‘According to the Office for National Statistics, 93% of adults in Great Britain reported an increase in their cost of living in August-September 2022.
Low-income households spend a larger proportion than average on energy and food, so are more affected by price increases.’
It’s Thursday the 17th of November 2022 and Jeremy Hunt the new Chancellor has just proposed the new budget.
So let’s have a look to see what it mean’s to us (the people in the real world) and what happens going forward.
Originally Mr Hunt said the ‘Energy Subsidy would last only to end of March 2023’ (this is the £63ish reduction you see on your electricity bill every month) now will be extended to the end of March 2024. Good news but not sure how we will pay back the £65 billion pounds a year to do this.
BUT, and there’s always a but.. From April 2023 there will be another rise in the cost of energy by an additional 20% (OMG)
So before I go on lets just look at some figures here.
In 2018 it was announced that the price of Electricity would be going up in 2020, the majority of people just ignored this saying that they would never raise the price. Don’t forget I think I was paying at the time about £0.12p per KW, this slowly increase to around £0.16p to the end of 2019. The energy price cap was applied as would be looked at every 6 months to review this (Now every 3 months) So in 2021 it slowly increased to around £0.19p KW. We were notified that in 2022 April the price would go to £0.32p to £0.34p KW. I started to warn friends and customers about the massive price hikes which would be coming in 2022. Forecasting that in October that the price of Electric could reach £0.64p KW, people thought I was crazy and to be honest I was doubting the Data I was getting as I thought the People would revolt at this price hike. The £0.32p KW came in as predicted in April and was set to increase in October, then they through a spanner in the works saying that instead of reviewing the Price Cap every 6 months this would not happen every 3 months. Predicting £0.64p KW in October, £0.74p KW in January and a whopping £0.85p KW in April.
By this time the beat of drums could be heard throughout the country so the Government stepped in and instead of giving £65 billion to us in the form of grants to add Solar to our houses, softening the price hike blow, they decided to give it to the energy companies instead to reduce our bills. (Bit like taking a loan out to pay a loan)
This October instead of the 80% price increase it was only around a 45% taking my price per KW to £0.50p KW instead of £0.64p KW
Okay, so now we have some background here but there is a big Elephant in the room who nobody want’s to talk about. (Kicking the can down the road)
I’m guessing when April 2024 arrives the price will be £0.97p KW (I have customers already paying £0.66p KW now and £0.97p in April 2023)
So what are you trying to say Stuart? I can hear you all mumbling….
If you’re thinking about Solar do it now or early 2023 before the whole thing implodes in on itself, for my friends and customers who already know me you will understand that this is not a sales pitch nor fake news, we are living this. I try to educate everyone and hopefully save them some money.
Anyway I have rambled on for long enough and thankyou if you made it to the end.