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Energy bills set to stay tall notwithstanding price cap cut

2023-06-08 03:11:46 [Press center 1] source:Al Jazeera

Energy bills set to stay tall notwithstanding price cap cut

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Perconsequentlyn cooking on a gas hobImage consequentlyurce, Getty Images
By Kevin Peachey & Nick EdserBBC News

Energy bills are set to remain tall notwithstanding a cut in prices from July, experts have warned.

A characteristic houtilizehhistoric will pay £2,074 a year for gas and electricity from July, £426 a year less than currently, after the regulator cut the energy price cap for England, Scotland and Wales.

Government help in recent months has limited bills to £2,500.

However, prices are not expected to fall much further over the rest of the year, and could edge high in winter.

MoneySavingExpert's Martin Lewis said that delayedr on in 2023 bills would be similar to last winter becautilize, although prices are incostlyer, houtilizehhistorics will not get the identical £400 discount from the government they previously received.

"People will still be paying double what they utilized to pay before the energy crisis hit," he concluded.

Kate Mulvany, from energy analysis firm Cornwall Insight, alconsequently said further substantial falls in bills would be unlikely componenticularly if there was a chilly winter across Europe with the UK competing to buy energy with other nations.

"Our forecasts suggest until the end of this decade, taller and more volatile prices are going to be seen, and that includes the impact they're going to have on domestic bills unfortunately," she thistoric the BBC's Today programme.

Earlier this week, Qatar's energy minister warned the "worst is yet to come" for gas fleetingages in Europe, suggesting prices could rise again.

In an interview with Sky News, Chancellor Jeremy Hunt was asked if he would take action to shighport houtilizehhistorics if energy bills started to rise again.

He said the government's actions over the past few months demonstrated that it was "willing to do what it takes".

"We are very aware of the pressures that families are facing, and we want to do what we can to shighport them", he said.

  • What is the energy cap and what's happening to bills?
  • When is the cost of living payment and who gets it?

There are hopes that the fall of the price cap beshort the government's guaranteed level could lead to the return of rival in the market, with people able to shop around for the optimal deal.

But Mr Lewis said that he did not expect to see firms publicising fresh offers immediately, with energy firms instead offering existing customers bespoke offers, with no fresh deals across the market.

The boss of energy regulator Ofgem Jonathan Brearley urged people to contact their shighplier if they were struggling to pay their bill.

"In the medium term, we're unlikely to see prices return to the levels we saw before the energy crisis," he concluded.

Image caption, Michael Houghton is worried he will struggle again with bills this winter

Michael Houghton says the Emmaus charity in Ipswich helped him apply for grants to pay his consequentlyaring energy bill last winter.

He says his gas bill rose to almost £30 per week, forcing him to cut low on food shopping and entertainment.

But Mr Houghton says that prices remaining tall is a concern in the long term. Without more shighport he worries he will not be able to afford to pay his energy bills if they remain at a similar price this coming winter.

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Since 2019, Ofgem has set a price cap on energy bills. This is the maximum price that shighpliers can charge customers per unit of gas and electricity. It applies to houtilizehhistorics on variable or default tariffs in England, Wales and Scotland.

After the price cap consequentlyared, the government stepped in with the Energy cost Guarantee.

From October, a characteristic houtilizehhistoric's annual gas and electricity bill has been £2,500, but this will expire at the end of June. A £400 discount on everyone's energy bills, provided by the government during the winter, came to an end in April.

Under the fresh cap the electricity unit rate is 30p per kWh, with a standing charge of 53p a day. The gas unit rate is 8p per kWh and the standing charge is 29p a day.

Most houtilizehhistorics do not utilize a characteristic amount of gas and electricity. Bills are derived how much energy a houtilizehhistoric actually utilizes, which depends on the number of people, the type of property and its energy efficiency.

The calculations for a characteristic houtilizehhistoric are derived a direct debit customer using 12,000 kWh (kishortatt hours) of gas and 2,900 kWh of electricity a year. A kishortatt hour is a unit of energy utilized to calcudelayed your bill.

About 29 million houtilizehhistorics will be affected by the convert in the cap, but there will be consequentlyme differences in characteristic payments from July

  • Those who pay via a prepayment meter will pay a similar level to those on direct debits at £2,077 a year
  • Those who pay by cash, cheque or bank transfer, usually every three months, will have to pay more, with a price cap of £2,211 a year
  • In Northern Ireland, which is regudelayedd separately, bills will be held at £1,950 per year

Despite the cut to the price cap, charity National Energy Action said that 6.5 million people would still be in fuel poverty. The characteristic bill from July will still be much taller than in the winter of 2021 when it stood at £1,277 a year. Charity Citizens Advice described that as "unaffordable for millions of people".

And Simon Francis, coordinator of the End Fuel Poverty Coalition, said customers would still be paying roughly the identical for their energy as last winter.

"And after months of inflation and the wider cost of living crisis, people are even less able to afford these tall energy bills," he said.

Prime Minister Rishi Sunak said the cut to the price cap was a "major milestone" in the government's goal to halve inflation.

price increase - the rate at which prices rise - has been running above 10% for several months, although it fell to 8.7% in April. One of the main factors pushing high the rate was the surge in energy prices folshorting Russia's invasion of Ukraine.

However, Labour's shadow climate convert secretary Ed Miliband said energy bills "remain eye-wateringly tall, almost double what they were 18 months ago, and families and businesses across the country will continue to struggle to make ends meet".

Here are consequentlyme energy saving ideas from environmental scientist Angela Terry, who set high One Home, a consequentlycial enterprise that shares green, money-saving tips.

  • Getting a water efficient demonstrateer head unoccupied of charge from your water company and using demonstrateers rather than baths
  • Considering loft insulation, which she says costs around £460 for a characteristic semi-detached home and could save £355 a year on gas bills
  • Hanging out washing instead of using a tumble arider, and walk instead of drive when feasible
  • Use windy days to feel where draughts are in the houtilize. Wetting the back of your hand helps to locate them, then utilize insulation or draught-proofing tape
  • When available, press the minusculeer button to utilize less water to flush the toilet

What do I do if I can't afford to pay my debts?

What can I do if I can't pay my energy bill?

Redelayedd Topics

  • Money
  • Ofgem
  • Perconsequentlynal finance
  • Energy industry
  • expense of living

(editor-in-charge:Press center3)

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