People who work from home and use more energy will pay an additional £ 113 to their utility company between January and March, according to new research compareethemarket.com.
Households typically use nearly 30% of their annual energy in the first quarter of the year, making it the most expensive quarter of the year. That, combined with the added cost of spending more time at home and the cold snap of Storm Darcy, could result in many households facing a shock bill of £ 113 more than what would be expected for that period.
Typical households paying £ 1,042 per year by direct debit, Ofgem’s current cap on the energy price cap, could see their utility increase their monthly payment from £ 86 per month to more than £ 111 to cover the additional costs.
Increasing usage worries households about how to afford rising costs. compareethemarket.com The latest Household Financial Confidence Tracker shows that nearly a third (30%) of families with children at home said they had trouble paying their bills every week. In addition, 29% of families with children at home said they were concerned about their ability to meet their financial commitments in the coming weeks – more than double the proportion (14%) of families with no children at home who said that they had the same concern, concern.
The increase in the cost of working from home is due to Ofgem recently announcing that it will raise the cap on the price of energy. With 15 million households on their providers’ standard tariff and not switching before April, the annual bill could increase from the current £ 1,042 to £ 1,138. The £ 96 increase includes an additional £ 23 that the regulator has allowed suppliers to bounce off unpaid bills from households struggling financially during the pandemic.
Peter Earl, Head of Energy compareethemarket.com said: “A cold snap and the added energy bills to work from home mean households could face a significant bill shock this quarter. However, many may not realize how much extra energy they are using during lockdown until they give their supplier an actual meter reading which could add to the shock.
“Households are not only faced with higher costs because they spend more time at home. Ofgem also made it possible for utilities to significantly increase their bills in April through the energy price cap. Given the significant strain on some household finances due to the pandemic, the cap increase could not have come at a worse time.
“One way to deal with this cost burden is to see if you can get a better deal elsewhere. It only takes five minutes and can save you money on your bills. “