Ofgem price cap: 22 million paying maximum energy bills

By switching providers, households can save an average of £271, and 1 in 10 can save up to £715 per year.

Although energy bills fell by 7% in July to £1,720 for the average household, they are still almost £500 a year more than the average energy bill in April 2021, and are expected to rise by another £100 in April next year

Alastair Douglas, Below, TotallyMoney CEO, says the best way to save is to switch: “The reality is that you won't be left without heating or electricity. Your pipes and plugs stay the same, and the only change is who sends you the bill.

“Most switches take place within seven working days, and your new supplier handles all the paperwork – so you have nothing to worry about. They'll even contact your old supplier to cancel your account. All you'll need to do is give a final meter reading and you're done.”

Do you lose power during an energy bill switch over?

No, This is physically impossible because your gas and electricity flows through the same pipes and cables regardless of who is charging you. "Engineers will only need to visit if you're moving house or getting a new meter installed. For a standard switch, no one needs to come to your home," says Alastair.

He adds: “Energy firms need to be more transparent with customers, because these myths are not only leaving households cold, but also out of pocket. 22 million are currently paying the maximum amount suppliers are allowed to charge for energy.

“Loyalty doesn’t pay, but changing energy suppliers can – and that’s why we’ve launched a new energy switching service. Comparing providers takes minutes, and your energy supply won’t be affected during the changeover. So, check to see if you’re free to switch, and if you’ve not changed providers in the last year, then it’s likely that you can start saving money.”

(Image: Nous)

Greg Marsh, household finance expert and CEO of AI money-saving tool Nous.co, agrees: "Most can save hundreds of pounds a year by switching to a new fixed deal. Households who switch with Nous.co typically save more than £150."

He also recommends making sure your direct debit is set at the right level.

"It’s a good idea to have some credit built up around now, but not too much. If you’ve got credit worth more than twice what you pay each month in credit, you should reduce your monthly payments," he says.

Energy Standing Charges to be lowered in the budget? Glad to see the govt may be listening, and there's an outside chance according to this... https://t.co/OlnKwf4cEp I think this may have had something to do with it https://t.co/j5l4HDihIp (I sent it to v high level I govt last…

— Martin Lewis (@MartinSLewis) September 22, 2025

Take a meter reading as soon as possible

He says: "If your home doesn’t have a smart meter, take a manual reading on the day, or as soon as you can afterwards. Otherwise you may be charged for too much energy under the new price cap.

"Turning the thermostat in your home down by just 1°C can reduce your energy bills by as much as 10%, for a typical household that’s around £17 a month."

When will the standing charge get lower?

If given the go-ahead, new tariffs could be available by the end of January.

Standing charges are applied daily, regardless of how much energy the customer uses, and are used to cover the cost of supplying energy to homes and businesses.

They also cover the costs of building new network infrastructure and keeping the power on when energy suppliers go bust.

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Martin McCluskey, minister for energy consumers, says of the reduced Standing Charge proposals: “Consumers should have freedom and choice when choosing an energy tariff that works for them.

“This proposal will make more tariffs available on the market, giving people more options to pay lower standing charges if that suits their needs.

“It is an important step towards building an energy market that puts families first and we will continue to look at how we can go further.”

Ofgem said the new lower standing charge tariff mandate would be likely to only be a short-term measure while it moots permanent changes to allocate costs within the system, as the UK shifts towards renewable energy.