SOME of the worst affected neighbourhoods in the Gwent region could see their energy bills rise by an average of almost £1,000, new figures suggest.
Energy regulator Ofgem is due to announce a new price cap – which will come into effect at the start of October – today.
Cornwall Insights predicts that after the price cap has risen in October, an average household will pay bills of more than £3,600 per year, significantly more than double the £1,400 figure last October.
From January, this is predicted to further increase to £4,300.
Climate charity Friends of the Earth said there is “no downplaying” the catastrophic energy disaster facing millions of people this winter if bills rise as expected without Government intervention.
Households in Caerphilly are expected to see their energy bills rise by the highest amount post-October, with an average increase of £997 predicted – from £2,183 to £3,180.
The average energy bill of energy crisis hotspot neighbourhoods in Newport is expected to rise by £988 – from £2,157 to £3,146 – while a rise of £979 is expected in Blaenau Gwent.
The most at-risk households in Torfaen could see their bills rise by £932, with the Vale of Glamorgan and Monmouthshire residents seeing rises of £931 and £911 respectively.
Friends of the Earth analysed smart meters and unmetered fuel consumption to determine areas where energy use is above normal levels. It says neighbourhoods with above-average costs and lower than average household income are defined as energy crisis hotspots.
A total of 150 neighbourhoods in Newport, Torfaen, Caerphilly, Blaenau Gwent, Monmouthshire and the Vale of Glamorgan have been highlighted by climate charity Friends of the Earth as being at the greatest risk of financial hardship when the price cap rises in October.
33 out of 47 neighbourhoods in Blaenau Gwent (70.2 per cent) are seen to be at greater risk of financial hardship after the price cap rises, according to Friends of the Earth. This is the second highest percentage of people at risk of financial hardship across England and Wales – behind only Fenland in Cambridgeshire (70.9 per cent).
Caerphilly has the tenth highest percentage of neighbourhoods at risk of greater financial hardship – 58.2 per cent (64 out of 110) – across England and Wales, while 41.7 per cent of neighbourhoods in Torfaen (25 out of 60) have been classified as energy crisis hotspots.
15.8 per cent of neighbourhoods in Newport (15 out of 95), 10.7 per cent of neighbourhoods in Monmouthshire (six out of 56), and 8.9 per cent of neighbourhoods in the Vale of Glamorgan (seven out of 79), are seen as being at greater financial risk.
Across England and Wales, nearly 9,000 areas have been classed as ‘energy crisis hotspots’.
Friends of the Earth has urged the Government to provide meaningful intervention before the autumn price cap rise instead of the “woeful and poorly targeted cash handouts” announced in April.
Mike Childs, head of science, policy and research at the charity, said the Government must “beef up its package of emergency financial support” and protect the most vulnerable to soaring price rises.
The Department for Business, Energy and Industrial Strategy said it is providing £37 billion worth of support to help households during the cost-of-living crisis.
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