UK households are bracing themselves for the biggest increase in energy bills in a decade, with the typical annual bill for England, Wales and Scotland set to increase to £1,928 from January 2022. However, how much each household actually pays will depend on factors such as how much energy they use, location, and payment method. Those using prepayment meters or paying by cash, cheque, or bank transfer will pay more than those on direct debits.
North Wales, Cheshire, and parts of Merseyside currently pay more than the average customer in the United Kingdom. Meanwhile, those in the northeast of England pay less. These differences in pricing are due to regional differences in the costs of producing, distributing, and supplying energy across the country.
Consumer groups have already warned that the current energy price cap is likely to increase significantly, with some suggesting a potential increase of up to £500 per year. This comes amid rising wholesale gas prices, increased network costs, and a surge in demand for natural gas amid the gradual recovery of the global economy.
Industry leaders, as well as experts, have argued that green energy initiatives frequently hit the poorest end of the socio-economic scale the hardest, especially with the increase in prices pushing more households into energy poverty. Many vulnerable customers may struggle to keep their homes properly heated and lit, leading to an increase in fuel poverty, particularly during the colder winter months
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