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As the price rises, UK energy bills are subject to social tariffs, driving 500,000 homes into fuel poverty.Fuel poverty

The government called for the introduction of social tariffs to help struggling households pay for energy, as soaring prices could drive another 500,000 homes into fuel poverty this winter. Has been done.

Millions of invoice payers are as some of the UK’s largest energy companies are preparing to reveal one of the sharpest rises to energy price caps to date by regulators. He warned the minister that he would need additional help this winter.

Of gem, the regulator, Default dual fuel energy rate Since October, gas prices have skyrocketed to their highest level in 16 years in the past week.

The “unprecedented” global gas market surge could push Ofgem’s energy cap, which is calculated based on energy supply costs, to an average of £ 1,288 per year. According to activists, it will also add more than 500,000 homes to more than 3 million already in fuel poverty.

The impending crisis, in line with the end of government layoff payments by September, could be particularly devastating to families hit hard by the pandemic’s financial collapse.

Ofgem CEO Jonathan Brearley. Photo: Graeme Robertson / The Guardian

“This is hard news for every family,” said Jonathan Brearley, CEO of Ofgem. “therefore, My message to the energy company is clear – We need to provide all available help and support to customers who are struggling as a result of this price change. “

Some of the largest energy companies, including the UK gas, E.ON UK, EDF Energy and Scottish Power have forced the government to legislate social charges for energy below Ofgem’s price limit, either paying for heating or buying food. We are asking you to help those who do not.

E.ONUK CEO Michael Lewis said social tariffs are “one of the top priorities” of next year’s new energy law, “achieving a fair and just energy transition to net zero.” Show the intention of the government. ” , Make sure no one is left behind. “

Keith Anderson, CEO of Scottish Power, added that social rates should be built on the government’s existing warm home discounts.

“I know it’s complicated and requires a huge amount of work to do about how it works, but it’s a wise place for the industry to reach,” Anderson said. Told.

Industry-funded social fees may require each supplier to pay a total to the central pot based on the number of customers it serves. Discounted payments are repaid to suppliers based on the number of customers in fuel poverty.

For suppliers with a rich customer base, this scheme can add additional costs to your business. Two of the fastest-growing new suppliers on the market, Octopus Energy and Bulb Energy, said they opposed the demand for social tariffs. Ovo Energy said it had not developed a view.

A spokeswoman for Ofgem said: “We know that many families are suffering from the financial impact of Covid-19 and energy prices are rising. If someone is having a hard time paying energy prices, discuss options We recommend contacting the supplier. “

Government spokeswoman continues to make “significant progress” in tackling fuel poverty, “investing £ 1.3 billion to improve the energy efficiency of homes and significantly reducing energy prices for low-income households. I will support you. “

As the price rises, UK energy bills are subject to social tariffs, driving 500,000 homes into fuel poverty.Fuel poverty

Source link As the price rises, UK energy bills are subject to social tariffs, driving 500,000 homes into fuel poverty.Fuel poverty

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