More bad news for consumers …
Business energy prices are being raised again. The Regulator Ofgem says the rise is needed to cover suppliers’ ‘extra’ costs, which is in line with record increases of energy including petrol and diesel.
This price rise will affect approximately 11 million households in England, Wales and Scotland who have not switched suppliers or whose fixed contracts have lapsed. These households will see their bills rise by between £139 – £1,277 per year. Prepayment customers will be facing increases of approximately £153 per year.
This is bad timing for poorer families already struggling financially as many face losing £20 per week from Universal Credit. It’s a slap in the face to millions of households who already have stretched budgets. Covid-19 has left many out of work or unable to work. Charities warn this could have a devastating effect.
Some economies have recovered strongly from the Covid-19 pandemic. This in turn has upped the demand for energy. As a result, prices are at an all-time high. Business energy is linked with Wholesale. Wholesale prices fell after the first lockdown, as a result of this Ofgem reduced the cap by £84. Unfortunately, in February 2021 Ofgem then raised the cap by £96! Since that time Wholesale energy costs have risen by 50%, hence the latest increase. We are seeing ‘Unprecedented Rates’.
What Can We Do?
For the more financial vulnerable there is a £1.9million support fund. The aim of which is to reduce bills, manage debts and help with energy efficiency. For customers who are worried about their bills, they can try contacting their suppliers to discuss concerns, that is, if they can get hold of them of course!!
Is switching the solution? To some, yes, it is relatively easy to switch to a cheaper tariff or supplier. Unfortunately, for anyone with an energy debt, this will not be possible. Prepay customers also have limited options.
The above does raise the issue of energy efficiency. There are a number of energy efficiency solutions which could save households a lot of money every year. These would, as well as saving us money, reduce our carbon footprint.
We at Energy Renewals can help with all energy efficiency. We would be more than happy to help and advise you with our knowledge and expertise.
Energy procurement is our speciality. Please do contact us if you have concerns about the energy price rises or to discuss your current energy contract/renewal. We would be more than happy to help you.
We look forward to talking to you. Call on 01753 208125.