You are here: Home - Household Bills - News -

Energy bills could rise in April, NEA warns

0
Written by:
03/12/2021
The average cost of a gas bill in April could double compared to October last year due to an increased energy price cap, fuel poverty charity National Energy Action (NEA) has predicted.

 

NEA said the average annual gas bill stood at £467 a year in October 2020 and could rise to £944 in next year if estimated hikes to the energy price cap came in. 

Energy regulator Ofgem sets a cap on the maximum cost of energy tariffs to stop suppliers from passing expenses onto consumers. 

The last change to the cap came in on 1 October and saw the limit rise from £1,138 to £1,277 a year. This was due to increases in gas prices and the regulator warned further rises could come if prices remained high. 

NEA said an increased cap could push domestic energy prices up further, basing its estimate on predictions made by Cornwall Insight, Baringa and EnergyShop.com. In October, Cornwall Insight forecast that Ofgem would increase the price cap by 30% to £1,660 a year. 

Additionally, NEA said average combined domestic dual fuel bills could rise by £550 per year in April if the energy price cap increases. 

A combined domestic dual fuel tariff is when a home’s gas and electricity is from the same supplier.  

NEA has estimated that the average price of an annual gas bill could increase by as much as £350 in April, with the electricity bill increasing by £200, when compared to the current level of the cap. 

The charity also pointed out that average domestic energy bills had already soared by over £230 per customer compared to last winter. 

Adam Scorer, chief executive of NEA, said: “Every home should be a warm and safe place, but for over 4.5 million UK households the cold reality is very different and getting much worse.  

“The cost of living in the UK is at its highest level in a decade with household energy bills the biggest driver. When the costs of essential services go up, those on lowest incomes get hit hardest.” 

He added: “Bills have increased by well over £230 since last winter and millions now face a daily heat or eat dilemma. We estimate energy bills will rocket again in April, doubling the average householders’ heating bills since last year.  

“For people already on a budgetary knife-edge, the cost of keeping a family warm has exploded while budgets have collapsed. No amount of useful tips or savvy shopping can cope with that.” 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

Low-income pensioner? You could gain £3k top-up

Hundreds of thousands of retirees struggling with a low income are missing out on Pension Credit worth £3,300...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week