Why Energy Poverty in the U.K. is a Growing Problem

As bills rise, 1 in 10 people in the U.K. may not be able to afford consistent heat and electricity. Bloomberg's Jess Shankleman reports on energy poverty.
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Ian Ecclestone tries whatever he can think of to lower his energy bills. He turns off the heat in his Birkenhead house on weekdays, takes “navy showers” with sporadic bursts of hot water and microwaves his meals at work.
It’s still not going to make much difference come April. Ecclestone likely will be among 4 million more people shoved into “energy poverty” when the U.K. regulator raises its cap on the amount suppliers can charge customers. Bills are expected to jump by almost half, propelled by runaway costs for natural gas, and the toll will be significant: 1 in 10 people in the U.K. may not be able to afford consistent heat and electricity.
“I don’t know what I’ll do,” the 46-year-old warehouse worker said, his frustration clear. “I can’t do more to save energy, it will be ridiculous.”
About 2.2 million people already meet the government definition for energy poverty by spending more than 10% of their income on heat and electricity. After regulator Ofgem’s recalculation this week, that category will triple to 6.6 million, according to estimates by the Resolution Foundation think tank.
They’ll include working families, the elderly, the sick, and the unemployed. The Black population will be particularly hard hit, as they spend more of their disposable income on energy than any other ethnic group, according to government data.
Driving the crisis is the price suppliers pay for wholesale gas, already four times higher than a year ago and expected to stay there into next winter. That’s the biggest chunk of a household bill, and there’s not much the government can do about it given tight global supplies and rising geopolitical tensions between Ukraine and Russia, the main provider to Europe.
Exacerbating the stress is a general cost-of-living crisis gripping the nation, with inflation currently at a three-decade high of 5.4% and taxes rising in April to fund health and social care. The government could announce a package of palliative measures as soon as Thursday.
Bank of England policy makers have expressed alarm about rising prices and are widely expected to lift the benchmark lending rate to 0.5% on Thursday, delivering the first back-to-back increases since 2004.
#Gas #Energy #Explained
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[@tanjoy0205]

Well this situation is bad for everyone

[@Jade-bf5we]

Worse way to get your electric and gas are pre-payment meters.

[@belecavoroncov3506]

- Who is this howling so terribly in the swamps, Stelpton???
- This is Johnson, Sir Baskerville.
They brought him a payment for electricity and gas!