Households are facing an enormous 80% rise in energy costs this October but what could it mean for bills in your area?
The rise in the energy cap announced by Ofgem follows on from a 54% jump in April, and a 12% rise in the previous October. Charities are warning 8.9 million households in the UK could be in fuel poverty this winter, with families no longer choosing between heating and eating, but unable to afford both.
READ MORE: Man arrested after elderly woman seriously hurt in hit-and-run
Based on the latest announcement the average bill for a customer paying by direct debit will be £3,549 a year.
That will have risen from £1,138 a year in April 2021, to £1,277 a year in October last year, and is up from £1,971 a year from April this year
Prepayment customers have seen an increase from £1,156 in April 2021, to £2,017 in April this year, with prices going up to £3,608 this October.
However, energy use varies across the country, meaning if your consumption is similar to the local average you could be facing bigger bills than those in other parts of the country:
Council // Median gas consumption – 2020 (kWh) // Median electricity consumption – 2020 (kWh) // Gas and Electric bill – Winter 21 // Gas and Electric bill – Summer 22 // Gas and Electric bill – Oct – Dec 22 // change from Summer 22 to Oct -Dec 22
Blackburn with Darwen // 13,333 // 2,812 // £1,290 // £2,020 // £3,672 // £1,652
Blackpool // 11,888 // 2,817 // £1,232 // £1,916 // £3,462 // £1,546
Burnley // 12,508 // 2,706 // £1,235 // £1,930 // £3,496 // £1,566
Chorley // 12,418 // 3,014 // £1,294 // £2,010 // £3,641 // £1,631
Fylde // 13,124 // 3,068 // £1,333 // £2,077 // £3,773 // £1,696
Hyndburn // 12,676 // 2,676 // £1,236 // £1,934 // £3,506 // £1,572
Lancaster // 12,081 // 2,835 // £1,244 // £1,935 // £3,499 // £1,564
Commute // 13,215 // 2,658 // £1,254 // £1,969 // £3,576 // £1,607
Preston // 12,129 // 2,822 // £1,243 // £1,935 // £3,500 // £1,565
Ribble Valley // 13,628 // 3,174 // £1,375 // £2,144 // £3,902 // £1,758
Rossendale // 13,875 // 2,965 // £1,343 // £2,103 // £3,831 // £1,728
South Ribble // 12,391 // 2,971 // £1,284 // £1,996 // £3,615 // £1,619
West Lancashire // 12,770 // 3,101 // £1,325 // £2,060 // £3,737 // £1,677
Wyre // 12,666 // 2,964 // £1,294 // £2,014 // £3,652 // £1,638
The most expensive neighborhoods
Neighborhood // Median gas consumption – 2020 (kWh) // Median electricity consumption – 2020 (kWh) // Gas and Electric bill – Winter 21 // Gas and Electric bill – Summer 22 // Gas and Electric bill – Oct – Dec 22 // change from Summer 22 to Oct -Dec 22
Waddington, Gisburn & Slaidburn // Ribble Valley // 16,991 // 4,469 // £1,772 // £2,753 // £5,063 // £2,309
Tockholes, Edgworth & Hoddlesden // Blackburn with Darwen // 18,404 // 3,552 // £1,644 // £2,600 // £4,800 // £2,200
Wilpshire & Mellor // Ribble Valley // 18,453 // 3,481 // £1,632 // £2,584 // £4,771 // £2,187
Aughton // West Lancashire // 17,541 // 3,522 // £1,603 // £2,528 // £4,657 // £2,129
Bickerstaffe & Newburgh // West Lancashire // 15,745 // 3,855 // £1,597 // £2,490 // £4,564 // £2,074
Parbold, Appley Bridge & Wrightington // West Lancashire // 16,301 // 3,694 // £1,588 // £2,486 // £4,563 // £2,077
Kellet & Lune Valley // Lancaster // 16,120 // 3,699 // £1,581 // £2,474 // £4,539 // £2,065
Lammack & Revidge // Blackburn with Darwen // 18,228 // 3,078 // £1,541 // £2,454 // £4,531 // £2,077
New Longton & Hutton // South Ribble // 15,892 // 3,449 // £1,522 // £2,387 // £4,377 // £1,990
Scarisbrick, Halsall & Haskayne // West Lancashire // 14,624 // 3,699 // £1,521 // £2,364 // £4,318 // £1,954
read more
Related Articles
read more
Related Articles
Thomas Lawson, chief executive of national poverty charity Turn2us said: “Today’s meteoric rise in the energy cap will cripple those of us in the UK already struggling to stay afloat. This is no longer a choice between heating and eating, but not being able to afford either. This is as big an emergency as the impact of Covid and needs a similarly confident government response.”
He implored the government to act with urgency and introduce a cap on energy costs that means people can heat their homes and turn on the lights this winter, and to increase Universal Credit and legacy benefits by a minimum of £25 a week. The cap doesn’t take into account current government support for consumers, which will bring bills down a bit. All households with a domestic electricity connection in Britain will get £400 off their bills in October, while there will be more help, up to £1,200, for those on low incomes, pensioners, and those with disabilities.
However, fuel poverty charity National Energy Action (NEA) estimates the rise will increase the number of UK households in fuel poverty from 4.5 million last October to 8.9 million this October. That’s even when the government’s support package is taken into account.
Adam Scorer, National Energy Action (NEA) chief executive, said: “The scale of harm caused by these price rises needs to sink in. A warm home this winter will be a pipedream for millions as they are priced-out of a decent and healthy quality of life. The government needs to immediately upgrade the household support package it first announced back in May. Households need money in their pockets to weather this storm or we are going to see millions in dangerously cold homes, suffering in misery with unimaginable debt and ill health.”
Previously, regulator Ofgem has set the cap twice a year for summer (between April and September), and winter (between October and March). From October this year, it will start setting it quarterly, so the next change will be in January.
read more
Related Articles
read more
Related Articles
Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many. The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year.”
Looking ahead analysts Cornwall Insight is forecasting that prices will rise from £3,549 in October to £5,387 in January, a 52% increase, and then to £6,616 in April, up another 23%. That would take the average monthly bill from £296 in October (already up from £164) to £449 in January and £551 in April. The energy cap is based on the costs of energy suppliers face. Primarily, this is the wholesale cost of gas and electricity, which has soared in recent months.
Chancellor Nadhim Zahawi has said the government was “working flat out” to develop a new package of support for consumers. He said: “This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”
READ NEXT:
