Households urged to check energy meters – 13% price hike from July 1 | UK | News
Households were asked to check the readings of their energy meters on the grounds that the 13 percent price increase could come into force as of today (July 1). Millions of people could be affected by rising costs in England, Scotland and Wales. Guidance has been given to those who may need to have meter readings done and sent.
Anyone whose tariff is affected by the Ofgem regulator’s price cap and who does not have a smart meter should take a reading to avoid previous use being charged at the new, higher tariff. Price rises are expected from today and although the impact will be limited due to the hot weather, there are still concerns about how much Brits could be charged under the new rates.
The new rates are expected to remain in place until the end of the year; Cornwall Insight suggests that the end of the US-Israeli war with Iran will cause a strain on British energy bills. BBC News reported.
Chancellor Rachel Reeves has indicated that some support could be provided in the autumn, but that she could be put in place under new Labor leadership by then. Craig Lowery, chief consultant at Cornwall Insight, said: “The Iran ceasefire has given markets some breathing room, but it is a pause, not a solution to the conflict.
“The outcome of the final agreement, if there is one, will be extremely important for energy prices. Even in the best-case scenario, the lasting effects of the conflict will be with us for some time.”
The price increase under Ofgem’s new cap equates to an increase of £18 per month for a household using typical amounts of electricity and gas. While there is a 24% increase in natural gas bills of households, there is also a 5% increase in electricity bills. Standing wages remain virtually unchanged.
Fuel poverty National Energy Action said the latest heatwave had highlighted the need to alleviate debts and improve properties. Adam Scorer, the company’s chief executive, said: “Energy-inefficient homes take lives in winter and will increasingly threaten those most vulnerable in summer.”
Sarah Pennells, a representative at pensions and investment company Royal London, added: “We are starting to see some signs of improvement in people’s financial situations. [But] “The reality is that millions of people are still living on the edge and may be just one bill shock away from financial crisis.”
