, if your supplier has announced a price increase, you usually have a window (typically 30 days’ notice) to switch without penalty.
Compare tariffs: Look at both fixed and variable tariffs from different suppliers. Consider your usage, payment method, and whether you want renewable energy.
Customer service and reputation: Price isn’t everything – check reviews and ratings to ensure your new supplier is reliable.
For a comprehensive overview of the process, see our guide on switching energy supplier.
How to Switch Energy Suppliers: Step by Step
Gather your details: Have a recent energy bill to hand – this will show your current tariff, usage, and account number.
Compare deals: Use comparison tools or contact suppliers directly to find the best tariff for your needs.
Check the terms: Make sure you understand any exit fees, contract lengths, or special conditions.
Start your switch: Sign up with your chosen new supplier. They’ll usually handle the switch for you, including letting your old supplier know.
Provide a meter reading: When requested, give an up-to-date meter reading to both your old and new suppliers to ensure accurate billing.
Settle your final bill: Your old supplier will send a final bill based on your last meter reading.
What to Expect During the Switch
Switching energy suppliers in the UK is straightforward and protected by regulations. Once you’ve agreed to switch, the process typically takes up to 21 days. There’s no interruption to your supply – your gas and electricity will continue as normal, and the only thing that changes is who bills you. You also have a 14-day cooling-off period after signing up, so you can change your mind if you wish.
To understand more about your consumer protections and how to avoid common issues, read about your rights when switching suppliers.
Avoiding Scams and Choosing a Reputable Supplier
Unfortunately, some scams target people looking to switch energy suppliers. To protect yourself:
Check the supplier’s credentials: Make sure your new supplier is registered and regulated in the UK.
Be wary of unsolicited calls or emails: Don’t give out personal or payment information unless you’re sure who you’re dealing with.
Read the small print: Avoid deals that sound too good to be true, and always check the terms and conditions.
By following these steps and staying informed, you can switch energy suppliers confidently, ensuring you get the best deal and stay protected throughout the process. If you’d like more detail on how to switch and what to watch out for, visit our guide on switching energy supplier.
Managing Your Energy Use to Reduce Costs
When your energy supplier increases prices, taking control of your energy use becomes even more important. By managing your consumption effectively, you can help offset rising costs and keep your bills as low as possible. Here are some practical strategies to help you reduce your energy use without sacrificing comfort:
Simple Ways to Save on Heating
Heating accounts for a large portion of most household energy bills. Small changes can make a big difference:
Adjust your thermostat: Lowering your thermostat by just 1°C can reduce your heating bill by up to 10%.
Use timers and thermostatic controls: Set your heating to come on only when you need it, and in the rooms you use most.
Block draughts: Draught-proofing doors and windows helps keep warm air in and cold air out.
Layer up: Wearing warmer clothing at home means you can set your heating a little lower.
Wondering whether it’s best to keep your heating on low all day or only heat your home when needed? Find out more in our guide: is it cheaper to have heating on all the time.
Cutting Costs with Smarter Lighting and Appliances
Switch to LED bulbs: They use up to 80% less energy than traditional bulbs and last much longer.
Turn off lights and appliances: Don’t leave devices on standby – switch them off at the plug when not in use.
Use energy-efficient appliances: When replacing old appliances, look for high energy ratings to save money over time.
Only run full loads: Use washing machines and dishwashers with full loads to make the most of each cycle.
Monitor and Manage Your Usage
Understanding how and when you use energy can help you spot opportunities to save. Smart meters and in-home displays show your real-time usage, making it easier to identify waste and adjust your habits.
Getting Expert Advice
Effective energy management doesn’t have to be complicated. For more detailed guidance on saving energy and reducing costs, check out our energy management tips.
Why Energy Efficiency Matters
Using less energy not only saves you money but also reduces your environmental impact. The UK government encourages households to improve energy efficiency through schemes and advice. While there’s no legal requirement to cut your usage, being proactive can make a real difference to your budget – especially when prices go up.
By making a few simple changes and staying informed, you can take control of your energy bills and lessen the impact of price increases.
Understanding Your Responsibilities and Rights as a Consumer
Understanding your responsibilities and rights as a consumer is essential when your energy supplier increases prices. Knowing who is responsible for paying the energy bill, and how this affects your legal protections, can help you take the right steps if you’re affected by a price rise.
Who is responsible for paying the energy bill?
Responsibility for paying the energy bill usually depends on your living arrangement and the terms of your agreement:
Homeowners: If you own your home, you are almost always responsible for paying the energy bills directly to your supplier.
Tenants: If you rent, responsibility can vary. Sometimes the bill is in your name, and you pay the supplier directly. In other cases, your landlord may include energy costs in your rent, meaning the bill is in their name.
Landlords: If you are a landlord and the tenancy agreement states that you cover energy costs, you are responsible for paying the bill and managing any price increases.
If you’re not sure who should pay, it’s important to check if you’re responsible for paying an energy bill. Your tenancy agreement or contract should set out these details. For more information on the division of responsibilities, see our guide on utilities and energy supply responsibilities.
What if you’re unsure about your responsibility?
If you’re uncertain, review your Tenancy Agreement or contract. This document should clearly state who is responsible for energy payments. Ofgem provides further guidance for tenants to help you understand your rights and what to do if your agreement is unclear.
How do responsibilities affect your rights when prices increase?
Your rights depend on whether you are the bill payer:
If you pay the supplier directly: You have the right to be notified of any price increases. You can challenge unfair increases, switch suppliers, or negotiate a new tariff.
If your landlord pays the supplier: Your landlord must follow the rules set out in your tenancy agreement. They cannot increase the amount you pay for energy unless your contract allows it, or unless you agree to a change. If your rent is “all-inclusive,” your landlord is responsible for managing price changes with the supplier.
Tenants also have protections under Energy Supply Regulations, which set limits on how much suppliers can charge for standard variable tariffs. This helps ensure you are not overcharged, whether you pay the supplier directly or through your landlord.
Legal obligations for energy supply and billing
Energy suppliers must follow strict rules set by Ofgem, including providing clear information about price changes and billing. If you are the account holder, you must pay your bills on time, but you also have the right to dispute incorrect charges or challenge unfair increases.
If you are a tenant, landlords have a legal obligation to follow the terms of your tenancy agreement and cannot pass on unreasonable energy costs. Both tenants and landlords should be aware of the protections outlined in Ofgem’s guidance for Tenancy Agreement.
If you believe your supplier is not following the rules, or if you have concerns about a price increase, you can seek advice or make a complaint. Understanding your responsibilities and rights puts you in a stronger position to manage your energy costs and respond effectively to any changes.
Additional Help and Resources
If you are struggling with higher energy prices or need more information about your rights, there are several places you can turn for support and guidance.
Where to Find Further Information and Support
Understanding why your energy supplier has increased prices and what you can do about it is important. If you want to explore broader issues, such as disputes over charges or confusing bills, our guide on problems with your energy bill offers clear advice on your rights and the steps you can take.
If you’re experiencing delays or issues with your bills, such as not receiving one for a long time, see our dedicated section on what to do if you haven’t received an energy bill in a while.
Help with Energy Bills
You may be eligible for government or charity schemes that offer financial support with your energy costs. These can include the Warm Home Discount, Winter Fuel Payment, or grants from energy suppliers and charitable organisations. For detailed guidance on what help is available and how to apply, visit our page on how to get help with your energy bills.
Useful Contacts for Complaints and Advice
If you believe your supplier’s price increase is unfair or not in line with the rules set by Ofgem (the UK’s energy regulator), you have the right to complain. Start by contacting your supplier directly – ask for a clear explanation and, if you are not satisfied, escalate your complaint through their formal process. If you remain unhappy with the outcome, you may be able to take your case to the Energy Ombudsman, an independent service that can help resolve disputes between consumers and energy companies.
For general advice and support with energy issues, you can also speak to organisations like Citizens Advice, who offer free and impartial guidance on your rights and options.
Related Topics and Further Reading
Understanding your options is key if you’re facing a price rise. You may want to learn more about switching suppliers, challenging unfair increases, or managing other billing problems. For practical information and step-by-step help, use the links above to explore related topics and ensure you’re getting the support you need.
