Nearly eight out of 10 people fear more energy price hikes - as the latest rise hits
As Ofgem's price cap increases again - and another rise is predicted in April - a survey shows most people are concerned about the UK's reliance on imported gas and electricity
Nearly eight out of 10 people are worried about the threat of yet more energy price hikes over the coming years, according to a poll.
The finding comes as energy bills for 26 million households across the country will rise from January 1. Regulator Ofgem’s energy price cap will increase by an average 1.2% to £1,738 per year for a typical household, on top of a near 10% jump in October. Industry experts Cornwall Insight predicts the cap would rise again - next April - by another 3%, to £1,785 a year.
The latest rise has been driven by wholesale energy costs - or what suppliers have to pay.
With households struggling through a fourth winter of the energy bills crisis, levels of energy debt have soared to record levels The average household’s energy bill will, from this week, be around 67% more expensive than in winter 2020/21 - around £700 a year for a typical home.
The survey by the Warm This Winter campaign found 79% of the public are worried about the potential for further energy price rises over the next five years. Two-thirds (67%) say they are concerned about the impact of the UK’s reliance on oil and gas, while over half (53%) are worried the country will not build renewables fast enough over the next five years.
Labour recently unveiled a package of measures to boost renewables to avoid the UK relying as much on imported energy. Plans include driving through controversial energy projects in a £200billion bid to cut household bills.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “The public have seen first hand the impact of the energy bills crisis - driven by the UK’s reliance on volatile energy markets. Millions of people are living in cold damp homes, unable to heat their homes to a safe temperature or racking up massive debts - with some even turning to loan sharks. To add insult to injury, around a quarter of what is spent on heating our draughty properties is wasted, because the UK’s old housing stock is some of the worst insulated in Europe.”
Caroline Simpson, spokesperson for Warm This Winter, said: “As the latest price cap rise means energy bills will be 67% above what they were in winter 2020/21 we need long term solutions. A comprehensive insulation programme is the quickest and easiest way to bring down bills permanently because in real terms the average household is paying more than £700 extra to use similar levels of energy as a few winters ago. We have 8.8 million adults living in cold damp homes, exposed to the health complications that come from living in fuel poverty.”
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: “The news of a rise in our forecast will be disappointing to households’ who will no doubt have been hoping for relief from recent cap rises. However, the turbulence in wholesale markets - a level of volatility we haven’t seen for months – reminds us to remain cautious of predictions, which could very well increase or decrease several times before the April cap is set.”
Elise Melville, energy expert at Uswitch.com, said: “The sudden change from a 1% to 3% increase in the April price cap prediction suggests that energy prices will remain uncertain into next year.”