The National Pensioners’ Convention roundly condemns the latest 6.4 per cent increase in the price cap on fuel bills announced by energy industry regulator Ofgem.
With millions of older and vulnerable people already struggling to pay for basic utilities, we call on the government regulator to do its job and stand up for consumers, particularly at a time when energy firms are raking in billions in profits.
Ofgem’s higher than expected rise in the price providers can legally charge customers will see the average household energy bill rise by £111 a year to give an annual total of £1,849.
The regulator says rising wholesale costs of oil and gas, as well as inflation are behind the latest hike, the third consecutive increase in the quarterly cap.
Jan Shortt, general secretary of the NPC said: “Ofgem and the government are clearly not listening to the millions who simply cannot afford these continual hikes in the price of basic essentials like energy.
“There is no way that the triple lock rise on state pensions this April will replace the loss of the winter payment and cover the cumulative increases in bills for everything from energy to food.
“This round robin of increases will see many more older and vulnerable people switching off their energy to save money. Whilst we might be hoping for temperatures to start to rise in April, there is no guarantee, and those with high level health needs will be worst hit.
“In our view Ofgem has yet again failed to protect UK consumers. The NPC will be submitting our views to the government consultation on the future of the regulator, because there is no doubt that it requires some fundamental change.”
Research by Citizens Advice suggests 6.7m in England, Wales and Scotland are now in debt to their energy supplier, with official figures showing nearly £4bn is owed. Fuel poverty campaigners 38 Degrees found that half of those questioned in a new poll believe Ofgem is failing to protect consumers.
Almost 70,000 members of the public have signed a petition in collaboration with NPC, Warm This Winter and Fuel Poverty Action.
The petition calls for the Government to:
●Make Ofgem a true consumer champion, holding suppliers to account for bad practice, ending the revolving door of energy bosses making decisions, and not making consumers foot the bill for firms going bust.
●Reduce bills to affordable levels that meet people’s needs, removing protections that guarantee profits and bonuses for energy companies.
●Make sure everyone automatically gets the best energy deal and customer service they need and protects vulnerable people.
The impact of Ofgem changes:
●Gas prices will be capped at an average of 6.99p per kilowatt hour (kWh), and electricity at 27.03p per kWh, up from 6.34p and 24.86p respectively. A typical household uses 2,700 kWh of electricity a year, and 11,500 kWh of gas.
●Households on pre-payment meters are paying slightly less than those on direct debit, with a typical bill of £1,803.
●Those who pay their bills every three months by cash or cheque are paying more, with a typical bill of £1,969.
●Standing charges have dropped to 53.8p a day for electricity, but risen to 32.67p a day for gas, compared with 60.97p and 31.65p respectively.
●The regulator has extended the Debt Allowance Scheme, a charge to cover the cost of the debt support.
It’s totally obscene for this government to be picking the pockets of pensioners while people with the broadest shoulders could be helping solve this shocking situation in 2025.
Rodney Sadd
Crowland
