Households facing 54% rise to energy bills as price cap is lifted
03 February 2022
Households are set to face a large increase in energy bills from April after the regulator lifted the cap on default tariffs to £1,971.
Due to a quadrupling in energy prices since last year, Ofgem, the energy regulator, has lifted the maximum rate that suppliers can charge by £693 for an average dual-fuel tariff.
Low Carbon Hub CEO, Barbara Hammond, speaking on Jack FM, has called for more support for residents, especially those who are vulnerable and will be worst affected by the increase.
To offset the increased costs, the chancellor has announced 80% of households would receive £350 in support this year in response to the decision.
The Treasury is to offer households a one-off £200 discount on their energy bills this October, which they would be required to pay back in instalments of £40 a year over the next five years.
There is also funding available for homeowners who are vulnerable to the cold or are living in fuel poverty. If you think you may be vulnerable, refer yourself to the Better Housing Better Health (BHBH) team – they can provide vulnerable residents in Oxfordshire with advice and grants to improve energy efficiency in the home, lowering bills.
Residents will be looking for ways to decrease their energy bills and will be looking into new forms of heating technology, or energy efficiency measures for their homes.
However, due to the increased cost of living, and the largest energy bill increase on record, millions of households may be driven into fuel poverty, or less able to pay for upgrades to their home.
“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.”Jonathan Brearley, chief executive of Ofgem