Households that use less energy than the average are likely to face higher bills this year than last - despite the price cap drop
People who live in flats or one-bed houses will generally end up worse off this winter than last - while people in bigger houses could be better off, according to new analysis. It comes after Ofgem revealed the latest energy price cap, which will come into effect from October this year.
New figures analysed by the PA news agency suggest that the average annualised bill for a flat or one-bedroom house with one to two people will be £1,346 between October and December this year. Last year, the same flat’s annual bill would have been £1,306 after government grants are counted - leaving occupants £40 worse off in the final three months of this year than they were last winter.
It assumes that the typical low-use household – the abovementioned flat or one-bed house with one to two people – uses around 8,000 units of gas and 1,800 units of electricity every year. However, not all small houses use less electricity, some might be high consumers because they have poor insulation, while some bigger households need less gas because they have good insulation.
The size of people’s homes matters when it comes to how well they will fare in the change, due to happen on October 1. This is because every household pays the same daily standing charge no matter how much energy they use. From October, this will be around 83p - up from 74p a year ago. Jonny Marshall, an expert at the Resolution Foundation, estimated that about one in three households in England - around 7.2 million low-use households - will face higher bills between October and March. Analysis suggested that among the poorest tenth of English households, nearly half would face higher bills this year than last.
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