EDF has warned that if the government does not do more to assist with energy expenses, half of UK homes would face fuel poverty this winter.
Philippe Commaret, general director for consumers at EDF Energy UK, stated that without additional assistance, families fear a “catastrophic winter.”
Gas and electricity bills are expected to nearly quadruple compared to last year.
10% or more of a household’s disposable income must be spent on energy for the household to be classified as fuel poor.
Mr. Commaret stated that all strategies for preserving the stability of customers’ bills must be studied.
“Without additional government support, more than half of British homes will undoubtedly be in fuel poverty by January,” he stated.
“By way of background, I must say that despite the government’s already-announced support, we face a severe and terrible winter for our customers,” he stated.
The administration implemented a package of support for households in May, but it has stated that no more measures will be disclosed until a new prime minister takes office on September 5.
Mr. Commaret stated that EDF was providing further assistance and advice via an app to its 1,000,000 clients in the United Kingdom.
He stated that the software would assist users in identifying methods to save fuel.
He stated, for instance, that British households could save £60 annually simply by turning off unused appliances.
He advised anyone with concerns about their bill to contact EDF for further assistance. EDF, which provides gas and electricity to British homes, is currently 84 percent controlled by the French government and will shortly be nationalized.
On Friday, the new energy price limit – the maximum amount that suppliers in England, Scotland, and Wales can charge per unit of energy – will be unveiled. The average household’s cost is anticipated to increase to more than £3,500 in October, up from the present amount of £1,971.
As a result of this week’s dramatic increase in wholesale gas prices, it is anticipated that bills will increase considerably more next year, to as much as £4,650 in January.
The price of gas skyrocketed on Monday when Russia announced it will shut down a crucial pipeline for maintenance. The reopening of the Nord Stream 1 pipeline, which transports Russian gas to Germany, is feared by experts.
However, energy costs are not the only factor placing pressure on households. Inflation reached 10.1% in July as a result of increased food prices, particularly for basics like bread, milk, pasta, and butter. Citigroup predicts that inflation could exceed 18% next year.
The Liberal Democrats, Labour, and the majority of large energy suppliers are requesting additional support for homes, including the freezing of the energy price cap at current levels.
All UK homes will receive a £400 discount on their fuel bills beginning in October, with eight million low-income households receiving an additional £650.
In the next two weeks, the National Grid will unveil plans to allow homeowners to receive reductions on their electricity bills if they reduce consumption during peak hours.
