Households are facing an 80% rise in energy costs in October, and the most expensive neighbourhoods for gas and electricity in Nottinghamshire have been revealed. Ofgem announced on Friday, August 26 the price cap rise which will come into effect in October, following a 54% jump in April, and a 12% rise last October.
Charities are warning that 8.9million households in the UK could be in fuel poverty this winter, with many families no longer choosing between heating and eating, as they are unable to afford both. The average bill for a customer paying with direct debit will be £3,549 a year, which has risen from £1,277 in October 2021.
However energy use varies across the country, meaning if your gas and electricity consumption is similar to the local average, you could be facing bigger bills than those in other parts of the country. Based on local average domestic usage according to the Department for Business, Energy & Industrial Strategy and Ofgem's price cap figures, Tuxford, Markham & Rampton and Bassetlaw are the most expensive neighbourhoods for energy bills.
Read More: Boris Johnson says 'future will be golden' after ‘tough months ahead’ for resilient Britain
The average household in these areas had a median gas consumption of 19,676 kWh in 2020 and a median electricity consumption of 4,502kWh in 2020. The average winter gas and electric bill for Winter 2021 was £1,881 and £2,939 for Summer 2022.
For October to December 2022 the bills are expected to be £5,447, which is a increase of £2,507 from the summer. The second most expensive neighbourhoods were Keyworth North, Tollerton & Willoughby and Rushcliffe, with expected bills for October to December 2022 of £5,081.
Followed by Lowdham, Bleasby & Gunthorpe and Newark and Sherwood, with expected bills of £4,938 for the same period. Thomas Lawson, chief executive of national poverty charity Turn2us, said: “Today’s meteoric rise in the energy cap will cripple those of us in the UK already struggling to stay afloat.
"This is no longer a choice between heating and eating, but not being able to afford either. This is as big an emergency as the impact of Covid and needs a similarly confident government response.”
He asked that the government introduce a cap on energy costs that means people can heat their homes and turn on the lights this winter, and asked for Universal Credit and legacy benefits to be increased by a minimum of £25 a week.
Residents in Nottingham used an average gas consumption of 11,633 kWh and 2,713 kWh of electricity in 2020. The average gas and electric Winter 2021 bill cost £1,197, followed by £1,859 in Summer 2022. The expected average bill for October to December 2022 is £3,357, which is an increase of £1,497 from the summer.
Residents in Ashfield are expected to pay an average of £3,610 this Winter, with Gedling residents paying £3,822, Mansfield residents paying £3,621, and Broxtowe residents paying £3,664. All of which are an increase of at least £1,600 from the Summer cost.
Fuel poverty charity National Energy Action (NEA) estimates the rise will increase the number of UK households in fuel poverty from 4.5 million last October to 8.9 million this October. That’s even when the government’s support package is taken into account.
Adam Scorer, National Energy Action (NEA) chief executive, said: "The scale of harm caused by these price rises needs to sink in. A warm home this winter will be a pipedream for millions as they are priced-out of a decent and healthy quality of life.
“The government needs to immediately upgrade the household support package it first announced back in May. Households need money in their pockets to weather this storm or we are going to see millions in dangerously cold homes, suffering in misery with unimaginable debt and ill health.”
Jonathan Brearley, CEO of Ofgem, said: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make. I talk to customers regularly and I know that today’s news will be very worrying for many.
“The Government support package is delivering help right now, but it’s clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year.”
It has been forecasted by analysts at Cornwall Insight that prices will rise from £3,549 in October to £5,387 in January, a 52% increase, and then to £6,616 in April, up another 23%. This would take the average monthly bill from £296 in October to £449 in January and £551 in April.
Chancellor Nadhim Zahawi said the government is “working flat out” to develop a new package of support for consumers. He said: “This will mean the incoming Prime Minister can hit the ground running and deliver support to those who need it most, as soon as possible.”
Read Next:
