Friday, September 30

UK households’ energy debt at record high even before bill rises, research suggests – business live | Business


Good morning, and welcome to our live, rolling coverage of business, economics and financial markets.

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UK households owe £1.3bn to their energy suppliers, two months before bills are set to soar by more than 80%.

“,”elementId”:”c458fe64-3cf9-47c4-8b59-16fcd8b5f695″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The overall debt bill is already three times higher than it was a year ago, experts at Uswitch said today, and it seems likely it will grow further over the winter.

“,”elementId”:”ed950e3a-1b00-4ccf-99e0-9fb2fd209e38″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Six million homes across the UK owe an average of £206 to their energy provider, according to the uSwitch report. In April the same average debt was £188.

“,”elementId”:”c5bd184f-d4cc-4962-90b2-ae6ff29024f3″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Normally at this time of year people build up credit to help even out heating bills during the winter months.

“,”elementId”:”2bfc2b4a-442b-424f-9137-c709b2aea6d0″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Th energy regulator Ofgem is expected to hike the price cap on energy bills to £3,582 a year for the average household from October, according to a new forecast. Analysts at Cornwall Insight predicted further rises, to £4,266 in January and then £4,427 from the start of April.

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Justina Miltienyte, head of policy at uSwitch, said:

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Energy debt has hit an all-time high with the worst possible timing, turning this winter’s energy price hike into a deeply precarious situation for many households.

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This is an alarming situation, as summer is traditionally a time when households are using less power for heating, which helps bill payers to build up energy credit ahead of the winter.

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“,”elementId”:”bf7dd1d2-79e9-43a0-af94-1878b5bccea2″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Markets are waiting for the latest US inflation figures for July, out at lunchtime. We are expecting inflation to ease to 8.7% from 9.1%, largely due to recent sharp falls in gasoline and other energy prices.

“,”elementId”:”2165affa-e91c-43f8-8966-cfe1f5f12509″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

However the bigger concern is around core prices, which exclude volatile items like food and energy and are expected to rise at an annual rate of 6.1%, up from 5.9%.

“,”elementId”:”446205d4-9488-434e-8d63-86c4f6c6a6c9″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

In Germany, final figures show that inflation eased to 7.5% in July from 7.6% in June, but remained high.

“,”elementId”:”1c9264d1-bdc3-427f-95cf-19cb86a6e5f1″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The €9 rail ticket offered for unlimited travel and the fuel discount had a downward effect onto rate, as did the removal of the EEG renewables surcharge in July, said Destatis, the German statistics office.

“,”elementId”:”ea1c36b1-0557-4630-ab14-072b045fa09b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

In China, consumer price inflation is rising at the fastest rate since July 2020, at an annual pace of 2.7% last month, pushed up by higher pork prices. Food prices rose 6.3% compared with a 2.9% uptick in June. Pork prices jumped 20.2%, reversing a 6% decline in June as production slowed.

“,”elementId”:”16e66dfa-6d80-436b-baf2-850f4d872020″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Factory gate prices eased to a 17-month low, however, despite global cost pressures, as slower domestic construction weighed on demand for raw materials. China’s producer price index rose 4.2% year-on-year, down from 6.1% in June, according to the National Bureau of Statistics.

“,”elementId”:”84510338-0802-4630-ac31-68f12fed1cc8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Producer prices fell 1.3% in July from June, the first monthly drop since January, with the biggest falls in the price of metals and petrochemicals.

Also Read  How to make the most of the British asparagus season | Food

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This is giving Chinese policymakers room to stimulate the flagging economy, in stark contrast to central banks elsewhere that are scrambling to rein in rampant inflation with aggressive interest rate hikes even as recession looms.

“,”elementId”:”5f3cd3aa-4f31-49b0-9c6f-1cbc8105b149″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The Agenda

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    n

  • 9am BST: Italy inflation for July final (forecast: 7.9%)

  • n

  • 1.30pm BST: US Inflation for July (forecast: 8.7%, previous: 9.1%)

  • n

  • 5pm BST: Russia inflation for July (forecast: 15.3%)

  • n

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Key events

Good morning, and welcome to our live, rolling coverage of business, economics and financial markets.

“,”elementId”:”ff9dddf0-960d-4630-9707-2cb30ef2b623″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

UK households owe £1.3bn to their energy suppliers, two months before bills are set to soar by more than 80%.

“,”elementId”:”c458fe64-3cf9-47c4-8b59-16fcd8b5f695″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The overall debt bill is already three times higher than it was a year ago, experts at Uswitch said today, and it seems likely it will grow further over the winter.

“,”elementId”:”ed950e3a-1b00-4ccf-99e0-9fb2fd209e38″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Six million homes across the UK owe an average of £206 to their energy provider, according to the uSwitch report. In April the same average debt was £188.

“,”elementId”:”c5bd184f-d4cc-4962-90b2-ae6ff29024f3″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Normally at this time of year people build up credit to help even out heating bills during the winter months.

“,”elementId”:”2bfc2b4a-442b-424f-9137-c709b2aea6d0″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Th energy regulator Ofgem is expected to hike the price cap on energy bills to £3,582 a year for the average household from October, according to a new forecast. Analysts at Cornwall Insight predicted further rises, to £4,266 in January and then £4,427 from the start of April.

“,”elementId”:”42a28100-2c3f-40a9-ac0c-a5a94a31008b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Justina Miltienyte, head of policy at uSwitch, said:

“,”elementId”:”1aef53fd-e46f-4707-b028-35436af3b526″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

n

Energy debt has hit an all-time high with the worst possible timing, turning this winter’s energy price hike into a deeply precarious situation for many households.

n

This is an alarming situation, as summer is traditionally a time when households are using less power for heating, which helps bill payers to build up energy credit ahead of the winter.

n

“,”elementId”:”bf7dd1d2-79e9-43a0-af94-1878b5bccea2″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Markets are waiting for the latest US inflation figures for July, out at lunchtime. We are expecting inflation to ease to 8.7% from 9.1%, largely due to recent sharp falls in gasoline and other energy prices.

“,”elementId”:”2165affa-e91c-43f8-8966-cfe1f5f12509″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

However the bigger concern is around core prices, which exclude volatile items like food and energy and are expected to rise at an annual rate of 6.1%, up from 5.9%.

“,”elementId”:”446205d4-9488-434e-8d63-86c4f6c6a6c9″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

In Germany, final figures show that inflation eased to 7.5% in July from 7.6% in June, but remained high.

“,”elementId”:”1c9264d1-bdc3-427f-95cf-19cb86a6e5f1″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The €9 rail ticket offered for unlimited travel and the fuel discount had a downward effect onto rate, as did the removal of the EEG renewables surcharge in July, said Destatis, the German statistics office.

“,”elementId”:”ea1c36b1-0557-4630-ab14-072b045fa09b”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

In China, consumer price inflation is rising at the fastest rate since July 2020, at an annual pace of 2.7% last month, pushed up by higher pork prices. Food prices rose 6.3% compared with a 2.9% uptick in June. Pork prices jumped 20.2%, reversing a 6% decline in June as production slowed.

“,”elementId”:”16e66dfa-6d80-436b-baf2-850f4d872020″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Factory gate prices eased to a 17-month low, however, despite global cost pressures, as slower domestic construction weighed on demand for raw materials. China’s producer price index rose 4.2% year-on-year, down from 6.1% in June, according to the National Bureau of Statistics.

“,”elementId”:”84510338-0802-4630-ac31-68f12fed1cc8″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Producer prices fell 1.3% in July from June, the first monthly drop since January, with the biggest falls in the price of metals and petrochemicals.

“,”elementId”:”a6a306b2-95b8-450e-9b5c-f606f04655ca”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

This is giving Chinese policymakers room to stimulate the flagging economy, in stark contrast to central banks elsewhere that are scrambling to rein in rampant inflation with aggressive interest rate hikes even as recession looms.

“,”elementId”:”5f3cd3aa-4f31-49b0-9c6f-1cbc8105b149″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

The Agenda

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    n

  • 9am BST: Italy inflation for July final (forecast: 7.9%)

  • n

  • 1.30pm BST: US Inflation for July (forecast: 8.7%, previous: 9.1%)

  • n

  • 5pm BST: Russia inflation for July (forecast: 15.3%)

  • n

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filters BETA

Emma from Kent was on BBC radio 4’s Today programme, talking about how she’d been trying to clear her energy debt and saying that thing would become “unbearable for so many families”.

As much as I’ve paid off a fair amount so far, I’m not going to be able to clear the outstanding amount before winter comes. With the energy prices going up in October and then even more so in January this winter is going to be tough.

I was working towards a better future and hopefully not repeating the Christmases we’ve had for the past two years. Last Christmas we were averaging a food shop once every 10 weeks if we could… I was hoping that with us both working full-time we wouldn’t have to go back to a food bank. I guess never say never. It’s going to be unbearable for so many families and to be honest I’m dreading it.

Introduction: UK households’ energy debt at record high even before bill rises

Good morning, and welcome to our live, rolling coverage of business, economics and financial markets.

UK households owe £1.3bn to their energy suppliers, two months before bills are set to soar by more than 80%.

The overall debt bill is already three times higher than it was a year ago, experts at Uswitch said today, and it seems likely it will grow further over the winter.

Six million homes across the UK owe an average of £206 to their energy provider, according to the uSwitch report. In April the same average debt was £188.

Normally at this time of year people build up credit to help even out heating bills during the winter months.

The energy regulator Ofgem is expected to hike the price cap on energy bills to £3,582 a year for the average household from October, according to a new forecast. Analysts at Cornwall Insight predicted further rises, to £4,266 in January and then £4,427 from the start of April.

Justina Miltienyte, head of policy at uSwitch, said:

Energy debt has hit an all-time high with the worst possible timing, turning this winter’s energy price hike into a deeply precarious situation for many households.

This is an alarming situation, as summer is traditionally a time when households are using less power for heating, which helps bill payers to build up energy credit ahead of the winter.

Markets are waiting for the latest US inflation figures for July, out at lunchtime. We are expecting inflation to ease to 8.7% from 9.1%, largely due to recent sharp falls in gasoline and other energy prices.

However the bigger concern is around core prices, which exclude volatile items like food and energy and are expected to rise at an annual rate of 6.1%, up from 5.9%.

In Germany, final figures show that inflation eased to 7.5% in July from 7.6% in June, but remained high.

The €9 rail ticket offered for unlimited travel and the fuel discount had a downward effect onto the rate, as did the removal of the EEG renewables surcharge in July, said Destatis, the German statistics office.

In China, consumer price inflation is rising at the fastest rate since July 2020, at an annual pace of 2.7% last month, pushed up by higher pork prices. Food prices rose 6.3% compared with a 2.9% uptick in June. Pork prices jumped 20.2%, reversing to 6% decline in June as production slowed.

Factory gate prices eased to a 17-month low, however, despite global cost pressures, as slower domestic construction weighed on demand for raw materials. China’s producer price index rose 4.2% year-on-year, down from 6.1% in June, according to the National Bureau of Statistics.

Producer prices fell 1.3% in July from June, the first monthly drop since January, with the biggest falls in the price of metals and petrochemicals.

This is giving Chinese policymakers room to stimulate the flagging economy, in stark contrast to central banks elsewhere that are scrambling to rein in rampant inflation with aggressive interest rate hikes even as recession looms.

Agenda

  • 9am BST: Italy inflation for July final (forecast: 7.9%)

  • 1.30pm BST: US Inflation for July (forecast: 8.7%, previous: 9.1%)

  • 5pm BST: Russia inflation for July (forecast: 15.3%)


www.theguardian.com

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