Energy bills to rise if cold snap lingers

Consumers could expect their energy bills to rise by at least £60 as more heating will be required if the cold snap continues into February, the price comparison and switching service uSwitch.com said. However, the company assured households that energy prices may not increase because of the way suppliers have bought gas and electricity at wholesale prices.

Because of the ongoing freezing condition across the UK, the average £3 a day spent to heat a home could rise by £1 a day as households demand for more heating increases. This could translate to an additional £14 to household winter fuel bills if the cold snap lasts a fortnight. But if it lasts two months it could cost households an extra £60.

You can use an energy comparison service such as that offered by uSwitch.com or Confused.com to see which are the best energy plans in your area that best meet your specific needs.

Tom Lyon, energy expert at uSwitch.com, said. “If the cold snap continues through February it could add £60 on to household energy bills, but the cold snap would have to continue for far longer to have an impact on energy prices. Higher demand because of sub zero temperatures and the current rationing of energy to certain businesses does not mean suppliers will need to increase household energy prices.”

Lyon advises consumers to allocate an additional £60 in their budget in anticipation of the rise in their winter fuel bills even as he assures them that the increase in energy bill is only temporary and is caused by the cold snap.

But he dismissed reports that household energy prices could go up because of the increased demand. Lyon described such reports as misleading.

He explained that energy suppliers buy their energy around a year in advance and can meet the current short-term increase in demand by topping up on the daily spot market. This means that consumers do not need to worry about their prices going up in the short to medium term.