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UK energy bills expected to fall by £138 by April – although households expect rises on Thursday during the ensuing cold weather period.
Experts at Cornwall Insight said they expect energy bills to fall by £138, or 8%, to £1,620 a year when the cap is next updated in April, due to measures announced by the government in the recent budget.
headmaster Rachel Reeves It said that by scrapping the UK government’s energy company obligation scheme, the average household bill will be reduced by £150 from April. Tory Party in government.
Wholesale energy prices have also fallen in recent weeks, which will curb the rise in energy prices since April, according to Cornwall Insight.
But before that happens, energy bills for many households are set to rise on New Year’s Day, just as a series of cold health warnings are issued across large swathes of the UK.
An increase of 0.2% Natural gas power marketThe energy price cap will be equivalent to a rise of around 28p per month for the average household England, Wales and Scotland Standard variable tariffs remain in place.
This equates to an average total annual bill of £1,758, up from the current £1,755.
regulator Natural gas power market The cap increase announced in November was driven by financing for nuclear power projects and discounts on some households’ winter bills, it said on Thursday.
This includes funding government Sizewell C nuclear power station suffolk – Energy bills will increase by an average of £1 per household per month during the £38bn construction period.
The increase in fixed charges (what consumers pay each day to power their homes) is mainly due to costs associated with the government warming homes Discount plan.
Around 2.7 million low-income households, including 900,000 with children, are eligible for the £150 Discount this winter.
However, the regulator said the new price cap was £37 lower than a year ago, after adjusting for inflation.
Natural gas power marketThe price cap sets a maximum rate per unit and a fixed fee that can be charged to customers when they don’t have a fixed rate.
It does not limit the total bill because households still pay for the amount of energy they consume.
The increase in price caps comes as yellow warnings for ice and snow are issued in some areas. Scotland North of the Central Belt from 6 a.m. New Year’s Day to midnight January 2.
A Yellow Cold Health Alert has been issued northeast and northwest EnglandIt is expected to last until noon on January 5, with temperatures expected to drop to 3-5 degrees Celsius.
The UK Health and Safety Authority has issued a yellow health alert for colds London and the east, southeast and southwest Englandas well as eastern and west midlands and yorkshire and Humber.
Simon FrancisThe coordinator of the Coalition to End Fuel Poverty said: “This is a truly unhelpful situation, with households enduring a fifth winter in crisis over their energy bills. Small changes to the price cap are still hitting hard at households making the choice between heating and eating.
“people Continuing to live in a cold, damp home where the risks are not just discomfort but real dangers, including exposure to carbon monoxide. Young people, private renters and families with children are those most at risk. people Reduce heating, postpone repairs and try to block drafts to stay warm.
“Meanwhile, the wider energy industry has made more than £125 billion in UK profits since 2020, including those operating at companies on the brink of insolvency.” North Sea. This is not a crisis of scarcity but a crisis of priorities. Ministers must move beyond short-term price caps and get serious about tackling fuel poverty by investing in energy efficiency, reforming energy pricing, introducing a fair social tariff and fully funding warmer homes schemes. “
Which? Energy editor Emily Seymour said: “As we enter the coldest months of the year, many households will be worried about a slight increase in energy price caps in the new year.
“There are several deals on the market below the price cap, so now is a good time to shop around if you’re looking to get a fix. As a rule of thumb, we recommend looking for deals that are cheaper than the current price cap, are no older than 12 months, and don’t involve significant exit fees.
“If you are on variable electricity prices, be sure to submit a meter reading to ensure you are paying a cheaper rate for any energy you use before the new price cap comes into effect.”