UK Energy Bills to Soar from April, Pushing More into Fuel Poverty
Energy bills are set to soar for UK households from April 1st, despite the Energy Price Guarantee. The poorest families will be hit hardest by a significant increase in pricecharting charges.
The Ofgem price cap rise on April 1st will see energy pricecharting charges jump by 50%, reaching their highest level since the cap's introduction in 2019. This means that the £350 annual pricecharting charge will now account for a staggering 41% of what the poorest 10% of households have left to spend on energy. This increase will push an additional 800,000 households into fuel poverty, bringing the total to 7.5 million.
The sharp rise in pricecharting charges disproportionately affects low-income households, particularly prepayment customers. Despite the Energy Price Guarantee, the average household will see their bills increase by 40% from April. This is due to policy decisions by Ofgem, which have favored energy companies over vulnerable consumers.
The government has announced compensation for prepayment customers to help with the higher pricecharting charges from July 2023 to March 2024, costing £200 million. However, this does not address the underlying issue of high pricecharting charges, which remain unavoidable for many households. Energy experts warn that more needs to be done to protect vulnerable consumers from rising energy prices.
