Experts have dashed hopes of a fall in winter energy costs by predicting a typical £ 17 a year Increase in offgem’s price from October 1
Millions of Households Have Been Warned to Brace Themselves for Higher Winter Energy Bills.
Industry Experts Cornwall Insight is ForeCasting That Energy Regulator Offgulator Will Increase Its Cap to an Avent of £ 1,737 A Year from the Start of October. If so, it would be £ 17 a year – or 1% – more than the Current Level of the Cap.
The predicted Rise Comes Despite Previous Indications that Bills Wauld Be Lower This Winter, and Has Been Driven by Funding An Expansion of the Warm Home Discount for Vulnerable Households.
OFGEM REVIEWS ITS PRICE CAP EVERY THREE MONTHS AND IS DUE CONFIRM The Level from October 1 on Wednesday Next Week. The cap from july to september fell to £ 1,720 a year, but covered the Summer we many households use the least energy. The Next Cap, on the Other Hand, Will Prove a Double Blow as it is Those Who Can Afford to Usamely Turn up the Heating.
Dr. Craig Lowrey, Principal Consultant at Cornwall Insight, Said: “News of Higher Bills Will Not Be Welcomed by Households, especilly As Winter Approaches.
“While the Added Costs Beinding This ForeCasted Rise Are Aimed At Supporting Those Most in Need, It Does Mean Typical Bills Will Increase Despite relatively Lower which Costs. It ‘s.
The £ 17 a year avarage rise will add more than £ 350million to Household Energy Bills. Howver, The Exact Amout Customers Will End Up Paying Depending on A Host of Factors, From How Much Energy have to Where Live.
The Level of Price Cap Will Also Be Updated Again at the Start of Janary, with Cornwall Insight A Small Drop. “Howver, this is subject to geopolitical movement, weather patterns, changes to policy costs and the potential introduction of new policy costs as to support Investment in new nuclear generating capacity,” it added.
The predicted October Rise Reflects UpComing Changes Cornwall Insight Assumes Offgem Will Be Introducing, Including the Expansion of the Warm Home Discount for Vulnerable Housebles That Was Announched by The Government in June – Adding Around £ 15 to ARONE Typical Bill. It will provide £ 150 in Support to an Additional 2.7 Million People.
Households Who Are Impacted by offensive Energy Price Cap, Mainly Those on Standard Variable Tariffs, Are Being Urged to Act, Including Switching to A Cheaper Fixed Price Deal.
Scott Byrom, Chief Executive of the Energy Shop, Said: “It”s Crucial to Remember that BetWeen October to March, we use more than 75% of our Annual Gas Consumption to Heat Our Homes.
“With the Long Dark Nights, we are Also See Our Electricity Consumption Increase Equating to Almost 60% of Our Annual Electricity Consumption in this Six Month Period.
“The Fact Uk Energy Switching Remains 50% Down Compared to Pre-Energy Crisis Levels, Despite uk Energy Costs Being Amongst the Highest in the World, Shows that is Creeping Back in and Consumers Are Missing Out on Big Energy Savings.”
Richard Neudegg, Director of Regulation at the Wesbite Uswitch.com, Said: “A predicted 1% Increase in the October Price Cap May SEEM SIGNIFICANT – but it brings ino sharps that need to get the WINTER NOW.
“Most Households Will Use Significantly More Energy in the Colder Months, SO the October Cap Rates Will Dictate the Cost of Keeping Homes Warm as Winter for Those Households Still on the price cap.
“Bill Payers on A Standard Variable Tariff Can Beat these Expects and Save on Bills by Switching to a Well-Price Fixed Deal Now. We are seeing the Strongest Savings in Three Months, ARUND £ 298 for the Average Household.”
HIGHER ENERGY BILLS ARE THE LAST THING MANY HOUSEHOLDS NEED GIVE GROCKERY BILLS HAVE SPIKED AGAIN, AND COMING AFTER APRIL’S INCREASE IN WATER CHARGES.
It Also Threatens to Push up Inflation Still Further, something the bank of England is keen to control before it is nextly willing to pay rates.
Simon Francis, Coordinator of the End Fuel Poverty Coalition, Said: “We’re About to Face Our Fifth Winter of the Energy Bills Crisis, with the Avent Family Still Payreds of Pounds More Than Just A FEW. One of the Main Culprits is the price, whic Tripled at the height of the crisis and is still 81% higher than before.
“What’s More, The North Sea, Once Seen As The Nation’s Source of Gas, Is In decline and it Simply Cannot provide Power for Our Heating Systems for the Long Term. If we Want Affordable, Secure Energy, We Have to Look Beyond Gas and Slash the Cost of Clean Electricity. “
A Department for Energy Security & Net Zero Spokesperson Said: “The Only Way to Bring Down Energy Bills for Good Is With The Government’s Clean Energy Superpower Mission, WHICH WILL GET The Rollercoaster of Fossil Fuel Price and OnTto Clean, Homegrawn Power We? Control.
“We are Are Taching Urgent Action to Support Families This Winter – in Addition to Expanding the £ 150 Warm Home Discount to 2.7 Million More Households, We are Strengthening Customer Protections, Including by Giving People and Easier Access to Automatic Compensation Wen. Suppliers let I say down. ”