Driffield News

Wolds residents braced for a huge increase in energy bills

People in Driffield and the Wolds are set to see major changes to their energy bills from April, with many to pay an extra £693 per year, a rise of 54 per cent.

The news was confirmed by Ofgem and the regulator’s new price limit means a large number of households will pay £1,971 per year for gas and electricity.

Anyone who is one of the 4.5 million people on pre-payment meters will see a bigger jump – an increase of £708 annually.

To offset the rising bills, chancellor Rishi Sunak outlined plans to offer Council Tax rebates, along with further financial assistance.

The majority of households will be provided with £350 to help them with the higher tariffs.

A discount of £200 will be given on energy bills for households from October. This will be paid back over the next five years at £40 per year, starting in April 2023.

Experts have suggested that bills are likely to rise again from October.

Households in council tax bands A to D will receive a discount of £150 from April.

In total, the £200 rebates will cost the Treasury £5.6 billion, whilst the council tax discount will cost the government £3.6 billion in 2022/23.

Also last Thursday, the Bank of England increased interest rates from 0.25 per cent to 0.5 per cent, which means that lending money will be more expensive, but the rise is designed to help with rising prices.

“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet and Ofgem will ensure energy companies support their customers in any way they can,” said Jonathan Brearley, chief executive of Ofgem.

“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.

“Ofgem is working to stabilise the market and over the longer term to diversify our sources of energy which will help protect customers from similar price shocks in the future.”

Food bills are also rising and an increase in National Insurance means that tax bills are set to be higher from April.

The energy cap is announced every six months and sets the prices that suppliers can charge for each unit of energy, as well as the standing charge.

The values are then turned into the expected annual bill for a household that uses the typical amount of gas and electricity.

There is not a limit on how much companies can charge.

Those on a standard variable tariff, whose fixed deal has concluded, or is about to, and anyone affected when their old supplier went bust, will be affected by the new higher cap.

Typical bills will rise by 54 per cent and, when the next cap in announced in October, it’s believed hundreds of pounds could be added to the typical bill ahead of winter.

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