You could pay higher energy prices at peak time usage

Energy ‘Surge Pricing’

Date: 12/02/2022
Energy Switch And Advice
Quick Read Article.

Some energy companies are supporting a radical new tariff, “surge pricing’, that will see customers being charged even more money for using gas and electric at peak times.

According to reports in the Mail Online and the Independent, energy companies are signing up for “surge pricing”, that will mean that customers will be paying at a higher rate for using energy at peak times.

It is reported in the Mail Online, that Scottish Power, EDF and Octopus Energy back this new tariff and plan. The are amongst the biggest energy suppliers in the UK.

With the price of energy already increasing by an average of £693 per year, this new tariff would mean customers would be forced to pay even more at peak times.

If you are watching television, making tea or coffee, cooking, using your computer or having the heating on during peak times, you will be paying extra for the gas and electricity.

An energy company boss said that this could be good for the consumer, as some consumers will be able to use energy at a lower rate, if they use it off peak times.

Energy companies are arguing that prices for using energy overnight would fall. That is brilliant, but, that will not be practical for most people.

It is argued that this pricing will create a more flexible and efficient energy usage.

However, peak time is considered to be from about 4pm to 9.30 pm, that is the time when most people come from work and have to do their cooking and that is the time when most people would be using energy at home.

That is the reason why this time is the peak time as most people are at home. People have to use energy at this time. People cannot do their cooking at off peak times, when they are at work or outside. And, most people cannot do their cooking at night times.

The energy usage will be reported by Smart Meters at every 30 minutes intervals so energy companies can get up to date data for energy usage and the time of usage.

It is thought that some households who are struggling financially might be forced to ration their energy usage at peak times. This will hit people in the pockets even more. People are already feeling the pinch in the price rise for food and general inflation.

And, this policy would force a lot of people not to use energy at the time they probably need to use it the most.

If you would like to save money, read our article: Realistic Ways To Save Money Around the House.

Comment

With energy prices already going up and people struggling to pay for their energy, this would put further strain on them. Especially, low income households.

There is a rise in the amount of people using Food Banks, and if this new tariff is put into place, this could mean even more people depending on Food Banks to feed themselves.

The price of groceries and food has gone up so shopping for everyday items, now costs more. There has also been a rise in rent, so people are left with less money from their monthly budgets.

Additional Information

If you are struggling with paying for your energy, read our article: Help with energy bills (5 Support Available).

Also read our article: Grants and benefits to pay gas and electric.

If you want to reduce your energy bills, read our article: How To Reduce Your Energy Bills.

If you are having financial difficulties go to Citizens Advice here. Citizens Advice.

Sources

Mail Online

Independent