Energy bill mistake costing Britons £248 in savings as millions brace for Ofgem price cap hike

A common energy bill mistake is costing Britons up to £248 in savings as millions brace for the upcoming Ofgem price cap hike.

This morning, the UK's energy regulator confirmed the energy price cap will increase by 13 per cent to £1,862 annually from July 1, with additional rises forecast for the autumn months.

Gas prices are bearing the brunt of the increase, jumping 27.7 per cent compared to a more modest 5.8 per cent rise for electricity.

Under the new rates, households will pay 7.33p per kilowatt hour for gas, up from the current 5.74p. Electricity costs will climb from 24.67p to 26.11p per kWh.

Despite potential savings of £248 available through fixed tariffs, research from Uswitch.com reveals that just one in seven households on standard deals intend to switch before the July price hike takes effect.

The comparison service found that nearly two-thirds of those on standard tariffs remain unaware that their rates will rise next month.

Adding to the confusion, approximately one in ten households mistakenly believes they will escape the price increases entirely.

Some 20 fixed energy deals currently beat the incoming July rates, with the cheapest option from Fuse Energy offering a 13-month tariff at £1,614 annually for typical usage.

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A quarter of households report feeling powerless about escalating energy costs, with an equal proportion expressing anger at the situation.

Around one in five feel there is nothing they can do, while a similar number are adopting a wait-and-see approach before taking any action. Another 15 per cent have yet to decide on their next steps.

Uswitch.com has categorised nearly four million British households as "Energy Ostriches" who bury their heads in the sand and miss substantial savings opportunities.

A further 18 million are described as "Energy Otters" who try to stay informed but often get distracted.

Ben Gallizzi, an energy expert from Uswitch.com, warned that households should treat switching as an urgent priority.

Mr Gallizzi said: "The 24 per cent jump in gas prices might seem easier to bear in July while heating is off, but a graver concern is this setting the baseline for a further increase in October."

He added: "Locking in a fixed deal now will let you dodge these imminent price rises and keep your rates protected when the heating turns back on."

Cornwall Insight predicts the price cap will climb again to £1,899 between October and December, making the coming winter potentially more expensive for those who remain on standard tariffs.

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