Displaying items by tag: energy bills

Ofgem has announced plans to offer 'no standing charge' energy tariffs and provide debt relief for struggling households. The standing charge, a fixed daily fee averaging 92p, has risen significantly in recent years and disproportionately impacts low-energy users and prepayment meter customers. The new tariffs will eliminate these charges, though higher unit rates for gas and electricity may offset savings for higher energy users. Additionally, Ofgem is proposing debt relief measures, including partial or full debt write-offs and debt-matching schemes, where suppliers match customers' repayments to reduce arrears. With energy debt exceeding £3.8 billion and average arrears rising 37% in the past year, these changes aim to alleviate financial strain on vulnerable households. Funding for the initiatives will be spread across network charges and energy suppliers, with plans to implement zero-standing charge tariffs by next winter. Ofgem also encourages households to register for support programs like the Priority Services Register and contact suppliers early if facing energy debt.

Energy bills are to rise in England, Wales, and Scotland; households using typical amounts of gas and electricity will now pay about £149 more, bringing the average bill to £1,717 a year. Experts are urging billpayers to submit accurate meter readings to avoid being charged for estimated energy use at the new, higher rate. This price increase comes as winter approaches, but without extra cost-of-living payments or universal winter fuel payments for pensioners, causing concern for many. The price cap, set by energy regulator Ofgem, has been adjusted, raising gas and electricity unit prices and standing charges. Energy debts have also risen, with households collectively owing £3.7 billion to suppliers. Support for vulnerable customers is available through initiatives by energy companies, and pensioners on low incomes may be eligible for pension credit. Forecasters are predicting a slight drop in prices in January, providing some relief, but many fear these increases will exacerbate financial difficulties for households already struggling with high costs.

Ofgem says a typical household gas and electricity bill will rise to £3,549 a year from October. Save the Children warned the rise could put young people's health at risk, with families unable to afford to heat their homes. Money expert Martin Lewis predicted grave consequences without more state help. Liz Truss has ‘ruled out’ further direct support for everybody to help cover the costs of surging energy bills, and was not considering further support like the £400 payment that all households will receive this winter. Rishi Sunak says the government must provide some direct support to everyone. Ovo Energy has proposed a ten-point plan for the Government to subsidise soaring gas and electricity bills so that the poorest households get the most support. A key proposal is for energy firms to borrow from a government-backed fund to subsidise bills.

An estimated 585,000 households - 13% of everyone renting in the private market - have energy bills included in their rent. Citizens Advice said renters could miss out on the £400 energy rebate and the warm home discount if they are not the bill payer because those are paid to the landlord. The charity Shelter said tenants whose energy bills were included in their rent or service charge will be at the mercy of their landlord passing on this much-needed support, as there is no specific legal obligation for landlords to do so. They are not allowed to overcharge tenants for energy used or make a profit on it, but this could happen if they pocket the government support and continue to charge the same rate for utilities. The Government is looking into this, as it has acknowledged it is not right. Landlords can only charge for energy used, the standing charge and VAT.

Electricity and gas bills for a typical household will go up by 54% in April because the energy price cap - the maximum amount suppliers in Great Britain can charge consumers - has been raised. Meanwhile oil giant Shell announced a huge increase in profits, four times the level recorded last year. The new price limit means 18 million households will pay £1,971 a year for gas and electricity. Another 4.5 million people on prepayment metres will see a bigger increase. The Chancellor plans to soften the blow via council tax rebates and help with bills. This would provide the majority of families with a total of £350 to help them adjust to higher prices. However many believe that with profits booming in recent months because of the spike in energy prices, the North Sea oil and gas producers who have recently made a fortune should be asked to contribute to ease the cost of living catastrophe.

When she checks her son at night, Sandy Birtles can hardly see her teenager for all the coats on his bed. The single mother of two says they have to be careful not to use too much hot water, and they do all they can to keep warm but the bills keep rising. ‘I do not have the heating on when the kids are at school. If I'm not running around and clearing up, then I'm wrapping up in a coat.’ She said that financial pressures mean she has been ‘penny-pinching all the time’, but rising energy bills have added to the strain. A charity has predicted that she - and millions of others - will face a particularly difficult bill shock early next April when domestic energy prices rise. Domestic gas bills will have doubled in 18 months. Pray for suppliers to give more support to struggling customers.