Over 15 million households plan to ration their energy use this winter to cope with sky-high energy costs, according to a new survey of 5,300 energy consumers by Uswitch.com.
Almost six in ten (57%) people in 15 million homes have already cut back, or plan to ration their energy use this winter, to reduce bills
Over a third of people (36%) who rationed their energy last winter said it affected their health and wellbeing
A quarter (24%) say the rising cost of energy has substantially affected their disposable income
Consumers are more worried about the cost of energy than any other daily expense– and 62% expect prices to go up in the coming months
Big six energy suppliers are urged to help consumers by passing on savings from lower wholesale energy costs.
Consumers would rather go without heating than pay for sky-high bills, according to new research from Uswitch.com, the independent price comparison and switching service.
As winter fast approaches, the data reveals that 15 million households are planning to ration energy this winter to reduce bills. Worryingly, over a third (36%) who rationed their energy last year said it had compromised their health.
Wholesale prices – which make up around half of an energy bill – have continued falling in recent months. However, these lower costs are yet to be passed on to hard-pressed consumers, who are making sacrifices in order to cope with high bills.
Not only are a significant number being forced to compromise on their health and wellbeing, but almost a quarter (24%)of consumers admit that the rising cost of energy has substantially affected their disposable income. The average UK home is set to spend £1,265 on energy over the course of this year – £53 more than last year and £271 more than three years ago. Despite the fact that a number of new deals have recently launched for under £1,000, over half (62%)of consumers expect that energy prices will continue to rise.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “In this day and age it’s shocking to see so many being forced to go without heating and risk their health, simply to cope with high energy bills. With the average bill now an eye-watering £1,265 – 168% higher than ten years ago – it’s little wonder that energy costs top consumers’ concerns.
“Wholesale energy prices have been falling for a long time now and it’s high time for the big six suppliers to pass on these reductions to hard-pressed consumers, who will be going cold because they simply can’t afford to keep the heating on.
“Consumers do have a choice, however, and can take control of their energy. Making sure that your home is insulated, draught-proof and taking small actions like making sure appliances aren’t left on standby, are all simple ways to use less and waste less energy.
“And, with £300 difference between the average bill and the cheapest deal currently on the market, switching to a better tariff and paying less is another effective way to save money this winter.”
FOR MORE INFORMATION
Jason Wakeford
Phone: 0203 872 5612
Email: jason.wakeford@uswitch.com
Twitter: @UswitchPR
Notes to editors
Research conducted by YouGov from 17th to 27th October 2014, amongst 5,262 UK energy consumers (aged 18+). The figures have been weighted. * Consumers refers to those who are involved in paying a dual fuel provider for their household energy.
1. In response to: ‘Which ONE of the following statements BEST applies to you?’, 35.54% of energy consumers said I am already cutting back on the amount of energy I use to make my bills cheaper and 21.94% said I am planning to cut back on the amount of energy I use this winter to make my bills cheaper. 35.54% + 21.94% = 57.48% of energy consumers who have already reduced, or plan to reduce, their consumption over the winter months to save money. There are 26.4 million households in the UK according to ONS. 57.48% (number who already are, or are planning to ration their use of energy this winter) of the total number of households is. 15,174,720.
2. Research referred to was conducted with the Uswitch.com Consumer Opinion Panel amongst 1,021 respondents in January 2014. In response to: ‘Do you think you’re achieving the right balance this winter between keeping your home warm and managing costs?’ 36% said ‘No – the cutbacks I’m making are affecting my quality of life and/or health.’
3. Returning to the research carried out in October 2014 by YouGov: In response to: ‘For the following question, by 'disposable income', we mean the money you have left over after paying taxes and essential bills (e.g. rent/ mortgage payments, energy bills, food bills etc.). Thinking about the rising cost of energy and its impact on your disposable income, which ONE of the following statements BEST applies to you?’, 24% said the rising cost of energy has substantially reduced my disposable income.
4. In response to: ‘Thinking about the rising cost of day-to-day living in general, which, if any, of the following day-to-day living costs are you currently worried about?’, 54% of consumers said energy bills, 47% said the amount they have to spend on groceries and 40% said the cost of petrol.
5. In response to: ‘In general, which ONE of the following BEST describes what you expect will happen to energy prices this winter?’, 62% of consumers said they expect energy prices to go up.
Average energy prices based on dual fuel energy bill based on medium usage across all regions (payment on receipt of bill)
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