People who rely on electricity to heat their homes will be landed with an even bigger spike than that seen in the gas market
Up to 2.6million of Britain’s poorest households could be hit with the biggest
heating bill hikes this winter - because they use electricity.
Four energy giants have left customers reeling by announcing gas price rises of more than 9% on average each.
People who rely on electricity to heat their homes will be landed with an even bigger spike because suppliers have sneakily whacked up their off-peak rates.
Experts say these night-time charges have rocketed by as much as 35% in the past year, hammering those people who can afford it least.
Many households who do not get mains gas rely on electricity for heating instead.
They include an estimated 2.6million homes with electric storage heaters, many in tower blocks and social housing.
The electricity they use is charged at two rates - on peak, during the day, and off peak at night - with many people on the Economy 7 tariff.
Storage heaters are designed to use electricity at night, when it is cheaper, and release the heat during the day.
But while off peak rates are still less than at peak times, the surge in costs has driven up heating costs for these households, many of them hard-up families and pensioners.
Energy giant SSE will be the first to impose a winter price rise when it jacks up bills by an average of 8.2% this Friday.
But customers using electricity for heating risk being landed with an even bigger jump.
That is because, while day time rates for Economy 7 customers will rise by 8%, the price at night will rocket by 12%.
Rival supplier npower is set to hammer hard-up electricity customers in the same way.
The German-owned giant has announced plans to increase average electricity prices by 9.3% from the beginning of December.
But Economy 7 customers will see their off peak rate jump by 10% - on top of a 15% leap last year.
Derek Lickorish, chair of the Fuel Poverty Advisory Group, claimed SSE had increased its off peak prices by 35.6% in just over a year.
He added those facing a surge in off peak prices are being hit with a double whammy because certain green taxes are added to electricity bills, and not gas, yet these customers do not get the full benefit of the schemes.
He said: “In general we’re talking about some of the poorest households who are coming off worse through no fault of their own.
“It is something I have written to the Secretary of State about because these off peak users are being clobbered.”
Energy regulator Ofgem said: “We recognise this is an important segment of the market.
“There are a variety of Economy 7 tariffs in the market. We advise customers to look at their day/night time rate and compare prices based on their own usage.”
Research out earlier this year showed households with electric heating were paying the highest price for government green policies.
The report, from the watchdog Consumer Futures, warned these customers could see their annual bill soar by a massive £282 by 2020.
Energy giants will be in the spotlight again this week when two of the country’s biggest suppliers announce half year trading figures.
SSE reports numbers for the past six months on Wednesday although the country’s second biggest energy firm recently warned its retail business would make a loss.
However, that is before this week’s inflation-shattering bill increase which will boost its coffers going forward.
But all eyes will be in energy heavyweight Centrica which announces half year results on Thursday.
The firm is expected to make a full year profits of nearly £3billion, including more than £600m in its British Gas arm.
British Gas delivered a blow to 7.8million households after confirming 10.4% rise in electricity prices and 8.4% hike for gas tariffs
The energy giant said average customer dual-fuel bills will rise by £123 to £1,444 from November 23.
Suppliers will also be under the spotlight at an industry summit, organised by trade body Energy UK, tomorrow (Tuesday).
SSE said: “SSE has long campaigned against the unfair penalisation of electricity-only customers due to the disproportionate way in which the cost of government schemes are levied on electricity usage.
“Because these costs are charged per unit consumed, for off-peak users they represent a proportionately higher part of the unit rate, which means that when they go up they have a bigger impact on off-peak rates.
“This often means that customers who can least afford it end up paying the most towards government schemes.”
Npower pointed out last year’s 15% jump in off peak rates was to pass through specific cost increases.
Mr Lickorish warns the government faces a legal challenge over its failure to tackle fuel poverty.
Ministers have a target to eradicate the problem by 2016 but more than six million households are believed to be trapped in the plight.
Mr Lickorish, a government advisor, said: “It is immoral that so many of the poorest pensioners, families and disabled people may put their health at risk because they are afraid of the cost of turning their heating on this winter.”
Mirror
Four energy giants have left customers reeling by announcing gas price rises of more than 9% on average each.
People who rely on electricity to heat their homes will be landed with an even bigger spike because suppliers have sneakily whacked up their off-peak rates.
Experts say these night-time charges have rocketed by as much as 35% in the past year, hammering those people who can afford it least.
Many households who do not get mains gas rely on electricity for heating instead.
They include an estimated 2.6million homes with electric storage heaters, many in tower blocks and social housing.
The electricity they use is charged at two rates - on peak, during the day, and off peak at night - with many people on the Economy 7 tariff.
Storage heaters are designed to use electricity at night, when it is cheaper, and release the heat during the day.
But while off peak rates are still less than at peak times, the surge in costs has driven up heating costs for these households, many of them hard-up families and pensioners.
Energy giant SSE will be the first to impose a winter price rise when it jacks up bills by an average of 8.2% this Friday.
But customers using electricity for heating risk being landed with an even bigger jump.
That is because, while day time rates for Economy 7 customers will rise by 8%, the price at night will rocket by 12%.
Rival supplier npower is set to hammer hard-up electricity customers in the same way.
The German-owned giant has announced plans to increase average electricity prices by 9.3% from the beginning of December.
But Economy 7 customers will see their off peak rate jump by 10% - on top of a 15% leap last year.
Derek Lickorish, chair of the Fuel Poverty Advisory Group, claimed SSE had increased its off peak prices by 35.6% in just over a year.
He added those facing a surge in off peak prices are being hit with a double whammy because certain green taxes are added to electricity bills, and not gas, yet these customers do not get the full benefit of the schemes.
He said: “In general we’re talking about some of the poorest households who are coming off worse through no fault of their own.
“It is something I have written to the Secretary of State about because these off peak users are being clobbered.”
Energy regulator Ofgem said: “We recognise this is an important segment of the market.
“There are a variety of Economy 7 tariffs in the market. We advise customers to look at their day/night time rate and compare prices based on their own usage.”
Research out earlier this year showed households with electric heating were paying the highest price for government green policies.
The report, from the watchdog Consumer Futures, warned these customers could see their annual bill soar by a massive £282 by 2020.
Energy giants will be in the spotlight again this week when two of the country’s biggest suppliers announce half year trading figures.
SSE reports numbers for the past six months on Wednesday although the country’s second biggest energy firm recently warned its retail business would make a loss.
However, that is before this week’s inflation-shattering bill increase which will boost its coffers going forward.
But all eyes will be in energy heavyweight Centrica which announces half year results on Thursday.
The firm is expected to make a full year profits of nearly £3billion, including more than £600m in its British Gas arm.
British Gas delivered a blow to 7.8million households after confirming 10.4% rise in electricity prices and 8.4% hike for gas tariffs
The energy giant said average customer dual-fuel bills will rise by £123 to £1,444 from November 23.
Suppliers will also be under the spotlight at an industry summit, organised by trade body Energy UK, tomorrow (Tuesday).
SSE said: “SSE has long campaigned against the unfair penalisation of electricity-only customers due to the disproportionate way in which the cost of government schemes are levied on electricity usage.
“Because these costs are charged per unit consumed, for off-peak users they represent a proportionately higher part of the unit rate, which means that when they go up they have a bigger impact on off-peak rates.
“This often means that customers who can least afford it end up paying the most towards government schemes.”
Npower pointed out last year’s 15% jump in off peak rates was to pass through specific cost increases.
Mr Lickorish warns the government faces a legal challenge over its failure to tackle fuel poverty.
Ministers have a target to eradicate the problem by 2016 but more than six million households are believed to be trapped in the plight.
Mr Lickorish, a government advisor, said: “It is immoral that so many of the poorest pensioners, families and disabled people may put their health at risk because they are afraid of the cost of turning their heating on this winter.”
Mirror
