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Energy price cap: Typical energy bill set to rise by £800 a year in October

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Tori_Scope
Tori_Scope Scope Posts: 12,505 Disability Gamechanger
The energy price cap is expected to increase to £2,800 a year, which is almost £1,000 more than the rise in April. 

Taken from Energy price cap: Typical energy bill set to rise by £800 a year in October (BBC)
The typical household energy bill is set to rise by about £800 a year in October, the energy regulator warns.

A household is in fuel poverty when it has to spend 10% or more of its disposable income on energy.

Ofgem boss Jonathan Brearley said the energy price cap, which limits how much providers can raise prices, is expected to increase to £2,800 a year, due to continued volatility in gas prices.

Mr Brearley said the price rises were a "once in a generation event not seen since the oil crisis in the 1970s".

He also said the number of people in fuel poverty may double to 12 million.
The energy price cap already rose sharply in April to £1,971, meaning that homes using a typical amount of gas and electricity are now paying an extra £700 per year on average.
It means the typical household bill could rise by £800 per year.

Disabled people are often hit particularly hard by these rises. In March 2022, just before the initial rise, iNews wrote:

The number of disabled people struggling to pay their fuel bills could more than double this year due to soaring energy costs, new research shows.

Currently, around 900,000 people with disabilities are considered to be in fuel poverty and should bills rise, this number could jump to 2.1 million, according to the charities Scope and National Energy Action.

People with disabilities often have extra energy needs, resulting in more use of power.

This includes needing more energy to keep heating on for medical reasons, or using electricity for equipment.

Over to you...

How do you feel about the news of another possible rise in the energy price cap?

Do you think disabled people are disproportionately affected by these rises? Is this something that's impacted you?

What do you think should be done?
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Comments

  • leeCal
    leeCal Community member Posts: 7,550 Disability Gamechanger
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    I think disabled people are affected more especially if they have mobility problems or problems which prevent them from leaving the house. Obviously that means more time inside a house which needs heating. This also applies to older generations, so pensioners are also adversely affected by high energy prices and the need to heat their homes. Additionally unemployed people are also likely to be at home and will need to heat their homes.

    its a really bad situation for a huge swathe of society.

    “This is my simple religion. No need for temples. No need for complicated philosophy. Your own mind, your own heart is the temple. Your philosophy is simple kindness.” 
    ― Dalai Lama XIV

  • vikingqueen
    vikingqueen Scope Member Posts: 1,455 Disability Gamechanger
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        What has annoyed me most in all of this is the standing charge on my electric has more than doubled, so I pay  42p a day before any usage. Pure greed in my opinion.
  • woodbine
    woodbine Community member Posts: 11,817 Disability Gamechanger
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    If I'm honest I think all sectors of society (except the well off) are adversely affected by massive hikes in prices which includes energy, and also food and other things we can't live without. A recent study showed that the "average" family of four are £400 a month poorer than they were a year ago.
    The question is what can be done about it, or more to the point how will the govt. be able to help.
    The answer is to both very little. We are stuck in an inflationary cycle that will have to burn itself out, other countries are suffering as well some less than us some more than us. The main drivers of inflation are increases in fuel prices of all types, the war in Europe and too much money chasing a shortage of goods, people might also tell you that Brexit has some of the blame this really isn't the case.
    This period of inflation will eventually blow itself out but it will do some damage before it's done, one of the main solutions will have to be an increase in interest rates, my guess would be that the UK will see interest rates at 3.25% within a year, this will in turn lead us into a recession, which will increase unemployment, at that point inflation will start to slowly ease back.
    Hold tight it's going to be a bumpy ride for most of us.
    2024 The year of the general election...the time for change is coming 💡

  • Ross_Alumni
    Ross_Alumni Scope alumni Posts: 7,652 Disability Gamechanger
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    Now would be a really good time for a new energy source to be discovered, like in Monsters Inc where they find out laughter can power a whole city. Let's all laugh, see what happens. 

    Summer is going to be challenging, but at this rate the winter is going to be really tough for so many people.
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  • Cherry24
    Cherry24 Community member Posts: 1 Listener
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    Will everyone on UC get the 650 the government has announced or is just people on jsa and esa and income support? I'm confused 
  • MarkM88
    MarkM88 Community member Posts: 3,127 Connected
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    Cherry24 said:
    Will everyone on UC get the 650 the government has announced or is just people on jsa and esa and income support? I'm confused 
    UC is included in the list. 
  • poppy123456
    poppy123456 Community member Posts: 55,312 Disability Gamechanger
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    Cherry24 said:
    Will everyone on UC get the 650 the government has announced or is just people on jsa and esa and income support? I'm confused 
    https://www.gov.uk/government/publications/cost-of-living-support/cost-of-living-support-factsheet-26-may-2022

    £650 one-off Cost of Living Payment for those on means tested benefits:

    • More than 8 million households on means tested benefits will receive a payment of £650 this year, made in two instalments. This includes all households receiving the following benefits:Universal Credit
    • Income-based Jobseekers Allowance
    • Income-related Employment and Support Allowance
    • Income Support
    • Working Tax Credit
    • Child Tax Credit
    • Pension Credit
    • DWP will make the payment in two lump sums – the first from July, the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.
    • Claimants will need to be in receipt of one of these benefits, or have begun a claim which is later successful, as of 25th May 2022 to be eligible for the first of the two instalments.

    What isn't clear is whether all multiple household members that each receive one of the qualifying benefit which each receive the payment or whether it's limited to 1 payment per household.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • racyguy
    racyguy Community member Posts: 560 Pioneering
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    Personally why bother to fix it when you can't.
    We had a 1 year fixed term dual fuel account from July 2021. We live in a 20 year old 3 bed semi that just suits us fine. Up until June last year we were paying £744 a year to EON. Then it was fixed with them at £1476 a year. As the current arrangement is up for renewal next month, EON have advised us that we should go onto the variable scheme costing at least £2475 a year. They offered a 1 year fix starting next month at £3644 a year.
    It's just the two of us (both nearing 80) so what is the point of having a cap currently at £1900? 


  • calcotti
    calcotti Community member Posts: 10,010 Disability Gamechanger
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    racyguy said:
    .. what is the point of having a cap currently at £1900? 
    The cap is not a fixed amount you pay. The cap sets a maximum rate your supplier can charge you. The actual amount you may be liable for depends on how much energy you consume.

    What you should check is whether the estimated usage your supplier is using to estimate your payments reflects your actual usage. How easily you can do this depends on how regularly you provide meter readings.
    Information I post is for England unless otherwise stated. Rules may be different in other parts of UK.
  • woodbine
    woodbine Community member Posts: 11,817 Disability Gamechanger
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    As above the cap is exactly that a cap, for my money the best bet is to go back to paying a quarterly bill, we are on a fix for electricity (no mains gas) until Sept, but we will come off DD then.
    2024 The year of the general election...the time for change is coming 💡

  • vikingqueen
    vikingqueen Scope Member Posts: 1,455 Disability Gamechanger
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       I've always paid my electric and gas quarterly  I can put my readings in at anytime and it tells me exactly how much I owe so I can budget very well. I'm not too worried about the rises as I live on my own and tend to only use what I need. The £400 will more than likely cover nearly a years electric for me. 
  • Biblioklept
    Biblioklept Community member Posts: 4,737 Disability Gamechanger
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       I've always paid my electric and gas quarterly  I can put my readings in at anytime and it tells me exactly how much I owe so I can budget very well. I'm not too worried about the rises as I live on my own and tend to only use what I need. The £400 will more than likely cover nearly a years electric for me. 
    I don't think my usage has ever been that low!!! Is your cooking and heating on gas?
  • Cartini
    Cartini Community member Posts: 1,108 Pioneering
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       I've always paid my electric and gas quarterly  I can put my readings in at anytime and it tells me exactly how much I owe so I can budget very well. I'm not too worried about the rises as I live on my own and tend to only use what I need. The £400 will more than likely cover nearly a years electric for me. 
    I, too, live on my own and my payments are quite low.  I pay £45 a month for both gas and elastic trickery, but I only use about £28 (May`s bill) of that to pay the bills, with the rest going to credit which will cover the extra use during the colder months.
    Likewise, I`m not concerned about the energy caps because I turn my heating off on May 1st (If unusually warm, I turn off earlier and leave on longer if unusually cold) and I turn it back on for 1st Oct (again, temperature dependant).
    I had solar panels installed in 2015 and they are now proving to be a massive benefit.  Over the warmer months, when it`s very bright or sunny, I adapt my routine (showers / laundry/ cooking etc) to fit the periods the panels are generating sufficient energy to prevent use of the National Grid.

  • vikingqueen
    vikingqueen Scope Member Posts: 1,455 Disability Gamechanger
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       @Biblioklept I use an electric cooker but I tend to batch cook and also a pressure cooker which cuts down on energy. I have gas central heating but I seldom use it as I have a multi fuel stove which only costs me about £120  a year as I only use it for about 5 months. I don't really feel the cold. 
  • Biblioklept
    Biblioklept Community member Posts: 4,737 Disability Gamechanger
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    What sort of things can yo cook in a pressure cooker @vikingqueen
  • vikingqueen
    vikingqueen Scope Member Posts: 1,455 Disability Gamechanger
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         You can cook almost anything in a pressure cooker @Biblioklept, I tend to do stews, broth, soups, steamed puddings, they are very versatile, and quick to cook in.  A quick google will show 100s of recipes. 
  • racyguy
    racyguy Community member Posts: 560 Pioneering
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         You can cook almost anything in a pressure cooker @Biblioklept, I tend to do stews, broth, soups, steamed puddings
    Ummm yum yum!
  • racyguy
    racyguy Community member Posts: 560 Pioneering
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    Well after the phone call to EON today I just give up. I told them that I don't qualify for the most of what the government are offering (not receiving any sort of means tested benefits) so what can they do to help me with the costs they are saying I will have to pay.

    "Nothing, but if you are in fuel debt then we could help out with grants to lower the debt" 

    No use to me then.

    Off to the shed to get out my great grandfathers ornate oil lamp and the can of paraffin. Gave it a bit of a clean and lit it -it works like a treat. I have the feeling that it's going to be the 40/50's all over again. 
  • poppy123456
    poppy123456 Community member Posts: 55,312 Disability Gamechanger
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    racyguy said:
    Well after the phone call to EON today I just give up. I told them that I don't qualify for the most of what the government are offering (not receiving any sort of means tested benefits) 
    You will receive the winter fuel payment plus the extra £300 on top, as well as the £400 energy rebate paid over a period of 6 months from October.
    I wouldn’t call that not qualifying for most of what the government have announced.
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
  • woodbine
    woodbine Community member Posts: 11,817 Disability Gamechanger
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    It appears to me that some people do "protesteth too much "
    2024 The year of the general election...the time for change is coming 💡

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