The rise in energy costs which took place on 1st October will see households paying between £139 and £153 more to heat their home over the next 12-months. That's the difference of between £34.75 and £38.25 a month.
The price increase has come just as winter hits, with millions of people starting to switch on their central heating ahead of the drop in temperature. This has left thousands worried about covering the costs and keeping their homes warm this year. According to Heating and Plumbing Monthly, when asked who was to blame for the current crisis, respondents said the government and energy suppliers shared responsibility, with 26.4% blaming the energy suppliers, 24.9% the government, and 12.9% the regulator Ofgem.
According to the Government sources, the increase in gas prices in winter 2021 is due to the harsh winter of 2020/21, this has put gas reserves at an all time low and therefore increased the demand on our valuable resources. The wholesale price of gas has hit a record high which has in turn put many energy suppliers out of business this year. At the start of 2021, there was over 70 energy suppliers in the UK, it is predicted that by the end of the year, fewer than 10 will have survived.
It is a simple case of supply and demand, the supply is limited, the demand is high and those larger surviving companies can now increase the price by dominating the market. The PPT (price per therm) in 2016 was at less than 50p, this winter this will be maxing out at over 185p per therm, which is a hike of over 270% in just 5 years!
For many, the price increase has left them worried about covering the cost of the bills with over 60% of participants surveyed worrying about switching their heating on. Many are looking for alternative means of heating their home or reducing the length of time their central heating will be switched on for this winter. There are grants and other funding available to help those struggling with the bills at this time of year.
You can usually get a Winter Fuel Payment if you were born on or before 26 September 1955.
This funding is accessible to those recieving:
You might be able to get £140 off your electricity bill under the Warm Home Discount Scheme if you’re either:
You can find out more on the Citizens Advice website. Or if you're looking to upgrade your central heating and boiler system to something more reliable and cheaper to run each year, contact Mayne Gas Heating today.
