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As chilly winter weather sets in, consumers may be worrying about how they will pay increasing energy bills, especially when many have been out of work during the coronavirus pandemic.
But there is some good news: The U.K. government and others have policies and programs in place to help.
Consumers’ Energy Bills Capped
The government has announced it’s keeping the cap on energy bills into the new year for about 15 million homes in the U.K., The Guardian reported.
The program was put in place at the beginning of 2019 in an effort to stop deceptive energy deals, and could have ended sooner.
But, officials and energy regulator Ofgem extended the time limit for the cap after households were shown to save £1 billion last year — that’s between £75 and £100 annually for an average home that uses the standard dual fuel tariff, according to The Guardian.
In August, Ofgem announced the energy cap for winter would fall by £84 per year, on average, for 11 million households and by £94 per year for another 4 million.
The cap initially was proposed in 2013 as a means of stopping energy suppliers from profiteering at consumer expense.
Energy suppliers lobbied against similar proposals and apparently have called for the cap to end as soon as the end of the year, the soonest point the legislation allows.
However, The Guardian reported, the cap could stick around until the end of 2023 if the energy market becomes more competitive and fairer to consumers.
Business and Energy Secretary Alok Sharma told The Guardian the cap ensured customers didn’t overpay, “which is why we are keeping it in place for at least another year.”
“Switching energy suppliers to find the best value deals is still the best way to save on bills, but this government is determined to make sure all customers are treated fairly and get the protection they deserve,” Sharma said.
Help with Bills Amid The Pandemic
Lower-income households will also get some help directly from Ofgem.
From 15 Dec., energy suppliers are required to offer emergency credit or “realistic” plans for paying down debt to struggling customers on pre-pay meters, The Guardian reported.
Ofgem is offering the plan as a way to help households keep the lights and heat on as the coronavirus pandemic continues.
Ofgem reportedly expressed concerns about customers being able to pay their bills or top up their meters if they’re not able to afford the upfront cost or are self-isolating because of COVID-19.
Initially, these measures were part of an agreement between Ofgem, the energy industry and the government as lockdowns began in March.
Beginning in mid-December, they will no longer be voluntary under Ofgem licensing conditions.
Ofgem retail director Philippa Pickford told The Guardian these extra steps will give struggling households “some breathing space this winter.”
She urged anyone having a hard time paying their bills to contact their energy supplier right away.
Working from Home Could Cause Bills To Increase
More consumers — even those who are working — may be affected by high winter energy bills this year.
Some areas are back under lockdown, meaning many people continue to work from home.
Millions of work-from-home employees in average households could see the bill climb by £107 this winter — collectively, that’s nearly £2 billion, according to a Guardian report.
Half of the U.K. workforce is expected to be working from home over the next few months of the pandemic, with radiators and boilers running throughout the day, The Guardian said.
Government regulations only guarantee compensation of less than one-third of work-from-home employees’ expected energy bill increase in the form of tax relief — between £1.20 to £2.40 a week, according to The Guardian.
Unions and advocates against fuel poverty have grown concerned over rising costs associated with working from home. They fear workers’ debts could continue to climb as they’re also required to set up home workstations.
“Our worry is that the next phase of home working will be defined by some employers outsourcing the costs to their staff,” trade union Prospect general secretary Mike Clancy told The Guardian.
He said work-from-home employees could face “hidden overtime” and pressure to work outside their normal hours, as well as all of the other issues that arise, such as higher energy bills and mental-health issues that arise from being isolated.
Will you benefit from the energy bill cap and other measures amid the coronavirus pandemic? Let us know in the comments below.
Check back daily for the most recent U.K. class action lawsuit and consumer protection news.
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