A charity reports that energy costs are higher in north Wales than elsewhere in the UK. 

According to National Energy Action, forthcoming changes on how energy bills are paid in April could leave 7.5 million British households in fuel poverty.

According to the company’s director in Wales, fixed daily charges in North Wales are more than £120 more per year than in England’s East Midlands. Regulator Ofgem said it would keep standing charges under review.

Due to increased standing charges for customers with prepayment metres and the end-of-energy bills support scheme payments, the energy bills of some low-income households could increase by 40%.

Ben Saltmarsh, head of Wales for National Energy Action, stated, “Energy standing charges are set to reach a new record high; in north Wales, they will be higher than anywhere else in the UK.”

“Standing charges for pre-paid customers, typically those with the lowest incomes and already in debt to their supplier, will exceed £350 per year for dual fuel households in south Wales,” Mr Saltmarsh explained that standing charges are a fixed daily amount that everyone must pay, regardless of how much energy they consume, to cover the cost of gas or electricity supply.

“The price ceiling varies by region due to differences in network charges, which are essentially the cost to transport energy to your location,” he explained. 

“Overall, Wales performs poorly.”

The residents of North Wales and Merseyside, one of the 14 regions of the UK based on how the network is divided, have the greatest average costs of all regions. It is approximately £40 per year more than those in second place and over £120 per year more than those in the East Midlands of England, which has the cheapest overall rate. 

Those in south Wales are ranked third, so this is not encouraging news. Mr Saltmarsh urged Ofgem to revise this in its next price cap period and, over the long term, to find a method to make energy more affordable for low-income households.

Ofgem stated, “Following a review of a portion of electricity standing charges sheltering the cost of supplier failures, we considered moving the costs from standing charges to consumption, but the numbers simply did not add up.

“According to our analysis, it would have a disproportionately negative impact on some of the most vulnerable consumers, such as those with disabilities and the elderly, who consume large amounts of energy and are least able to reduce their consumption, while resulting in minimal savings for those it would benefit – approximately £1 per month. While this was specifically about recovering SoLR costs, we will continue to review standing charges and consult broadly on any future changes.”