Energy Price Crisis: Update

Ofgem have this morning announced that the energy price cap will hit £3,549 in October. This means that between October 2021 and October 2022, the price will have grown by 178% as in winter 2021/22 the cap was set at £1,277.

The £3,459 figure announced this morning is the cap for those on average use, so includes bills such as dual fuel and direct debits. The new cap for standing charges and unit rates have been announced as the following:

Electricity 

• Daily standing charge was 45.3p now 46.3p
• Unit rate kWh was 28.3p now 51.8p
   

Gas:

• Daily standing charge was 27.2p now 28.4p
• Unit rate per kWh was 7.4p now 14.8p

(The unit rate usages here are based on averages, unfortunately this figure varies from region to region).

Money saving expert Martin Lewis has published this estimation tool which you can access here.
Please note this will be an estimation of the price you could be paying after the price cap increase.

We are becoming increasingly concerned with the impact this will have on many households, charity buildings and village halls in the upcoming winter months. National Energy Action (NEA) the fuel poverty charity, have estimated that “from October National Energy Action predicts 8.2 million UK households could be in fuel poverty – that’s one in three.”

In West Norfolk in particular, the estimation of households that will be in fuel poverty from October 2022 is predicted to be 44,046 (40%) by the End Fuel Poverty Coalition.

NEA defines fuel poverty is defined by these three key factors:

• Household income.
• Household energy requirements – energy efficiency is a key driver of fuel poverty, as higher energy efficiency reduces a household’s fuel costs for a particular size of property. 
• Fuel prices – the energy price cap, which keeps suppliers from setting their default tariff higher than a set amount, is largely determined by wholesale energy prices.

Being in fuel poverty means that many households and charity buildings will be led into unsustainable debt and measures. It is common for people struggling with energy bills to ration their energy, disconnect themselves from prepayment meters and live in increasingly cold and damp homes. Living in homes like this is not sustainable and it will impact vulnerable individuals, people with pre-existing chronic medical conditions, and households with children.

In a press release yesterday, Action with Communities in Rural England (ACRE) stated:

​ “Estimates of the number of people who will find themselves in situations where they cannot afford to heat their home this winter are staggering.”

Further to this, Richard Quallington, Executive Director of ACRE has said:

​“The fact rural parts of the country are some of the worst affected is no surprise to us. Much of the housing stock in the countryside is older and more difficult to heat and many households still depend on heating oil which is not subject to the price cap."

You can read the full press release here.

How we can help

• We have collated an article detailing the support that is available to Norfolk residents here.
• If you are using heating oil to warm your home you can join our community oil buying scheme ThinkingFuel here.
• If you are a village hall or charity premises, ACRE are looking for case studies on how the energy price rise is affecting you. The survey can be found here.​
• Or, you can get involved in our energy campaign targeted at charities and village halls here.
• Centre for Sustainable Energy have information on how to save energy in your village hall here.