Compared to last year, this winter, millions of households using less than average energy will end up paying more. As per the Resolution Foundation, despite the falling energy price cap, one in every three households—roughly 7.2 million—would end up paying more.
On Friday, the energy regulator, Ofgem, will announce the cost of one unit of energy.
As several energy providers have gone bust, including Bulb, the fixed cost that customers pay to connect their homes to the grid has increased recently. The daily standing charge is used to offset supplier failure costs.
All of these factors will result in higher energy costs this winter for more than one-third (35%) of English households, or 7.2 million houses.
According to the foundation, nearly half (47%) of the least tenth of English households will see higher expenses.
Even though the price of energy is decreasing per unit, this will be offset by an increase in the daily standing charge and the end of the government’s universal £400 energy bill support program.
People who live in the most energy-intensive housing are those who stand to gain.
The cost of energy is rising for households that use less energy than they did last winter.
According to the Resolution Foundation, properties that use less than 79% of their usual gas and electricity use would be charged extra during the winter.
The additional expenses are reported to frequently be “significant,” as one in eight homes, or 2.7 million households, will see an increase in winter energy prices of £100 or more. The percentage here rises to almost a quarter (24%) of the lowest tenth of families.
As per the Resolution Foundation, senior economist Jonathan Marshall revealed that the cost of living crisis has not ended when the combined factors of rising food prices and housing costs are considered.
“Although government schemes have improved their targeting of support throughout the crisis to those most in need, significant gaps remain which should be urgently addressed to help the most vulnerable get through the challenging months ahead”, he stated.
“In the longer term, the government needs to reduce the UK’s dependency on gas, and improve the state of our home insulation, to prevent the winter energy crisis from becoming an annual occurrence.”
The Resolution Foundation aims to enhance the living standards of low- and middle-income households.
- Published By Team Timeswire