FROM April 1, the energy price cap will rise by 54% for 22 million households on default or standard variable tariff across the UK. 

That’s an average annual increase of £700, meaning most people will be paying around £166 each month on their gas and electricity or much more depending on their circumstances. 

If you’re coming off a fixed rate deal - as many millions of us are - be prepared for a bigger shock. Last week I received an e-mail from my supplier E.ON, offering me a new energy deal, or if I did nothing I’d go onto their default or standard variable rate.

Unsurprisingly, both “deals” were exactly the same.

The E.ON “EnergyPlan” deal will see my gas costs rise by 121% from April, with electricity prices rising by 100%. I suppose I had it relatively good for a year. 

There is nothing anyone can do - there are no better deals to switch to on the market - all energy companies are hiking-up their prices after the cost of energy spiked during the pandemic. 

People are now like fish in a barrel and are being reeled in by massive fuel price hikes. The worry is there is likely to be another energy price cap rise in October this year. It’s going to be a long cold and bitter winter for a massive number of people.

We often hear how Scotland is generating more renewable energy and yes, that is excellent.  Of course, we don’t own those companies, or the power generated. What financial benefit do ordinary Scots get from renewables? 

In 2017, the Scottish Government promised to set up a publicly-owned, not-for-profit company to sell gas and electricity to customers at low prices by 2021. That would have been a very good thing, but this pledge was last seen drifting somewhere on the wind. 

The trade body Energy UK projects the possibility of average gas and electricity bills reaching £3,000 per annum later this year, if wholesale gas prices continue to spike. That would be an unprecedented hike of 131% from last year.

The charity National Energy Action believes the number of UK households in fuel poverty will go up from 4 million in October 2021, to 6.5 million after April’s price rise. If average costs increase to £3,000 from October this year, National Energy Action predict 8.5 million households in fuel poverty.

The definition of “fuel poverty” is spending more than 10% of your net income on energy bills after housing costs have been deducted. “Extreme fuel poverty” is where you have to spend more than 20% for your reasonable fuel needs.

Add to these problems the rising costs of rent in the private rental sector. This is where many people are at the sharp end with little or no protection against the vagaries of the free market. The private tenant referencing agency HomeLet found average UK rents rose to £1,069 a month in February. That’s an 8.6% increase from the year before.

From October, HM Treasury is applying an upfront payment of £200 for 28 million households to be paid to energy suppliers, and then repaid by you in five £40 annual instalments from 2023-27.

All Scottish households in bands A to D will receive a £150 discount from their council tax bill from the Scottish Government, as will those in other bands who qualify for reduced rates. This will apply to 73% of households across Scotland and will help defray the cost of council tax increases in 2022-23. 

If you are struggling with energy bills just now there are three weeks left to apply to the Scottish Government’s Home Heating Support Fund for financial assistance. 

This fund is aimed at those suffering financial hardship and is designed to alleviate the situation of households who may be rationing their usage due to cost.  The fund is open to applicants regardless of their payment method or what fuel they use to heat their home.  The closing date for applications is 31 March 2022.

In order to be eligible for funding, you have to show you’ve received energy or debt advice from an approved free adviser. Applications have to be submitted by “trusted referral partners” on behalf of a household. You can get free assistance to do this in Glasgow from online money advisers at debtnavigator.scot.  Full details of the fund is available at homeheatingadvice.scot. The fund adopts the Scottish Government’s definition of “fuel poverty”.

As long as other eligibility criteria are met, people who are in Scotland on visas with no recourse to public funds can also apply to the fund.

If energy prices continue to rise as expected there will be an urgent need for a new Home Heating Support Fund this winter.