Although snow can be fun for some, with schools closed and children spending their days playing outdoors and having snowball fights, this sort of cold weather always has a more worrying side. I hope anyone with an elderly neighbour has been in touch to make sure they were OK, and want to thank the emergency services who have helped trapped motorists and others. The RAF are still having to ferry supplies to snowbound villages in remote parts of the country.
The unseasonal cold weather we have experienced will mean increased energy costs as Pendle residents turn the thermostat back up. For some, it will put real pressure on their finances, especially if they are on a bad deal from their energy supplier. The increase in demand may also lead to an increase in prices, which won’t help anyone struggling.
With this in mind, the Government is introducing an energy bill cap to help all those on that may struggle to pay their bills. Once passed, the Tariff Cap Bill will put in place a requirement on Ofgem to control energy tariffs until 2020. It will mean a lock can be set on poor value tariffs which is often given to those on pre-payment meters for example. The government wants Ofgem to implement the rule as soon as possible so customers get the protection they need by next winter.
This will protect the 11 million households across the United Kingdom currently on a standard variable or other default energy tariff and not protected by existing price ceilings. Some consumers are paying up to £300 more than they need to and years of trying other measures has shown legislation is needed to bring overcharging under control.
The Bill is part of a package of measures being introduced by the Government to increase competition in the energy market and lower prices for consumers, including the rollout of smart meters in every household and initiatives to promote smarter and faster switching.
However, we can all do our part by checking what our current deal is and whether it’s the best available. I switched energy supplier late last year and am paying significantly less as a result. There’s plenty of help available to find out whether switching is a good idea and how to do so.