Energy bills are going up - here's what you can do about it

Energy prices have now risen by nearly 4%, with forecasts of a much bigger jump to come in January.

Regulator Ofgem's price cap affects about 20 million households in England, Scotland and Wales and sets a maximum price for each unit of gas and electricity.

Forecasters have suggested a 16% increase is possible in January, due to high wholesale prices paid by suppliers as a result of the conflict in the Middle East.

While that's beyond consumers' control, charities say the government should offer more support - beyond a VAT cut on electricity bills which takes effect on Thursday - and households should reset for winter again.

That includes reading the meter now, and taking other steps to keep a check on rising bills.

The energy regulator, Ofgem, is advising people to consider fixing - so that the price you are charged per unit of gas or electricity does not change every three months, although the total bill will still vary depending on how much energy you use.

The trouble is that it is very difficult to work out whether a fixed deal is a good deal at the moment.

Should energy prices rise sharply, then those who have fixed already have the certainty of what they will pay for each unit of energy. That price may well be lower than the forecast price in January.

However, if events in the Gulf region settle down, and a peace deal in the Iran war leads to lower international gas prices, then a longer-term fix might not seem such good value compared with the price cap.

So consumer group Which? also recommends keeping an eye on any exit fees when picking a fixed deal. If variable prices fall below your fixed rate and you want to get out of it before the end of your agreement period, you may have to pay a hefty sum.

Before you fix, consumer website MoneySavingExpert advises you look at all the deals available, not just what your own supplier is offering.

Ofgem says about five million people still pay their bill when it arrives every three months. For some that's because they do not want their supplier to estimate their usage in case they are overcharged.