We are used to bills increasing, it’s part of our financial lives. However, we are now embarking upon an unprecedented time, where energy costs are soaring to levels we never thought possible.

The global wholesale cost of gas has increased, leaving the energy market in turmoil. In the last few months alone there has been approx. 25 energy firms who have ceased to trade, with millions of customers needing to be transferred to other suppliers as a result. Sadly, this has also meant that those employed by the defunct energy companies have been made redundant.

Due to this wholesale gas increase, the price cap, there to prevent gas & electricity suppliers from going above a set market capped price, is increasing. In April 2022, the energy price cap is rising by an astonishing 54%, as confirmed by the regulator Ofgem in February 2022. Sadly, that doesn’t appear to be the end of the increases, with another planned increase in October 2022, for which the level of increase has not been confirmed.

It was previously said that a household was in fuel poverty if more than 10% of income was spent on fuel. In 2018, it was estimated that there was 619,000 in Scotland in fuel poverty (25% of all households) – source eas.org.uk. It is estimated that the planned increase in the energy price cap in April 2022 will see an additional 210,000 fuel poor households in Scotland – source, Scot Govt. In reality, this figure is likely to be much higher as incomes are squeezed through a National Insurance increase, as well as the cost of food increasing too.  

As we enter this unprecedented energy crisis, our Energy Awareness webinar is a 30-minute session providing a whistle-stop tour of what’s happened to cause the crisis, where we are, where we are likely to be in the coming months as well as discussion around what help is being made available to households to get through this time.