As Ofgem unveils the January price cap, stakeholders in the energy industry highlight concerns about the potential challenges facing consumers, particularly during the coldest part of the year.
Gillian Cooper, Director of Energy at Citizens Advice, emphasizes the difficulties that the price hike will pose for millions already struggling with bills.
Cooper notes the missed opportunity in the Autumn Statement for additional government support, leaving households in a predicament where they might have to choose between heating and essential expenses.
Gillian Cooper said: “Yesterday, the government missed the opportunity to announce extra support for households who desperately need it this winter. The lack of action means far too many households will now be forced to choose between heating and eating this winter.
“We urgently need the government to honour its commitment to look at options for providing targeted financial support with energy bills from April 2024.”
Energy UK’s Deputy Director, Daniel Portis, acknowledges the predicted rise in energy bills, expressing that customers will be paying as much or more than they did a year ago.
Mr Portis said: “Suppliers continue to step up the support they provide to customers struggling to afford their bills through direct financial assistance and emergency credit, as well training frontline staff to help callers further.
“They have worked closely with charities and consumer groups, including signing up to voluntary commitments to support customers in debt – but the industry cannot solve an affordability problem of this scale on its own.
“We continue to urge the government to look at putting in place targeted support for those most in need this winter.
Matthew Cole, Head of the Fuel Bank Foundation, voices concerns for vulnerable households unable to afford heating.
Mr Cole said: “Based on the new price cap rate, the average prepayment meter energy bill will still be around £2,000 a year. Prepayment meter customers also pay, on average, an extra £313 to heat their home during the winter months, compared to direct debit customers, whose payments are evenly spread throughout the year.
“On top of this, higher mortgage and rent payments, inflated food costs, and previously accrued debts are adding further strain to already thinly stretched household budgets.”
National Energy Action Chief Executive Adam Scorer criticises the lack of direct support in the Autumn Statement.
Adam Scorer said: “Yesterday in the Autumn Statement, there was zero direct support for households struggling with sky-high energy bills. Today Ofgem announces from January those bills will be even higher as typical households will be paying £100 more – just after Christmas and as the weather will get even colder.
“For those already saddled with paying back the £2.6 billion of household energy debt or self-disconnecting from energy to avoid that debt it’s devastating and this increase will mean millions will struggle in cold and unsafe homes.”
