Households have been urged to check their energy meter readings as a price hike of 13% could come into force from today (July 1). Millions of people could be affected by the increasing cost across England, Scotland, and Wales. Guidance has been given to those who may need to take and submit a meter reading.
Anyone whose tariff is affected by regulator Ofgem‘s price cap and does not have a smart meter should take a reading to avoid previous usage being charged at the new, higher rate. Price rises are expected from today and though it may have a limited impact given the warmer weather, there is still a concern over how much Brits could be charged under the new rates.
New rates are expected to continue well into the end of the year, with Cornwall Insight suggesting the fall-out of the US-Israeli war with Iran are likely to squeeze Brits on their energy bills, BBC News reported.
Chancellor Rachel Reeves indicated some support could be provided in the autumn, although she may be replaced in the job under new Labour leadership by that time. Craig Lowery, principal consultant at Cornwall Insight, said: “The Iran ceasefire gave the markets some breathing room, but this is a pause, not a resolution to the conflict.
“What comes out of the final agreement, if there is one, will matter enormously for energy prices. Even in the best-case scenario, the enduring effects from the conflict will be with us for a while.”
The price hike under Ofgem’s new cap equates to an £18 a month rise for a household using a typical amount of electricity and gas. Households are seeing increases of 24% on thier gas bills, with a 5% rise in their electricity bills too. Standing charges remain almost unchanged.
Fuel poverty National Energy Action said the recent heatwave highlighted the need for debt relief and upgrading properties. Adam Scorer, its chief executive, said: “Energy inefficient homes take lives in winter and will increasingly threaten the most vulnerable in summer.”
Pensions and investment company Royal London representative Sarah Pennells added: “We are starting to see some signs of improvement in people’s finances. [But] the reality is that millions of people are still living very close to the edge and may be only one bill shock away from financial crisis.”