Warning owners of certain homes face bombshell rise of £558 in energy bills this winter

Ofgem announced a 10 per cent rise in the cap through this winter and suggested this would increase typical bills by £150 a year - but some will be hit harder

By Rory Poulter, Personal Finance Reporter

Smart Energy shares tips for reducing energy bills

Energy bills in some draughty homes could rise by as much as the equivalent of £558 a year due to the increase in the price cap announced this week, it is claimed.

The industry regulator Ofgem has announced a 10 per cent rise in the cap through this winter and suggested this would increase typical bills by £150 a year.

However, an analysis by experts at the property website Rightmove suggests some older homes face much bigger increases.

It based its figures looking at the Energy Performance Certificate rating given to properties according to how well insulated they are and how they are heated.

As a result, it concluded: “For a home with the highest rated A Energy Performance Certificate, this means average annual bills could rise by £56, compared with the lowest rated G homes, would could rise by an average of £558.”

Woman, envelope in hand, examines utility bill

The industry regulator Ofgem has announced a 10 percent rise in the cap (Image: Getty)

Charities have said the increase in bills, coupled with the government’s decision to remove the Winter Fuel Payment, which is worth up to £300, from 10 million pensions will leave many facing a nightmare choice between heating and eating.

The new figures from Rightmove will fuel a rebellion with Labour ranks with a number of MPs and party insiders saying the Chancellor Rachel Reeves will need to reverse the decision to remove the Winter Fuel Payment or come up with some alternative way to help vulnerable elderly people.

A survey of 14,000 people by Rightmove found 72 percent would be willing to adjust their daily routine for cheaper energy bills.

It found support for so-called dynamic pricing, where people are charged more at peak periods but less at other times, such as through the night.

Disappointed man holding bills for energy

Energy bills in some draughty homes could rise by as much as the equivalent of £558 a year (Image: Getty)

Households that switch tasks, such as turning on washing machines and dishwashers, to after midnight can save money.

Tim Bannister, Rightmove’s property expert, says: “The rising price of energy in recent years means that renters and homeowners are likely having to closely consider their total monthly outgoings when choosing their next home.

“We know that lower bills is one of the biggest motivators for people to go greener, so we expect over time people will increasingly seek out more energy efficient properties in order to keep bills down over the long-term.

“Our research suggests that if something like a dynamic price cap, where energy is cheaper at less popular times of day, was to be introduced, the majority would welcome it if it meant lower bills.”

Nathan Emerson, chief executive at Propertymark, which speaks for estate agents, said: “Homes in the UK are amongst the least energy efficient in Europe and this is unlikely to change without the UK Government providing landlords and homeowners with incentives and access to sustained funding.

"Not only will efficiency targets for the private rented sector be unachievable, ultimately impacting tenants, but in order to limit homeowners' energy bills and fundamentally reduce emissions across the property sector, future rules and requirements must be realistic and attainable with appropriate infrastructure in place."

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