Big Freeze Fortnight Costs Households £1.6 Billion
CHESTER, England, February 22, 2012 /PRNewswire/ --
£77 extra per household added to the cost of annual energy bills over February cold snap
Over a third of Brits worried about affording their energy bills as a result of the "Big Freeze"
Contact your provider immediately if you are concerned about paying for your consumption, says MoneySupermarket
British households will be forking out £1.6 billion extra, collectively, on their energy bills as a result of turning up the heating during the recent "Big Freeze" according to MoneySupermarket.com.
The UK's leading comparison site found over a third (38 per cent) of energy users are concerned about being able to afford their energy bills as a result of the recent cold snap, with one in five (18 per cent) leaving their heating on constantly, and another 20 per cent turning it on more than usual due to the recent cold weather. In total, 81 per cent of respondents claimed they had had their heating on more than usual as a result of the cold snap.[1]
MoneySupermarket estimates that if average household energy consumption doubled since the first Met Office warning about severe cold weather in late January[2], bill payers could see around six per cent, or £77 added to the cost of their annual bill just for the last fortnight alone.[3]Collectively, households across Britain who used their heating more than usual during this period, will need to fork out approximately £1.62billion as a result.
Furthermore, with homeowners using around 40 per cent of their annual energy consumption during the winter months[4], and with a customer on a standard tariff paying on average £1,251 a year by quarterly cash and cheque (QCC), those who used their heating more, may find their winter bill could now stand at around £578. [3]
Scott Byrom, energy manager at MoneySupermarket said: "Many of us have upped the use of our heating over the past few weeks to cope with the bitterly cold temperatures and snow. In addition, with the expensive Christmas period only just behind us, a quarterly energy bill could be landing on the doorstep in the next few weeks which could be anywhere between £500 and £600 leaving many cash strapped energy customers struggling to find the money to cover it.
"For those looking to reduce the amount they pay for their energy, I would advise shopping around to ensure you are on the correct tariff for your usage and region. Moving online to a dual fuel tariff and paying monthly by direct debit is the easiest way to make savings, and will ensure your hard earned cash doesn't go to waste - a standard QCC customer switching through MoneySupermarket could save an average £170 a year. Those on the cheapest online tariff during the recent cold spell will have paid around £442.42 for the energy used over this period, £136 less than those who've never changed their energy deal**.
"Bill payers really need to take action and move to a better value tariff to ensure that they don't continue to pay more than is necessary for the energy they use. Making your home as energy efficient as possible will also go a long way to cutting the cost of your bills during the rest of the year. For those who are really concerned about being able to pay their next quarterly bill as a result of the 'Big Freeze', it's crucial they speak to their provider about the assistance and social tariffs on offer."
Notes to editors:
[1] Have you had your heating on for longer because of the cold snap?
- Yes - I've had my heating on constantly and am worried about how I'll pay for it - 17.6%
- Yes - I've had my heating on constantly but will be able to afford the bill - 12.1%
- Yes - I've had the heating on more than usual and am worried about how I'll pay for it - 20.5%
- Yes - I've had the heating on more than usual but will be able to afford the bill - 30.6%
- No - I keep my energy usage to a minimum to keep the cost down - 11.4%
- No - I've kept my energy usage the same but not because of concern about the cost - 3.9%
- No - I can't afford to have the heating on at all - 2.4%
- No - I don't have central heating - 1.5%
[2] http://www.metoffice.gov.uk/news/releases/archive/2012/
[3] Standard, fixed and online / best energy tariffs offered by the 'Big Six' providers
Average
Average Saving
Standard Average Online/Best against
Provider Tariff Tariff Fixed Tariff Standard
British Gas GBP1,260.56 GBP1,099.05 GBP1,150.06 GBP161.51
Web Saver 13 Online Fixed
GBP1,202.38
(wef
EDF Energy 07.02.2012) GBP1,080.12 GBP122.26
Fix to March 2013
GBP1,222.65
(wef
E.ON 26.02.2012) GBP1,113.43 GBP1,189.88 GBP109.22
SaveOnline v12 Fixed Price Apr 13
GBP1,243.48
(wef
npower 01.02.2012) GBP1,086.39 GBP1,033.19 GBP165.52
Bill Saver May 2013 Go Fix 11 (wef 20.02.2011)
Scottish
Power GBP1,349.42 GBP1,070.42 GBP279.00
Online Fixed Price Energy
(May 2013)
GBP1,229.95
(wef
SSE 26.03.2012)
GBP1,027.04
First Utility iSave v10
GBP1,059.01
New Energy Fixed (not
available in
OVO Energy Scottish Hydro region)
Average GBP1,251.41 GBP1,081.48 GBP1,104.58 GBP167.50
Sourced by http://www.moneysupermarket.com 17.02.2012
The average annual bill for a standard energy customer is £1251.41
We estimate that 40 per cent of this is used in the colder winter quarter (13 weeks) - see footnote 4
Therefore £1251.41 / 40 per cent = £500.56 / 13 = £38.50 spent per week.
If this was to have doubled over the last two weeks it would have added £77 to the average annual bill or 6.15 per cent. (£38.50 x 2 = £77 and £77 / £1251.41 = 6.15 per cent)
£500.56 + £77 = £577.56 (£578) - the average cost of a quarterly 'Winter' bill this year as a result of the cold snap
According to latest stats from Labour Force Survey (LFS), there are 26.024 million households in the UK (2010). MoneySupermarket research found 81% of respondents had the heating on more than usual as a result of the cold snap.
81 per cent of 26.024 million households = 21,079,440 households which had their heating on more than usual
21,079,440 households x £77 (the added cost to energy bills as a result of the cold snap) = £1,623,116,880.40 or £1.62 billion
* These are approximate figures only
**Same method used to calculate the winter bill as above but base figure is the cheapest tariff price; £1,027.04 - iSave v10 instead of the average standard price.
[4] Quarterly energy consumption breakdown based on typical annual household consumption:
Quarter Electricity (%) Gas (%) Combined (%)
13 August - 12 November 21.3 14.2 17.75
13 November - 15 February 32.9 45.9 39.4
16 February - 16 May 25.1 29.6 27.35
17 May - 17 November 20.7 10.3 15.5
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SOURCE moneysupermarket.com
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