Energy Prices Set to Surge for Millions of UK Households This Winter
A surprise increase in energy prices is on the horizon for millions of households across Great Britain, with gas and electricity costs set to rise from January. The Office of Gas and Electricity Markets (Ofgem), which regulates the industry, has announced a 0.2% increase in the price cap, equivalent to an extra £3 added to the typical annual dual-fuel energy bill.
The move comes despite predictions that households would have enjoyed a brief reprieve from rising energy bills due to falling wholesale market prices. However, government policies and levies are driving up costs, pushing the price cap higher. The increase will see average household bills rise by 28p per month, with the typical annual dual-fuel bill now standing at £1,758.
Households reliant on electricity for cooking and heating will feel the pinch most, as the cap on electricity unit rates will climb by 5.1% to 27.69p per kilowatt hour, while gas prices will fall by 5.7%. However, with bills expected to remain about 50% higher than pre-Ukraine levels, many households will be feeling the squeeze.
Experts warn that energy debt has become a significant issue, with £4.4 billion owed to suppliers and nearly 7 million people living in energy debt. The fuel poverty charity National Energy Action is calling on the government to use next week's budget to help tackle this problem by removing environmental levies from bills.
Martin Lewis, founder of MoneySavingExpert.com, believes that households with high electricity use will see their bills rise by 3% to 4%, while those relying more on gas for cooking and heating may avoid a significant increase. However, he argues that the current system is too expensive and not fit for purpose, advocating for a social tariff for vulnerable customers.
The government's clean power mission aims to bring down energy bills in the long term, but for now, millions of households will face another harsh winter with high energy prices.
A surprise increase in energy prices is on the horizon for millions of households across Great Britain, with gas and electricity costs set to rise from January. The Office of Gas and Electricity Markets (Ofgem), which regulates the industry, has announced a 0.2% increase in the price cap, equivalent to an extra £3 added to the typical annual dual-fuel energy bill.
The move comes despite predictions that households would have enjoyed a brief reprieve from rising energy bills due to falling wholesale market prices. However, government policies and levies are driving up costs, pushing the price cap higher. The increase will see average household bills rise by 28p per month, with the typical annual dual-fuel bill now standing at £1,758.
Households reliant on electricity for cooking and heating will feel the pinch most, as the cap on electricity unit rates will climb by 5.1% to 27.69p per kilowatt hour, while gas prices will fall by 5.7%. However, with bills expected to remain about 50% higher than pre-Ukraine levels, many households will be feeling the squeeze.
Experts warn that energy debt has become a significant issue, with £4.4 billion owed to suppliers and nearly 7 million people living in energy debt. The fuel poverty charity National Energy Action is calling on the government to use next week's budget to help tackle this problem by removing environmental levies from bills.
Martin Lewis, founder of MoneySavingExpert.com, believes that households with high electricity use will see their bills rise by 3% to 4%, while those relying more on gas for cooking and heating may avoid a significant increase. However, he argues that the current system is too expensive and not fit for purpose, advocating for a social tariff for vulnerable customers.
The government's clean power mission aims to bring down energy bills in the long term, but for now, millions of households will face another harsh winter with high energy prices.
energy prices are gonna surge again and it's just not right. i mean, what's the point of all these policies and levies if we're just gonna end up paying more for our basic needs? £4.4 billion in energy debt is crazy 
and it's only getting worse. national energy action should be calling for so much more than just removing environmental levies from bills. we need systemic change here. it's not fair to the vulnerable people who are already struggling to make ends meet. and martin lewis is right, the current system is just not working 
Ugh I'm getting so worried about our family this winter 
. With our kids at home more often due to school holidays and whatnot, our electricity bill is already through the roof 
. And now this? 5.1% increase on top of that? It's just not fair. We're trying to make ends meet as it is, and with these prices going up, it's like we're being squeezed in a vice 
. I'm not sure how much more our family can take. It's just one of those things that makes you wonder if we'll ever be able to get ahead 
.
. I'm not sure what the government's clean power mission is supposed to do for us in the long run, but for now, we just need some relief 
. Anyone else feeling this way? 
like what if you cant afford it and have to choose between paying bills or eating lol i feel so bad for those ppl who r already struggling to make ends meet and now they gotta deal with this 
. It's like, I get it, we need to reduce our carbon footprint and all that, but £4.4 billion in energy debt is crazy 
.
. And it's not just about helping those struggling, but also about promoting energy efficiency and sustainability in general.
. The views were literally breathtaking! I felt so small and insignificant, yet connected to nature at the same time. It's weird how a change in perspective can make you realize how much you take for granted, like having access to clean energy 
. I mean, think about it, some people don't even have that luxury 
. Anyway, back to the energy prices... I guess what really got me was the whole energy debt thing. £4.4 billion is a lot of money! 
Do you guys think we should be doing more to help out those struggling with their bills?
this winter and it's not just because they're trying to roast us 
! Anyone got a spare £3 or a magic solution? 
. It's not gonna bring down energy bills for everyone, just the ones who can afford it more. Not fair.
. Like, what's up with those environmental levies? They're supposed to be helping us save the planet, but really they're just adding to our bills. And now we're expected to just deal with it because some charity is crying about energy debt? 
I mean, come on, we've been through worse winters and still managed to pay our bills without going into debt. The only ones who are going to be hurt by these price hikes are the low-income households who can barely make ends meet anyway 
. I mean 28p might not seem like much but it adds up to £1,760 a year which is still way too expensive for some people 
️. Can someone explain to me how this works? I need to see some data or research on why prices can't be capped at a certain point 
. And those experts are just spewing out theories without any concrete evidence 
. Where's the proof that removing environmental levies will actually help people in energy debt? 
It's just not fair to people who are already struggling to make ends meet. And don't even get me started on the 'social tariff' idea - like, where's that gonna come from? 
. I think the government is right to try and help vulnerable customers, maybe they could introduce some kind of energy assistance scheme or something? But at the same time, I do think we need to make sure our energy prices are sustainable for the future 
.
.
like how can they do this to ppl? 
. The ones who use electricity for heating will feel the burn 
. We need some serious help 
from the gov't ASAP!