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- Energy bills will rise in October, but many cannot afford the increase
One in four people could be forced to turn off their heating and hot water when energy bills rise this autumn, according to charity Citizens Advice.
The average gas and electricity bill is set to rise by 9 per cent in October, according to analysts Cornwall Insight.
This would reduce the typical annual energy bill of Between £1,568 and £1,714 a year, for a deal capped by Ofgem’s price cap.
Citizens Advice said one in four people (25 per cent) are so worried about rising energy costs that they say they will be forced to turn off their heating and hot water this winter.
Warming: Energy bills will rise again, further straining household finances
This figure rises to 31 percent for households with children and 39 percent for low-income bill payers.
Citizens Advice chief executive Clare Moriarty said: “Energy prices may have come down since the peak of the crisis, but with many already in the red and previous support packages being scrapped, there is still no light at the end of the tunnel for those in desperate need.”
More than a million pensioners will also have to pay more for energy this winter as the Government scraps the Winter Fuel Payment, which was as high as £300.
These payments, however, will be restricted to those receiving benefits such as the Pension Credit.
The charity warns that if the Government fails to act, households will continue to face drastic cuts in heating their homes.
Citizens Advice said it is still helping a record number of people with energy debt despite gas and electricity prices being lower than last year.
Nearly 5 million people (7% of households) are in debt with their energy supplier. This figure rises to over 14% for households with children under 18.
Citizens Advice has called on the Government to reform the Warm Homes Discount to ensure it reaches more people and better reflects their energy needs.
The Warm Homes Discount is a £150 energy bill credit awarded to eligible households, such as those receiving means-tested benefits.
Louise Steel, a social worker at Citizens Advice, said: “When people struggle to pay their energy bills, everything else suffers. We’ve helped people who have sold all their non-essential appliances to help pay their rising bills. And we also have people who stay in our waiting room longer than necessary, just to keep warm and watch TV.
Will my energy bill increase by 9%?
Not necessarily. That figure is an estimate by Cornwall Insight and the energy regulator Ofgem will announce the actual number on Friday 23 August.
Any 9 percent increase would also be an average, and how much your bill would change would depend on how much energy you use.
Furthermore, the change only applies to households with energy bills regulated by Ofgem’s price cap.
Energy regulator Ofgem’s price cap limits the price that can be charged to households on variable-rate gas and electricity contracts.
Ofgem limits unit rates (the price you pay for the energy you use) and fixed charges (daily rates you pay regardless of the amount of energy you use).
Ofgem’s price cap is set four times a year.
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