Energy bill price cap predicted to go to £3850 - 3 x what it was a year ago

[cakeorwine]

There is an AIBU here - but really it's posting for traffic

Russia is having 'maintainance issues' so has reduced the gas flow to Europe to a low level.

Gas prices have soared again.

Price cap prediction - £3850 - about 3 x what it was a year ago.

This is going to affect all of us

www.theguardian.com/money/2022/jul/27/uk-energy-bills-forecast-to-hit-3850-pounds-russia-cuts-gas-supply-further-europe-pipeline

@MidnightMeltdown
Well, you learn something every day. I didn't know that so thanks. Forewarned is forearmed. 😁

They are thinking about it and implementation is happening but why scare folk this far ahead. We have been warned since last autumn. TV newspaper articles . A bit like covid they cannot anticipate how much individual families are going to cut back prices being what they are. You'd have to be daft not to notice how much our energy bills have already gone up.

I'm not sure what any government can do about the wilfully ignorant

Only 3% of gas in the uk is from Russia. The energy companies are increasing prices and making record profits. It’s a big con.

Surely the media angle wouldn't be about forewarning people - it'd be about how successive governments have failed to prioritise energy security, despite the world's biggest energy producers being China, the US, Russia and Saudia Arabia and us having, historically, difficult relationships with 3/4 of them.

Too many of our governments have had their heads in the sand over this and food security.

But isn't it that we get a lot of our gas from Europe and other parts of Europe get a lot more of their gas from Russia so we're now competing for gas with other European countries?

Plus we've just sold a load of surplus gas that we can't store to France very cheaply and will probably need to buy some back in winter when the price is higher so in effect have just paid France ££££s to store some gas for us.

^^ this

Can't we create some storage, what is going on in the UK?

I read that the UK are sending surplus has to Germany this summer in the hope that Germany doesn't come with the begging bowl this winter, which is what they usually do.

• Gas not has

I've just discovered a wonderful (not) way to reduce my gas bill. Boiler broke down, waited two days for engineer, find out we need a new part at £700 plus 4 hrs for the engineer who can't fit it until he gets it, obviously. So cold showers in the house for the last couple of days and another few to go. I'm sure it will offset the repair bill (I wish.) I hate boiling kettles to wash dishes.

Because it's 2 months, Just over 60 days before the price cap kicks in.

People need to prepare.

I mentioned this at work today and no one seemed bothered. Or too aware. I just don't understand it. Either they can afford price increases or they just don't get what is coming. Most people in the UK are on the energy price cap - about 70%

You can take steps now to insulate your home, modify your usage and think about how you can reduce your usage.

I agree - the power firms got mocked for their suggestions - but it's what people need to do if they want to reduce their heating costs. Heat the person, not the room.

It does feel a bit like "Don't look up" at the moment

Currently we’re on 7.919p per kWh for gas

Fixed is Unit rate: 15.752p per kWh

in discussions re what to do

Fixed rates are cheaper the further North you go. 🤔

Gas is lighter than air, so there’s more the farther North you go, maybe?

They are thinking about it and implementation is happening but why scare folk this far ahead. We have been warned since last autumn. TV newspaper articles . A bit like covid they cannot anticipate how much individual families are going to cut back prices being what they are. You'd have to be daft not to notice how much our energy bills have already gone up.

I'm not sure what any government can do about the wilfully ignorant

Being warned about fuel prices escalating to record levels is not all that helpful when so many other things are going up in price at the same time, meaning it's harder to save or create a buffer.
Some sources are predicting that the average cost could be £500 in January. Now I know MN is not known for its average earners, but iirc the mean or average salary is around 30k. Take home pay from that is around £1800 ish depending on pension contributions/student loans etc, so over a quarter of income could potentially be spent on energy bills! (More than a third for those on NMW) How do you prepare for that? Not pay your rent, in order to save up?

I heard someone on the radio moot saving up for it...Usually savings are used for one off treats eg holidays or unexpected emergency things eg - car breaking down, smashed window washing, leaky roof, washing machine broken etc, but saving for an essential on-going bill is not going to work in the long run because there will be nothing spare to save (if there ever was in the first place)

E 28.08 pkw and 39.67 standing charge
G 6.97 pkw And 25.92standing charge

so
Elect is £12 plus vat
gas is £8 a month plus vat

so £20 a month so 240 a year just on standing charges plus vat

@Proudboomer
You need to review the contribution your mother gives you in light of rising prices. Ditto your son and daughter in law. Even if you have previoysly not charged them rent as they are saving.

If you spent £400 in a month last year on energy that could be £1000 in a month this year. You have 5 adults in your house, all with incomes (even if that income is a pension) and all need to contribute a realistic amount.

You describe yourself as cash poor so you can't afford to carry 3 or 4 other adults (depending on if any one else contributes).

Is your mother entitled to pension credit and/or if she is very immobile Attendence Allowance. If she is entitled to Attendence Allowance and you are on a low income you might be entitled to carers allowance. Make sure you are both claiming everything you are entitled to in order to help with the bills.

I would sit your family down (whether to include your mother or speak to her more gently separately depending on her capacity and whether she would worry) and explain the situation and that everyone will need to contribute going forward.

I agree that there is a benefit to planning ahead for what is to come.

We won't be able to get new windows and a new front door which would be great but I have a to do list:

-buy electric sheet for other beds (we have one already - we only use them to pre-warm then turn it off but it's nice to get into on a cold night)
-buy vests for my little one and white t-shirts for my eldest to wear under his school shirt (I can't imagine schools will keep usual temperatures this winter)

• wash items such as winter coats, blankets, sofa covers now while energy is cheaper and they can be hung out to dry.

-buy a fleecy dressing gown for my youngest (the rest of us have them). This can be worn over clothes if it's chilly at home. -look into fleece curtain linings

Think about our energy use. So far I have:
-Turn our thermostat down a degree or two from our usual 19
-plan our cooking e.g. hot pasta dinner one day and make enough pasta for a cold pasta salad (add salad/ cheese/ ham/dressing the second). Baking a whole bag of potatoes that can then be microwaved. Ditto batch cooking.
More (nice but) cold meals e.g. baguette/butter/cold meat/salad or quick cook like soup.

• cooking refridgerated chops/fillets etc on a sunday so they only take half hour to cook rather than a frozen joint taking ages.

-Showering every other day or jumping in my kids used bathwater. -keep nagging my eldest to fold clothes he has had on for only a few hours and not stamp them onto his floor so they need washing. -Try to wash clothes on dry days and hang stuff out even if it then needs finishing off in the dryer or hanging inside after.

Some sources are predicting that the average cost could be £500 in January

But that's for January. It does not mean £500 every month. Just that particular month.

It's still going to be high but not £6000 high

And it assumes the same usage as this January

@PuzzledObserver
I think you're taking the Mick but nevertheless, I think it's to do with piping the stuff further south costing more.
I think you know the answer and it isn't the one you replied with. 🤔😂

I saw a great tariff on the Utility Warehouse website. Gas is about 10.4p pkWh and very low standing charge. I couldn't believe it but it's only for 12 months and you have to have broadband/home phone/mobile/insurance/ blah blah or at least one of those extras to get the deal. I might phone tomorrow as I'm still in the 14 day cooling off period with recent swap. My BB doesn't end until Nov but I think the exit fee is only £30. I feel like I'm flip-flopping and I am. Serves me right for looking on other sites to see their tariffs. 😟

It's called a Loss Leader to suck you in.

I have already discussed with my mum what is going to be happening with energy cost. She is going to contribute her winter fuel payment which will be £600 this winter plus she gets disability benefit as well which she is going contribute as well. She gets quite confused and forgetful now and has a certain amount of mental decline as she thought we were still in spring last week so I don’t want to worry her to much with the realities of how we have to cut our fuel costs without her getting cold. I can’t let her get cold anyway as she has ms and very limited mobility and if she gets cold then she loses what mobility she has and I need her to be able to transfer from her wheelchair to her chair as she is now too heavy for me to lift.
my adult children also contribute but the oldest has special needs and even though he works he is only on minimum wage. He has just been reassessed for pip and we are waiting to hear if he is going to get anything which will help.
My other son and his partner contribute too plus pay the bills on the annex that they live in plus their own food but I have been keeping their contribution as low as possible as they are saving to buy this winter and should be moving out by the new year if things pan out for them so I will be losing their contribution at some stage but as they live in the annex I am going to look at putting a lodger in there once they go.
I already get carers for my mum which I have been stashing away for winter. I work and earn what I am allowed to to still be under the amount to claim carers plus I have a small pension from my late husband.
I have also been prepping so I have a good supply of storable goods like toilet roll, cleaning supplies, coffee, hot chocolate, tea, cereals, tinned goods, hygiene items, soap powder and anything we use regularly that has a good shelf life. I still have to fill the freezer with frozen goods which I will be able to do before the weather changes then the plan is just to need to buy the fresh food we will need during the winter so cut the food bill to free up that money for heating. I have already put a heavy lining on my curtains, I have plenty of warm throws and thermals already. I am overpaying now to give me a cushion plus I will get the £400 fuel allowance
am also looking into putting in a smart thermostat which I can zone to heat mums room and shut down the heating in other rooms as and when I can.

It is going to be tight and eye watering bills to pay but it is doable.