Bevan Foundation warns Welsh homes will go cold this winter as Ofgem increases price cap by 10%
Video report by Issa Farfour
There are warnings that households in Wales will go cold this winter, as Ofgem announces a 10% increase to the energy price cap.
Ofgem’s energy price cap will increase from £1,568 to £1,717 from October 1 for a typical household in England, Scotland and Wales, the regulator has announced.
Ahead of Ofgem’s announcement on the Energy Price Cap, the Bevan Foundation warned that people will go cold this winter.
They say as the cost of gas and electricity has soared, "the number of people struggling to make ends meet has increased dramatically.
"There are growing concerns about how people will cope, with some facing another winter of having to choose between heating and eating."
Ofgem, the regulator, sets the price limit based on several factors including wholesale energy prices – the amount energy firms pay for gas and electricity before supplying it to households. It is updated every three months.
It means households could be going into the colder months facing higher bills than they have had from April this year, when the price cap was lowered.
Nevertheless, average bills remain considerably lower than during the peak of the energy crisis, which was fuelled by Russia’s invasion of Ukraine in February 2022, driving up costs in an already-turbulent energy market.
The expected £1,714 a year would be £120 less than the price cap in October last year, when it was £1,834.
The Bevan Foundation say "although some energy suppliers have energy suppliers have developed schemes to help people struggling to keep their homes warm, such as small grants, writing off debt and providing items such as heated blankets, new research suggests this support is not getting to everyone that needs it."
Joel Davies, Policy and Research Officer at the Bevan Foundation said “energy supplier schemes can and do make a real difference to people struggling financially, but we have found that some people are missing out on this vital lifeline.
"It is important to make sure that low-income households are receiving all the help they can get.”
The Foundation says it can be hard to find out about the help that energy companies offer, and that applying to the schemes is not always easy.
They say application deadlines are sometimes brought forward as suppliers have used their budget, eligibility criteria can be unclear and dealing with call centres is often a real challenge.
"Even if someone does get help, it is not always enough to make a real difference. Too often, people are left with nowhere to turn, just because they’ve fallen into energy arrears at the wrong time."
The Bevan Foundation’s Head of Policy for Poverty, Dr Steffan Evans said “people who should be getting help from energy suppliers are sometimes being left short and are forced to turn for help elsewhere.
"This is putting extra pressure on services such as foodbanks and advice workers which are already stretched. As we head into what is likely to be another difficult winter, energy suppliers must up their game to make sure that their support schemes reach everyone who needs them.”
The Bevan Foundation say there are steps that should be taken to improve the current system, such as requiring energy suppliers to make their schemes more accessible and easier to apply for. Looking to the longer term, the Foundation says that action is needed to improve the help provided by suppliers and to make sure that the UK Government ensures that everyone has enough to cover the cost of everyday essentials such as energy.
"The Welsh Government needs to step up its investment in the energy efficiency of Wales’ housing stock, and energy suppliers, Ofgem and the UK Government must work together to improve the affordability of energy prices for low-income households."
The Welsh Government spokesperson says “we will invest £30m to improve home energy efficiency in lower income households again this year, and we are also working with local authorities to help people take advantage of the GB-wide ECO Flex scheme in Wales.
Secretary of State for Energy Security and Net Zero Ed Miliband said: “This will be deeply worrying news for many families. The rise in the price cap is a direct result of the failed energy policy we inherited, which has left our country at the mercy of international gas markets controlled by dictators.
“The only solution to get bills down and greater energy independence is the government’s mission for clean, homegrown power. That's why we have hit the ground running, lifting the onshore wind ban, consenting unprecedented amounts of solar power and setting the largest ever budget for our renewables auction.
“We will also do everything in our power to protect billpayers, including by reforming the regulator to make it a strong consumer champion, working to make standing charges fairer, and a proper Warm Homes Plan to save families money.”
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