As winter approaches, a 10% price rise for domestic gas and electricity has gone into effect in England, Wales, and Scotland. This comes as debate continues over the withdrawal of additional support for those on low incomes. The typical household using gas and electricity will pay £1,717 annually, which constitutes a £149 rise. Around 10 million pensioners will suffer as winter fuel payments are withdrawn, amidst the debate. However, energy firms have reassured customers that struggling and vulnerable people will be receiving their help.
The price is being calculated by the energy regulator Ofgem, which governs the prices of energy for approximately 27 million homes in England, Wales, and Scotland. The price cap is set every three months and affects the price paid for each unit of gas and electricity. Under the cap’s influence, prices have fallen twice this year, in April and July, now increasing by approximately £12 a month for a typical household at the start of October. Therefore, prices paid will depend on the energy usage. To calculate the effect on the annual bill, bill payers can add 10% to their current bill.
Charities have expressed that many people will struggle to cover their costs due to domestic expenses’ general cost in the country. However, energy firms have stated that they will help struggling and vulnerable customers. The sector’s trade body, Energy UK, stated that additional support, totalling £500m, has been given to those in need.
Furthermore, the previous winter fuel payment, worth up to £300, is now only available to those on low incomes and who receive certain benefits. Some previous recipients claim that they do not need the payment; however, charities are concerned about those who are struggling on a comparatively small income. Nonetheless, forecasters have given some comfort as consultancy Cornwall Insight has predicted that the next cap coming into effect in January will probably bring a 1% fall, leading to an annual bill of £1,697 for a typical household using a standard amount of energy
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