Another £21 Added to Price of Every Energy Bill
Millions of pensioners are facing a winter with less support as the energy price cap in the UK is set to increase by 1.2% from £1,717 to £1,738 from January 1. This announcement was made by Britain’s energy regulator Ofgem, affecting typical households in England, Scotland, and Wales. The prediction by Cornwall Insight of a 1% fall to £1,697 did not materialize, bringing disappointment after a 10% price rise in October.
In addition to the rise in energy costs, pensioners are also set to miss out on winter fuel payments this year, which could mean up to £300 loss for around 10 million pensioners. Cornwall Insight has suggested that prices are expected to remain relatively high for the winter, despite slight falls projected for the second and fourth quarters of the following year.
The energy price cap, introduced by the Government in January 2019, sets a maximum price energy suppliers can charge consumers per kilowatt hour of energy used. While the cap is lower than during the energy crisis caused by geopolitical tensions in 2022, prices remain sensitive to global events. Craig Lowrey, principal consultant at Cornwall Insight, highlighted the need for long-term energy supply solutions and support for vulnerable households to address the ongoing price volatility.
Charities have expressed concerns over the latest price hike, with National Energy Action emphasizing the impact on vulnerable individuals. Disability equality charity Scope urged the government to introduce discounted energy bills for disabled people who often face higher energy costs due to health requirements.
In response to the continuous rise in energy prices, Ofgem is reviewing price protection measures, including the potential ban on acquisition tariffs aimed at new customers. The regulator is considering adjustments to price caps and social tariffs to provide targeted support for those struggling with energy costs.
As consumers brace for higher energy bills amidst ongoing global challenges, the call for government intervention to protect vulnerable groups and ensure long-term energy security continues to grow. The rising prices and uncertainty around future energy costs highlight the pressing need for sustainable solutions to safeguard households from financial strain during the colder months.
The UK energy market’s dynamics and the regulatory landscape are under scrutiny as stakeholders seek proactive measures to mitigate the impact of escalating energy prices on consumers. The delicate balance between market forces, government intervention, and consumer welfare remains a key area of focus as households navigate through the challenges posed by rising energy costs.