COLDEST
WINTER IN A DECADE SET TO ADD £600 MILLION TO ENERGY BILLS
· Consumers
set to be hit by an unusually cold winter and an estimated further
price increase of up to 15% in the New Year
· Wholesale
prices have jumped by 123% for gas and 57% for electricity since the
weekend, and by 417% for gas and 262% for electricity since the
beginning of 2005
· The
average fuel bill could rise by £116 and those who’ve never
switched could face an annual energy bill of nearly £1000 in 2006
· Percentage of income spent on energy bills up 27% since 2001
With
the Met Office set to confirm tomorrow that we are expecting the
worst winter in 10 years, leading switching and comparison site
uSwitch.com, reveals 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.com, 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.com recommends the following measures:
Switch
supplier and you could make savings of up to £170 a year. For those
who do not have access to the internet, call uSwitch.com on 0800 093
0607 for more information
- Claim
your rightful 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 cost UK consumers £1.9 billion in unnecessary
energy use this winter, according to figures from the Energy
Saving Trust. 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. For more information visit www.est.org.uk
- Keep
your home between 21 and 24 degrees – this is the optimum
temperature recommended to keep you healthy. Keeping heating on
longer at a lower temperature is also cheaper than putting it on
for shorter periods at a higher temperature.
Business
Advisor Stockton |
