Energy bills: standing charges are not standing still

Despite a 12.3% cut in April’s energy price cap, there is an important fixed element in your bill that is rising again

“Great news! Your unit rates are going down.” E.ON’s letter to customers starts with glad tidings – but, as it soon admits, there is an element of their bills that is set to go up in most parts of the country.

Despite a headline cut of 12.3% in April’s energy price cap, yet again standing charges are rising. In E.ON’s case, on its Next Flex tariff, electricity charges are due to rise from 62.205p to 67.9041p – an increase of just over 9% – while for gas, charges go up from 29.595p to 31.894p (up almost 8%).

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Citizens Advice says Sizewell C costs should not be paid with energy bill hikes

Independent advice provider calls for clarity on funding and says project may offer ‘poor value for money’

Ministers have been urged by Citizens Advice to protect consumers from a hike in household energy bills to pay for the proposed Sizewell C power station, amid international tensions over the rising costs of nuclear projects.

The UK’s largest independent advice provider has raised concerns that the project in Suffolk may offer “poor value for money” and called for greater clarity on its funding, in a letter to the Department for Energy Security and Net Zero.

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British Gas launches fixed-rate energy deal offering 12% saving on price cap

Price Promise tariff gives discount on current cap and guarantees to be at least £1 per fuel under April one

British Gas has launched a fixed-rate gas and electricity deal that offers a 12% saving over most existing price-capped tariffs, adding a new choice to the hard-to-navigate home energy market.

For the past two winters, consumers have largely been spared having to seek out the cheapest deal, because, in almost all cases, it was their supplier’s price cap-protected standard tariff.

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Bank of England governor dampens hopes of interest rate cut

Andrew Bailey says cost of living had been higher than expected in December despite ‘encouraging’ inflation news

The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.

Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was “encouraging” that inflation had remained unchanged at 4% in January but the previous month’s figure for the cost of living had been higher than predicted.

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Call to end ‘cruel’ winter rises as energy bills go up by £100 a year

Campaign groups call on regulator to abolish January bill increase, saying households are facing an ‘assault from all sides’

Midwinter energy price increases should be abolished to protect households from unaffordable bills “at the worst possible time”, according to a coalition of leading charities.

Charities and campaign groups have called on Ofgem, the energy regulator, to scrap future January bill increases as it prepares to raise the cap on energy prices by 5% from Monday.

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Inflation calculator: find out how much UK household price rises affect you

This online tool will help you discover what is contributing to your household’s cost of living increases

Inflation has been soaring in the UK, with people being hit by higher prices for everyday essentials, but cost of living pressures are finally starting to ease.

The latest inflation rate for the 12 months to November 2023 means that goods and services cost 3.9% more than they did a year ago – in most cases, surpassing any pay rises workers can expect to receive.

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Thames Water appoints Chris Weston as boss with up to £2.3m package

Former British Gas executive tasked with leading turnaround in face of debts and controversy over sewage

Thames Water has appointed a former British Gas executive as its new boss with a pay package of up to £2.3m a year and tasked with leading a crucial turnaround as it faces mounting debts and controversy over dumping sewage in Britain’s waterways.

Chris Weston replaces Sarah Bentley, who resigned with immediate effect in June amid a backlash over the firm’s poor environmental track record. Weston will take up the role on 8 January.

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One in four adults in UK to buy now, pay later for Christmas, study shows

Citizens Advice warns such credit schemes risk delivering ‘knockout blow’ to household finances

More than a quarter of adults in the UK will use buy now, pay later to help with festive spending, research suggests, with the proportion rising to more than half of parents with young children.

The survey for Citizens Advice also found 11% of respondents used such credit schemes to pay for groceries, a proportion that rose to 35% for regular BNPL users.

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Ukraine war has marked a turning point in Europe’s gas consumption, says IEA

Global energy watchdog says Russia cutting supplies has prompted efficiency upgrades and move to heat pumps

The Ukraine crisis has marked a turning point for Europe’s gas consumption, which is expected to fall again this year as homes and firms embrace efficiency upgrades and heat pumps, according to the global energy watchdog.

A report from the International Energy Agency found that the continent’s developed economies reduced their gas use by 15% in 2022 after Russia cut off flows after its invasion.

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Energy bills in Great Britain to rise by 5% from January as cap hits £1,928

Ofgem increases minimum price for energy suppliers to charge customers after rise in global gas prices

Households will begin the new year with a 5% increase in energy bills after the regulator raised the price cap to an average of £1,928 a year for the typical gas and electricity bill.

Ofgem raised the maximum price that energy suppliers can charge their customers from £1,834 a year for the typical household between October to December, after a rise in global gas market prices after the start of the Israel-Hamas war last month.

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Millions of UK households forced to unplug fridge to cope with rising bills

Families resorting to ‘desperate measures’ and struggling with ‘frightening’ level of hardship amid cost of living crisis

About 2m UK households have been forced to turn off their fridge or freezer to save money as they continue to struggle with what poverty campaigners called a “frightening” level of hardship.

Nearly half of those households said that since May they had to disconnect their fridge or freezer for the first time, a sign the cost of living crisis was still hurting low-income families, according to the Joseph Rowntree Foundation (JRF) charity.

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Energy efficiency scheme for cold homes going at a glacial pace, says Labour

Government’s Energy Company Obligation has managed to upgrade only 65,000 homes since April 2022, figures show

Labour has attacked the Conservatives over the speed of government efforts to upgrade Britain’s draughty housing stock, as analysis showed a leading household energy efficiency initiative was proceeding at what the party called a “glacial pace”.

Just 65,000 homes have been upgraded under the government’s Energy Company Obligation (Eco) scheme since it was relaunched in April last year, according to analysis of statistics released by the Department for Energy Security and Net Zero (DESNZ).

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North Sea oil and gas: what is the new licensing scheme, and will it cut bills?

Rishi Sunak signalled changes in the king’s speech that create a policy divide with Labour

The government has confirmed its plans to grant new North Sea oil and gas licences every year at the opening of parliament, deepening a political fault line between the Conservatives and Labour, and angering environmental campaigners who argue it undermines efforts to reach net zero. Here, we examine the move.

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UK recession fears grow as shoppers cut spending ‘to save for Christmas’

Drop in retail sales also because of consumer worries over high energy bills and mortgages, surveys suggest

Fears that the UK is heading for a recession this winter have intensified amid signs Britain’s hard-pressed households are cutting spending as they save for Christmas and higher fuel bills.

Two monthly snapshots of retail activity found shops and online outlets struggling because of consumer budgets being squeezed by dearer mortgages and the UK’s lingering cost of living crisis.

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UK infrastructure needs much more investment, say government advisers

National Infrastructure Commission says public transport, home heating and water networks all in need of renewal

The UK’s infrastructure needs a big cash injection, with public transport, home heating and water networks all in dire need of renewal, independent government advisers have said.

The investments, of about £30bn a year from the taxpayer and £40bn to £50bn a year from the private sector, would result in savings to the average household of at least £1,000 a year, higher economic productivity, and a better quality of life in the future, the National Infrastructure Commission said.

Substantial investment in public transport for England’s biggest cities must be accompanied by restrictions on car access to alleviate congestion.

Hydrogen must not be used for home heating, despite government enthusiasm for the technology. Hydrogen should be exploited for use in heavy industry.

People on lower incomes should have heat pumps installed free, while the other two-thirds of households should receive subsidies of £7,000 each for their installation. Upgrading homes with high levels of insulation is not needed before installing heat pumps.

Water meters should be compulsory for households and businesses.

No new waste incinerators should be built, and recycling rates need to improve.

The decision to cancel the northern leg of HS2 was “deeply disappointing” and “leaves a major gap in the UK’s rail strategy”. Armitt said it would result in an “overload” of the west coast mainline, or encourage more people and freight on to the roads.

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Water firms in England and Wales ordered to cut £114m from bills

Fewer than half of companies meeting their targets on leaks, says the regulator, Ofwat

Water companies in England and Wales have been ordered to return £114m to customers through lower bills next year because progress on leakage and sewage spills has been “too slow”.

In its annual water company performance report, the regulator, Ofwat, said the majority of water and wastewater companies were underperforming on targets set for 2020-25 to deliver better outcomes, for customers and the environment.

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UK ministers scrap energy efficiency taskforce after six months

Group tasked with overseeing initiative to insulate homes and upgrade boilers was only set up in March

The government’s energy efficiency taskforce, charged with reducing the UK’s energy use by 15% by 2030, has been scrapped months after it was established.

The group, which was overseeing an initiative to insulate homes and upgrade boilers, was announced by the chancellor, Jeremy Hunt, in his autumn statement last year as part of plans to boost investment in energy efficiency.

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New £1bn government upgrade to plug Great Britain’s draughtiest homes

Households could save £400 a year on energy bills via means-tested insulation scheme

Households could save up to £400 a year on energy bills under a new means-tested scheme to insulate more than 300,000 of Great Britain’s draughtiest homes.

The government is spending £1bn on grants for homes that have low energy efficiency ratings and are in lower council tax bands.

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Third of working tenants in England ‘lack savings to pay rent if they lose job’

Half have maximum of a month’s worth of rent put by as costs rise, Shelter survey finds

A third of working tenants in England do not have enough savings to pay rent if they lose their job, putting them at risk of losing their home, according to research by the housing charity Shelter.

Record rents and the rising cost of other household bills are putting tenants’ finances under pressure and mean many are unable to set money aside for emergencies.

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A social tariff could bring a warm glow to UK energy policy

A lower price cap will still mean unaffordable bills for many. Yet a fairer alternative has been quietly dropped

Nearly a decade ago, former Labour leader Ed Miliband sowed the seeds of the energy price cap, vowing to protect households from unfair tariffs by freezing their energy bills. But even though a cap has been in place since 2018, bills today can be far from affordable, even when they are fair.

On Friday, industry regulator Ofgem will set its new limit on how much suppliers can charge per unit of gas and electricity. Analysts at Cornwall Insight expect it to lower the energy price cap from £2,074 a year for the typical household to £1,823, which would be its lowest level since Russia’s invasion of Ukraine.

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