Consumers hit out at latest energy price cap rise

People facing another hike in fuel bills because of the increased energy price cap have hit out against the latest cost-of-living blow.

Ofgem is increasing the energy price cap by 6.4%, meaning a household using a typical amount of gas and electricity will see their annual bill rise by £111 a year to £1,849.

As BBC Radio WM spoke to consumers in Birmingham, Hilda Tootsy said: "You get paid. You've got no money left, and they're just going to take more."

Ofgem said switching to a fixed tariff could provide certainty over payments and reduce costs - a view echoed by personal finance experts.

People raised concerns about pensioners and some expressed anger sustainable heating alternatives such as air pumps were not more affordable.

Kevin Greaves said: "It's quite distressing that we live in a civilised Western civilisation and we still can't solve basic needs for people."

Sarah Hague said she was making daily decisions about whether to use her oven or not, and whether to put on a jumper to save on heating.

Personal finance expert Laura Rettie said at one stage there had been no point in switching energy suppliers because no provider could have afforded a cheaper price than competitors.

"Now though, there are providers who can offer it cheaper to you so it's definitely worth shopping around," she said.

Lewis Taylor, chief executive of the Wolverhampton advice company Energy Angels, said the increase was higher than expected.

"It really is putting the squeeze on people," he said. "We're still not out of this cost-of-living crisis yet, so people are still struggling."

He added his organisation would like to see more regulation on wholesale energy producers, which distribute to suppliers.

Responding to the latest price increase, Energy Secretary Ed Miliband said the government was determined to protect people by extending the Warm Home Discount and encouraging energy creation in the UK.

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