Post Author: Marghaid Howie, Gas and Electric Reporter
Nearly a third of UK households are facing fuel poverty in the event of a predicted harsh winter, according to new research.
The independent price comparison website Energyhelpline.com forecasts that energy customers will have to stump up an average £564* to pay their heating bills from December to February if the period is colder than average.
At present, there are 6.4 million UK homes in fuel poverty – where people have to spend more than 10% of their income on their domestic fuel bills.
However, the plummeting temperatures and rising prices could push a further 1.9 million homes over the edge so that 8.3 million of the UK’s 26 million households are hit.
This means that only homes with a combined income of £30,000-a-year – just £3,000 short of the average – will be able to avoid the fuel poverty trap.
Mark Todd, director of Energyhelpline.com, said: “These figures reveal the shocking extent of how many people are going to struggle to pay their energy bills this winter.
“The nation is looking to David Cameron to take a lead on this and people will not forgive him if all that comes from the Downing Street summit is a load of hot air.”
The shock research came as a summit meeting was held between the Government and the “Big Six” energy companies to discuss ways consumers can save on their gas and electricity bills.
A combination of high domestic energy costs and harsh weather could leave the UK with a staggering national fuel bill of £14.7 billion for the December-February period compared with £11.8 billion for the same period last year.
While tariff complexity does create confusion, the fact that 75% of customers are still on standard tariffs is the main reason why so many pay high bills. It also explains why switching can save customers so much money. Many people are surprised to learn that they could chop off around £300 from their dual- fuel bill by taking just a few minutes to switch through a price comparison website to a fixed tariff.
* The calculation of £564 is based on the average UK gas and electricity bill, as calculated by OFGEM, at £1,345 a year and a 20% in typical usage of electricity and gas through December-February due to bad weather. From December-February, consumers use 30 per cent of their annual electricity usage and 40 per cent of their gas usage. The average annual gas consumption is 16,500 kWh and an average annual electricity consumption is 3,300 kWh.



