About a quarter of British households are so worried about their electricity bills they are considering spending next heating season without heat or hot water, a survey by Citizens Advice has suggested.
The concern follows plans by the national electricity market regulator to raise the cap on bills by another 9.2%, equal to 150 pounds or $195.
The Citizens Advice report said the percentage of those worried about the affordability of their electricity was substantially higher among households with children, where the percentage was 31%, and low-income households, where 39% were worried about the coming heating season.
The consumer advocacy group also reported that 48% of respondents in its survey had said they would have to turn down the heat or turn it off to survive winter financially. Another 34% said it would be difficult for them to afford food, mortgage payments, or childcare this winter because of higher electricity prices.
Citizens Advice called on the authorities to find a way out of this situation, saying that “While plans to focus the energy market on renewables could reduce energy bills in the long term, households in desperate need can’t afford to wait until then.”
The specific move that the Keir Starmer government could make, according to the organization, was to increase the amount of state help for energy bills to low-income households.
Earlier this year, energy consultancy Cornwall Insight forecast that electricity costs in Britain this year will come in at an average 113 pounds per MWh—double the historical average, City AM reported in January.
This week, the BBC reported that Ofgem, the market regulator, was likely to raise the energy bill cap by 9%, citing Cornwall Insight as the source of the forecast as electricity suppliers’ wholesale costs rose by 20% over the last few months. Ofgem will decide on the cap in October.
By Irina Slav for Oilprice.com
