Energy Prices

I live by myself in a flat and in the past 12 months I've used 3,121 kwh's electricity and 6,684 kwh's of gas.  12 months ago with the tariff I had with Pure Planet (which has now ceased to trade) the total price for this energy would have been £507.27 for the electricity and £275.40 for the gas, equalling a total of £782.67.  This price continued until August 2021, less than 6 months ago. I should add that Pure Planet were offering their energy too cheap, hence the reason why they and many other energy companies went under.

I was put with EDF.  Their energy cost for that specific amount of energy I used is £738.66 for the electricity and £394.87 for the gas, equalling a total of £1,133.54.  £1,133.54 compared to £782.67, an increase of 45%.  

That's bad, very bad indeed.  But soon, it's going to get much worse.  In April it is anticipated that energy bills will increase by yet a further 50%.  This will be 50% of the current tariff of £1,133.54 (not of the £782.67).  50% of £1,133.54 is £566.77.  Hence, for my use of energy for a year the new cost will be £1,133.54 plus £566.77 equals £1,700.31

So, compared to a year ago my energy costs will be increasing from £782.67 to £1,700.31.  That's an increase of £917.64 or 217%!  In other words, in the space of a year, energy prices for me will have more than doubled*.

* For those shopping for the cheapest energy deal a year ago like myself, the price of energy will more than double.  However, if one didn't shop for the cheapest deal, then the price increase will most probably be less than double.  It's worth asking ourselves here, though, who would tend to shop for the cheapest energy deals?  Surely poorer people would be somewhat more likely to do so since money is very tight and they will shop for the very cheapest products and services.  Well-off people, on the other hand, may find the whole process of changing energy provider a bit of a hassle. 

The upshot of all this then is that many, if not most, of the very poorest people will be paying more than double for their energy as compared to a year ago.  This sum will likely be in the region of them having to find an extra £1,000 or so.  That is calamitous for poor people.  The Government must provide substantial help.  Not a mere £140 by extending the warm home discount (as has been mooted), that only makes a dent in the £1000. 

3/2/22  UPDATE

From here:

The new price cap, set by energy regulator Ofgem, will come into force in April, adding up to a rise of around £700 for an average household.

People paying default tariffs by direct debit will see an increase of £693 from £1,277 to £1,971 per year, while prepayment customers will see an increase of £708 from £1,309 to £2,017.

The cap is set for six months and could rise further afterwards.

At a glance, this means:

A 54% rise from the current price cap of £1,277.

Government loans will offset £200 of the annual increase, plus a £150 council tax rebate.

New rate comes in on April 1.

The £200 discount on energy will be paid back over five years through our bills.

The net effect is that bills rise by less in the next year, but fall by less in the years to come.

The plan all depends on the market price of energy falling.

Here's what I just said on facebook (or meta as it's now called).

So, a 54% increase in the price cap. My energy usage did amount to £782.67 a year ago for 3,121 kwh's electricity and 6,684 kwh's of gas. This is now £1,133.54 for the same energy. In April this will increase by 54.2%. So £1,748.21. A total increase since a year ago of £1,748.21 - £782.67 = £965.54 per annum.

And we're not even taking into consideration the apparently 20% increase in food prices (at least from my own case), the increase in national insurance, the £20 UC uplift being scrapped and many other strains on peoples wallets.

So how is the chancellor helping? We're being give a £150 reduction in council tax, and being given a loan of £200 to help pay our energy bills which will come in October and which we will pay back over the next few years.

£150, or £350 taking into account the loan. But if one opted for the cheapest energy deals a year ago, energy *alone* has increased by roughly £1,000.

This is utterly calamitous for poor people.