Warning over fuel poverty as winter sets in
-24/11/05
As the coldest winter in a decade
Warning over fuel poverty as winter sets in
-24/11/05
As the coldest winter in a decade is set to add £600 million to energy bills, the poorest 10% of the population are now spending almost one tenth of their income on their energy bills which is perilously close to the industry definition of ìfuel poorî a web site has warned.
With the Met Office set to confirm tomorrow that we are expecting the worst winter in 10 years, switching and comparison site uSwitch, has suggested that the arctic freeze forecast for this winter is set to add £600 million to the nationís energy bill.
The last time the UK suffered from an unusually cold winter (1995/96) energy consumption swelled by 5% per household.
Based on todayís prices this would bump up the nationís energy bill by £600 million. Furthermore, recent price rises mean that consumers who wish to turn up their thermostat by 1 degree to keep warmer, will have to pay an extra £57 – 46% more than four years ago.
Alan Tattersall, Director of Home Services at uSwitch, states: ìThis could be the most expensive winter people have faced for many years. Freezing temperatures mean that the amount of energy used just to keep warm and healthy this winter, would result in energy bills soaring.
ìBy the end of this year, customers will have seen their energy bill rise by at least 16% or over £100.
ìIn addition, the poorest 10% of the population are now spending 9% of their income (up 27% since 2001) on their energy bills which is perilously close to the industry definition of ìfuel poorî, which is 10%. We are concerned that further increases in the New Year could see vulnerable groups struggling to keep warm this winter.î
The average consumer bill will have risen by over £100 by the end 2005 to a total of £770. In a double whammy, energy customers should brace themselves for price hikes in the region of 15% by major energy suppliers as early as the first quarter of 2006 (possibly pushing the average fuel bill up by a further £116). These anticipated prices increases come in the wake of burgeoning wholesale gas prices that have risen by 417% since the start of the year.
The combined impact of a volatile market, price increases by all major suppliers and a harsh winter means that consumers who have never switched could pay close to £1000 for their gas and electricity by early next year.
To exacerbate the issue, data from the Met Office between 1971 through to 2000 shows that February has, on average, the coldest minimum temperatures – suggesting that the worst of the weather is still to come.
To help mitigate this and ensure that people keep warm this winter, uSwitch recommends the following measures:
– Switch supplier and you could make savings of up to £170 a year.
– Claim benefits and grants. Everyone over 60 should claim the Winter Fuel Payment and there are many other benefits and grants to which you may be entitled. Call SeniorLine to find out more: 0808 800 6565
– Apply for grants and programmes. There are many free products and services designed specifically for older people, such as the British Gas ‘Here to HELP’ programme. Contact major energy suppliers to find out what they offer.
Inadequate insulation could also be costing UK consumers £1.9 billion in unnecessary energy use this winter, according to figures from the Energy Saving Trust. You can save up to £250 by making some simple energy efficient changes such as investing in loft insulation, using a draft excluder and changing normal for energy efficient light bulbs.
To compare energy prices and find your cheapest supplier click here
To find out how you can save on your bills click here
For more ways to compare energy prices click here
Warning over fuel poverty as winter sets in
-24/11/05
As the coldest winter in a decade is set to add £600 million to energy bills, the poorest 10% of the population are now spending almost one tenth of their income on their energy bills which is perilously close to the industry definition of ‘fuel poor’ a web site has warned.
With the Met Office set to confirm tomorrow that we are expecting the worst winter in 10 years, switching and comparison site uSwitch, has suggested that the arctic freeze forecast for this winter is set to add £600 million to the nation’s energy bill.
The last time the UK suffered from an unusually cold winter (1995/96) energy consumption swelled by 5% per household.
Based on today’s prices this would bump up the nation’s energy bill by £600 million. Furthermore, recent price rises mean that consumers who wish to turn up their thermostat by 1 degree to keep warmer, will have to pay an extra £57 – 46% more than four years ago.
Alan Tattersall, Director of Home Services at uSwitch, states: ‘This could be the most expensive winter people have faced for many years. Freezing temperatures mean that the amount of energy used just to keep warm and healthy this winter, would result in energy bills soaring.
‘By the end of this year, customers will have seen their energy bill rise by at least 16% or over £100.
‘In addition, the poorest 10% of the population are now spending 9% of their income (up 27% since 2001) on their energy bills which is perilously close to the industry definition of ‘fuel poor’, which is 10%. We are concerned that further increases in the New Year could see vulnerable groups struggling to keep warm this winter.’
The average consumer bill will have risen by over £100 by the end 2005 to a total of £770. In a double whammy, energy customers should brace themselves for price hikes in the region of 15% by major energy suppliers as early as the first quarter of 2006 (possibly pushing the average fuel bill up by a further £116). These anticipated prices increases come in the wake of burgeoning wholesale gas prices that have risen by 417% since the start of the year.
The combined impact of a volatile market, price increases by all major suppliers and a harsh winter means that consumers who have never switched could pay close to £1000 for their gas and electricity by early next year.
To exacerbate the issue, data from the Met Office between 1971 through to 2000 shows that February has, on average, the coldest minimum temperatures – suggesting that the worst of the weather is still to come.
To help mitigate this and ensure that people keep warm this winter, uSwitch recommends the following measures:
– Switch supplier and you could make savings of up to £170 a year.
– Claim benefits and grants. Everyone over 60 should claim the Winter Fuel Payment and there are many other benefits and grants to which you may be entitled. Call SeniorLine to find out more: 0808 800 6565
– Apply for grants and programmes. There are many free products and services designed specifically for older people, such as the British Gas ‘Here to HELP’ programme. Contact major energy suppliers to find out what they offer.
Inadequate insulation could also be costing UK consumers £1.9 billion in unnecessary energy use this winter, according to figures from the Energy Saving Trust. You can save up to £250 by making some simple energy efficient changes such as investing in loft insulation, using a draft excluder and changing normal for energy efficient light bulbs.
To compare energy prices and find your cheapest supplier click here
To find out how you can save on your bills click here
For more ways to compare energy prices click here