There is no doubt that the price of living has been rising. Groceries are costing more; national insurance prices are rising, and accommodation costs are through the roof. And yet, there has been another addition to the rising costs hitting the headlines recently: the energy bill hike. People all around the UK are growing more concerned about what this will mean for them.
What is Happening?
In short, the energy price cap has increased. The energy price cap refers to the maximum amount that energy suppliers can charge customers for gas and electricity over a six-month period. This increase was announced at the start of February but prices have been slowly increasing over the past year.
Ofgem, the regulator, shared that this will affect consumers in England, Scotland, and Wales. Due to the increase in wholesale gas prices around the world, the price for the use of heating is going to rise. Unfortunately, companies are having consumers pay for this increase themselves, which means that bills for gas and electricity are also on the rise. Additionally, the energy price cap impacts prepayment meters, as well as consumers with standing charges, which has led to widespread concern.
Why does this matter?
This increase is going to affect an estimated 22 million households according to Ofgem, and the cost of living is expected to grow by more than 50%. On average, this will equate to hundreds of pounds of additional costs for consumers.
Students need to be aware of the higher costs when considering their housing situations. In St Andrews in particular, where rent is already high, this increase may render some properties completely inaccessible. To try to reduce the magnitude of energy on your costs of living, make sure to look at a property’s efficiency ratings. Furthermore, feel to reach out to landlords as well as Home Energy Scotland for support.
What can you do?
The impact of the price cap is obviously going to be detrimental for everyone around the country. You can learn more and see if it will impact you here. If you are affected by the price hike, there are ways to mitigate its effects. Firstly, you can apply to various funds that would provide monetary support to help pay for energy bills. One such fund, Home Heating Support Fund, can be found here. For this fund, individuals can receive up to three hundred and fifty pounds. There are, and will be, more funds available for continued support. Students should also consider reaching out to their energy suppliers who can provide individual solutions like payment plans should the increase prove to be too inaccessible. Citizens Advice also has resources available to help consumers.