As the end of March approaches, energy companies are preparing to notify customers of impending bill increases beginning in April. The typical annual household energy bill is expected to increase from £2,500 to £3,000 as a result of the Energy Price Guarantee being eliminated. According to activists, as many as two million more households could fall into fuel poverty as a result of this price increase.
Energy UK, an industry group, has stated that firms will notify customers of the increased costs in the coming days, but this is contingent upon the government confirming the level of assistance they will receive. Households in need are encouraged to contact their supplier, who may be able to provide financial or other assistance.
Mr. Shapps has expressed his support for maintaining the current level of support and is reportedly in discussions with Chancellor Jeremy Hunt. Campaigners are also lobbying for an extension of the Energy Price Guarantee beyond the month of April, as a drop in wholesale energy prices could offset the increase and limit the economic downturn.
According to the Institute for Fiscal Studies, the government has the ability to extend the Energy Price Guarantee for a few months and ease the transition to higher costs. This sentiment has been echoed by other organisations, and Energy UK is urging the government to keep the support level at £2,500 and to announce it swiftly. The Treasury has not commented on whether additional energy bill assistance will be announced in the upcoming Budget.
Mr. Shapps stated in a speech on Wednesday that companies should pass on falling wholesale costs to consumers as quickly as possible, and that the United Kingdom should focus on providing “ever-greater” independent and less expensive energy. Since the government has not yet provided a clear indication of the level of assistance households will receive, energy suppliers are hoping for a swift resolution in order to prevent more people from falling into fuel poverty.
