After an April snowstorm, the cost to heat a home will likely double. A charity warned against an increase in the energy price limit 

Fuel poverty charity National Energy Action (NEA) used industry data and forecasts to predict that the typical gas bill is likely to have gone up from £466-a-year in October 2020, to £944 in April 2022. 

Based on data from EnergyShop.com and Cornwall Insight.com, the prediction will show that standard tariff gas bills will double in 18 months.  

The warning comes as suppliers have been collapsing across the UK in recent weeks, after the price of gas spiked by as much as five times compared with the start of this year. 

Gas bills are likely to have gone up from £466 a year in October 2020, to £944 in April 2022, the National Energy Action has predicted.( (Stock image)

Gas bills are likely to have gone up from £466 a year in October 2020, to £944 in April 2022, the National Energy Action has predicted.( (Stock image)

At the moment the regulator caps the energy bills of more than 14 million households at £1,277 per year on average.

Consultation on possible changes ends in February. The proposed changes could be made at the beginning April, as the price cap will change.

But even before potential changes, experts at analysts Cornwall Insight predict that energy bills will rocket to £1,660 per year for price cap customers.   

Adam Scorer is the Chief Executive Officer of National Energy Action (NEA). He stated that every home should have a safe environment, however, for more than 4.5 million households, this cold reality has become progressively worse.

“The UK’s cost of living has reached its highest point in over a decade, with high household energy costs being the main driver. Those with the lowest incomes are hardest hit by rising costs for essential services.

‘Bills have increased by well over £230 since last winter and millions now face a daily heat or eat dilemma. Our estimates are that energy bills will rise again in April. This would double the heating costs for average households since last year.

‘Over the same period, those on the lowest incomes have seen their income plummet by over £1,000 per year. You can just imagine that. 

“The cost of maintaining a family’s warmth has gone up while the budget has collapsed,” says a person already struggling to make ends meet. This is despite all the useful shopping tips and smart buying.

It comes as suppliers have been collapsing across the UK in recent weeks, after the price of gas spiked. (Stock image)

The collapse comes just weeks after UK gas price spikes caused by suppliers collapsing. (Stock image)

He added: ‘Cold homes cause needless deaths and unnecessary physical and mental harm, impacting precious health services over the busiest winter months. Being born cold can permanently affect your childhood and impact your future chances of success.

Household bills could soar by £60-a-year to pay for failure of energy supplier Bulb

Household bills could rise by as much as £60 to pay for the fallout of energy supplier Bulb as UK gas prices continue to skyrocket over winter.

The company has been placed into administration and the Government vowed to set aside £1.7billion to keep Bulb’s 1.7 million customers warm over winter. 

Bulb will become the first company that uses the Special Administration Scheme. This contigency scheme was created to support large energy suppliers who are too big for failure.

Bulb will continue to provide electricity and gas for its customers under the provisions of the scheme during the administration period.

In 2013, the system was designed with the idea that the government could later pass the cost back to energy suppliers.

This will result in households paying more energy bills. 

The November Budget’s damage was not limited by the missed chance for the Chancellor. 

“If the UK Government doesn’t act quickly to help those on the lowest incomes heat and keep warm their homes, we will be walking, eyes wide open, into an inexplicable combination of physical and mental harm, problem debt and more avoidable deaths during winter.”

The NEA poll found that six in ten British adults would cut their heating usage by a significant amount or a lot if heating costs doubled.

Around 85% of UK homes (23 million) are connected to the gas network using a central heating system and a boiler. 

Today, Bill Bullen, the founder and CEO of energy supplier Utilita, told Radio 4’s Today programme that ‘we can’t duck the fact that we’re in this situation because of some pretty serious regulatory failures’.   

He added that pre-paid customers are seeing meter balances decreasing ‘really rapidly’ because of the cold snap – meaning that ‘with these higher prices it is impacting on consumers that bit more’.

Today’s Bullen stated that he could not deny the reality of our current situation due to some serious regulatory shortcomings.

“The price cap regime has caused huge price rises. I think it’s actually fair to argue that had we not had a price capping regime, we as a business would have been hedging our business much further forward than we currently do… and that would have actually saved customers a lot of money.

“The regulator has also focused on customer churn, switching suppliers and customer loss in the long-term. We now have a situation that suppliers offering really low prices have gone out of business. All parties are now having to pay the bill.