MNHQ Here - Worried about your energy bills? National Energy Action will be here Wednesday 23rd Feb to answer your questions

[JuliaMumsnet]

Hello

You may have seen the recent announcement that energy bills will rise in April, and we know lots of you have been discussing your concerns on Mumsnet. On Wednesday 23rd February from 12pm to 1pm, reps from national fuel poverty charity National Energy Action will be here, live on this thread, to answer your questions about what the rises mean, why they are happening and what you can do.

You can post your questions below in advance, from now, or join the Q&A on the day.

Here's what National Energy Action say:
“There’s no doubt we are in the midst of an energy crisis. In the 40 years since National Energy Action first started we have never seen energy bills this high or so many people at risk of fuel poverty. We hear from people who have to sleep in coats and who simply cannot stay warm at home.

“Most people can’t have helped notice their energy bills rose in October when the price cap was raised. Now it’s due to rise again in April and bills are estimated to increase by over 50%. The average bill will rise from £1277 a year to £1971. Of course, not everyone is average and for some the increase will be much higher. We estimate that by April 6.5 million UK households will be in fuel poverty – that’s one in four. Our summary of the crisis is here: www.nea.org.uk/energy-crisis.

“To mitigate some of the rise the government are planning two measures. If you live in a house in council tax bands A to D you will get £150 in April. Also, all households will receive £200 off their bill from October – but there is a catch. This has to be repaid at the rate of £40 a year over the next five years.

“We’ve been very vocal, telling the government these measures are ‘woefully inadequate’, particularly for those who are in fuel poverty and vulnerable.

“We know with bills rising so high it’s a scary time, so we have Sarah, one of our energy advisers, to answer your questions. We also have Matt, head of policy who can answer questions around the response to the crisis."

Why is the standing charge for electricity increasing so much? It makes it difficult for those on a lower income with usage that is already lower than average to make much of a difference to their bills. Why aren't they increasing rates more so those who use more pay instead?

My main question is, what on earth can we do?

My question is. If they are making so much profit. Why are they hiking up the bills. Unless I’m missing something. I really don’t understand

How is it acceptable that in the uk in 2022 we are having to choose between eating and heating?

My energy provider has sent me an bill based on estimated readings. At least 25% too high. Should i just pay this as it means I'm buying my energy in advance, at lower prices?

They'll no doubt do the same over estimating on March's bill so I may build up a bit of credit.

Or do you think they'll ask us to take a reading on 31/3/2022?

Do you think people should switch to paying as the bill comes in or should they take a rough estimate each month?

Energy companies have been known to over estimate energy use.

One thing people aren't thinking of is that gas usage is generally higher in the winter months. So the new price cap will only last till October. Then when it changes in October, it may well be higher than April to October just at a time when gas usage increases massively.

What about all electric properties?

All electric properties are often forgotten in both schemes for help and advice yet are typically paying more for their heating and hot water.

Not only is electricity more expensive than gas we don't have access to the full range of tariffs as E7 or E10 is often necessary run storage heaters. These tariffs should be being encouraged by energy companies so that they can increase usage when supply is high and demand is low but instead all electric customers are forgotten, often left with just the standard variable rate and no option to fix.

Customers with storage heaters and immersion heaters are more likely to be in rented accommodation, on low incomes and have pre-pay meters all of which compound the problems.

Customers with storage heaters are already coping with much colder homes and can't make savings by "turning the thermostat down" many were struggling to avoid mould and condensation before this price rise.

What help is available? I am reluctant to invest in newer more high tech storage heaters if time of use tariffs continue to be more difficult to get hold of and more expensive, but equally don't want to rely upon expensive plug in heaters.

I have a couple of questions. How many people will be drawn into fuel poverty by next October, assuming the cap increases a further 20%, as predicted? Do you think there is enough discussion in the media about how these increases go beyond an economic crisis and also represent a public health concern for next winter when whole swathes of those who are vulnerable may be too afraid to turn on the heating? What do you think is the best way to help those most at risk?

Will there be any extra financial support for pensioners on a fixed income/state pension?

A relative will be returning to the UK at the end of the year, a single parent with a young child. If they miss out on the £200 will they still have to pay it back?

@Svara

A relative will be returning to the UK at the end of the year, a single parent with a young child. If they miss out on the £200 will they still have to pay it back?

Martin Lewis has addressed this already and the answer is yes. It isn't really a loan, every household pays it back irrespective of whether they received it.

Martin Lewis has addressed this already and the answer is yes. It isn't really a loan, every household pays it back irrespective of whether they received it.
Another boot in for struggling families then

We have pay as you go card meters for both gas and electric. We've been asking to switch to smart meters for a couple of years, but they always say in the future, not yet. We're with British Gas and EDF. Are we going to be charged more than those who pay by direct debit? If so, is there any way to force the companies to hurry up with the smart meter installation? I am disabled and registered with them as vulnerable, due to chronic pain conditions, not sure if that would help my cause or not.

DAILY STANDING CHARGE: @svara Energy companies were privatised in the 1980"s. Nearly 30 of these companies have failed. If you accept the kw charges for gas and electricity have increased what is the reason the standing charge has increased so much? Is it anything to do with a shortfall for the levy those companies should have paid to guarantee customer's advance payments for energy? If so is it legal for all consumers to fund mismanaged private companies going bankrupt?
WARM HOME DISCOUNT: This is being increased by £10 and the people eligible to claim this being widened. How will this be if help to those who are currently eligible as they will only be £10 better off?
RATES REDUCTION:Again how will this work for people who pay discounted rates, will it be deducted after their usual discounts are calculated. Some people ie students or those who don't pay rates won't benefit.

Has Sunak really addressed helping those on lower incomes, or those whose rents have increased due to having had to move? I think he's increasing benefits by around 3%, so how does that work with an increase of 54% on energy?

we moved house end last year with shell energy, had new smart meters put in 1st feb,still not working with our new smart meters shell keep sayingbe patient,its terrible not knowing what we are using, a much newer warmer house than last house we just moved from,spoke to shell today had to sent a photo of our smart readers saying not working yet,fed up

It is my understanding that the price increases are due to global gas prices shooting up, and we use gas to make electricity. However, I am in Scotland and with a company that supplies only renewable energy - so from wind - so why am I effected?

@HirplesWithHaggis

It is my understanding that the price increases are due to global gas prices shooting up, and we use gas to make electricity. However, I am in Scotland and with a company that supplies only renewable energy - so from wind - so why am I effected?

If the wind drops, do you still have power?

Yes, from renewables, according to my supplier. Gas and nuclear are not renewable. Hydro and wind are.

@bellabasset If so is it legal for all consumers to fund mismanaged private companies going bankrupt? That's what the standing charge increase is for then? Bastards

@Paranoidandroidmarvin

My question is. If they are making so much profit. Why are they hiking up the bills. Unless I’m missing something. I really don’t understand

THIS /\ /\ /\

Profits are massive, yet we are being fleeced.

@Svara - I heard one of the CEO's of either Centrica or Octopus saying the the other week that the failures of the so many energy companies would cost each customer £200. Earlier this year there was concern about the companies who weren't paying their levies or not being able to repay customers who'd overpaid. I think we need to know how the levy scheme works.

I’m trying to work out what the increased price caps will mean for our family but to be honest the published caps are meaningless as they just say e.g. ‘increase of £693 to £1971’ for gas.

What does it actually mean for cost of gas units or kWh so I can calculate what we need to be budgeting for?
I currently pay 4.2p/ kWh for gas and 21.7p/kWh for electricity.
What is the maximum these unit rates will rise to in April please?

www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/
Price caps here, based on direct debit, can vary by region.