In a bid to address the imminent 5% hike in energy bills starting today, campaigners are fervently advocating for the implementation of a cost-effective social tariff to alleviate the financial burden on struggling households.
Escalating Costs: £94 Increase, Totaling £1,928 Annually
The surge in gas and electricity prices translates to an alarming £94 increment, pushing the average annual household energy bill to £1,928. This substantial rise is raising concerns among consumer and anti-poverty groups, prompting a call for comprehensive, long-term reform to aid low-income households.
Unmet Urgency: Ofgem’s Prior Call for Social Tariff Examination
A year ago, the industry regulator Ofgem emphasized the ‘urgent’ need to scrutinize the introduction of a tariff designed to ‘limit the impact of extremely high prices.’ However, no tangible progress has been made in delivering this crucial measure.
Voices of Concern: Watchdogs and Industry Analysts Weigh In
Consumer watchdog Which? representative Emily Seymour stressed the imperative nature of a targeted social tariff, stating, “In the long term, a properly targeted social tariff is desperately needed to ensure the most financially vulnerable can heat their homes.” Similarly, Simon Francis of the End Fuel Poverty Coalition expressed concern over the confluence of rising energy bills, winter challenges, and the ongoing cost of living crisis impacting struggling households.
Unpredictable Trends: Warning from Industry Analysts
While industry analyst Cornwall Insight predicts potential falls in energy bills throughout 2024, caution is urged. Dr. Craig Lowrey, Principal Consultant at Cornwall Insight, warned about the historical volatility of the wholesale energy market, emphasizing the susceptibility to unexpected global events leading to spikes in energy prices and subsequently affecting household bills.
As households brace for the winter pinch amid increasing energy costs, the pressing need for a targeted social tariff remains a focal point for campaigners advocating for long-term solutions to mitigate financial hardships.
Source：dailymail.co.uk
