BRITISH households are facing increasing energy costs this winter after the regulator raised its price cap in October.

Ofgem’s price cap is rising by £149 from the current £1,568 a year for a typical household in England, Scotland and Wales to £1,717.

Now, information has been shared by PA news agency on why the price cap is increasing and what people can do to mitigate the cost of their energy bills.

How can I lower my energy bills? 

Jonathan Brearley, Ofgem’s chief executive, said he was encouraging people to “shop around” to see if they can get a better deal on their energy tariff.

“For the first time in a long time, we are seeing some good value deals emerge,” he said.

“I’d encourage people to shop around and consider fixing if there is a tariff that’s right for you – there are options available that could save you money, while also offering the security of a rate that won’t change for a fixed period.”

Martin Lewis, the founder of MoneySavingExpert.com, said people “can and should save by switching” their energy supplier, and consider a fixed-price energy tariff.

“The cheapest year-long fixes on the market right now are about 7% less than the new October price cap, but they might not be around long,” he cautioned.

Mr Lewis suggested that people look for the cheapest option for their use and location, and they can use comparison sites to find and compare deals.

Emily Seymour, energy editor at Which?, said: “Unfortunately, there’s no ‘one size fits all’ approach when it comes to fixing an energy deal as it will all depend on your individual circumstances.

“You should compare what your monthly payments would be on a fixed deal with what you’d expect them to be if you remain with the price-capped variable tariff to see what the best option is for you.

“As a rule of thumb, we’d recommend looking for deals around the price of the current price cap, not longer than 12 months and without significant exit fees.”

What support is available for energy bills? 

Ofgem urged people to make the most of any state benefits they are entitled to, which could help with paying energy bills as well as the wider cost of living.

Around 1.4 million pensioners are already receiving pension credit, but the government estimates that up to 880,000 further households are eligible for support for those with low incomes.

People receiving pension credit qualify for the winter fuel payment worth up to £300, to help with bills.

Previously, anyone over state pension age could receive the payment, but this was changed by the new Government, meaning about 10 million pensioners will miss out this year.

What to do if you are going to struggle to pay energy bills?

People are encouraged to contact their energy supplier if they are worried about paying their bills.

Energy companies are required to work with customers to agree on a payment plan they can afford, which could mean more flexibility over how and at what time people pay.

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They should take into account people’s income and outgoings, debts and personal circumstances, and an estimate of how much energy will be used in future, for which regular meter readings can help build a more accurate picture.

Richard Lane, of debt charity StepChange, said it was a “worry that a rise in the price cap may tip struggling households into deeper debt”.

He urged the Government to introduce targeted support for those who are struggling the most.