Rising energy costs are pushing families in Greater Manchester to the very edge of disaster.
The energy cap is set to rise by a huge 54 per cent on April 1, plunging millions into fuel poverty.
The increase means the average electricity and gas bills for a typical household will go up by £693 a year.
However, energy use varies across the country, meaning if your consumption is similar to the local average you could be facing bigger bills than those in other parts of the country.
You'll see a larger increase if you pay by prepayment meter, cash, cheque, or quarterly direct debit, rather than monthly direct debits, due to the costs of those payment types to the energy companies.
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Data based on local average domestic usage according to Department for Business, Energy & Industrial Strategy, and Ofgem’s price cap figures for customers paying by direct debit shows people in Trafford could be paying more for their energy, followed by Stockport and Bury.
Figures for Greater Manchester
Local Authority // Median gas consumption – 2020 (kWh) // Median electricity consumption – 2020 (kWh) // Gas and Electric bill – Summer 21 // Gas and Electric bill – Winter 21 // Gas and Electric bill – Summer 22 // change from Summer 21 to Summer 22
Just as local usage varies, so does the price cap, with people in some areas facing a higher cap based on the cost of transporting energy to them.
Those in the South West, South Wales, and North Wales and Merseyside pay more than the British average, while it’s lower for those in the East Midlands, North West, and North East and Yorkshire and the Humber.
Regulator Ofgem sets the cap twice a year for summer (between April and September), and winter (between October and March).
The cap is based on the costs energy suppliers face. Primarily, this is the wholesale cost of gas and electricity.
The big increase coming in April is driven by a rise of more than 50 per cent in energy costs over the last six months with gas prices hitting a record high as the world emerges from lockdown.
The cap also includes the cost of building and maintaining pipes and wires, the administration costs for billing, the cost of supporting government schemes, such as reducing emissions, VAT, and some profit, as well as some headroom for unexpected costs.
The difference in the cost for different payment types is based on the costs of those payment types to the energy companies.
