The current energy crisis is affecting all households across the UK. This means inevitable price hikes and higher energy bills. Here we look at what the energy crisis means and the help out there for tenants
What is the energy crisis?
Wholesale gas prices have increased by 250% this year, and five energy suppliers have collapsed in the last month alone. It is thought that the energy industry could shrink to as little as ten providers in the next few months. This is a vast difference from the seventy or so suppliers this time last year. This has led to a significant increase in energy prices, with rates expected to hike again in 2022.
Several factors have contributed to this energy crisis. Gas demand has risen as the world comes through the pandemic, and the last few winters have been particularly cold. Over twenty-two million homes are connected to the UK’s gas grid, and this will only increase.
How to reassure tenants
If your tenants are concerned about the rising energy cost, there are a few ways you can help. Start by telling them to check who their energy provider is. They will be included in the energy price cap increase if they are on a prepayment metre or standard variable tariff. If they can, shopping around for a better deal is advised, but it will be difficult currently as everything is unsettled.
If they are on a fixed rate tariff, they are likely to be locked into a rate for a few months and therefore need not do anything just now. Once that contract is up, it would be time to shop around for a good deal.
Your tenants should not find themselves without power this winter. There is still a constant supply of energy available and various schemes that help the cost of bills.
Support for poorer homes
There is support available for poorer households. The government provides the warm house discount for low-income homes that are having trouble paying their energy bills. There are also cold weather and winter payments available. These will go to those most in need. Search for more information on the help available through these schemes on Google or the Gov.uk website.
For more information on the services we provide for landlords and tenants, contact Hardings Lettings on 01277 233400.