Why Fuel Poor Households Should Switch Electricity Suppliers
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No matter how much you make, you can be considered a fuel poor household if you spend over ten percent of your income each year on fuel costs. Recent announcements by the government have been proposed to change the definition, but for now, the expectation is that no household should have to pay so much in fuel costs.If your household falls into the millions of UK households that are considered fuel poor (4.5 million households were counted in 2011 alone), there are several measures you can take. The government is focusing on energy efficiency initiatives and partnering with energy suppliers to implement initiatives where the supplier is partially or wholly responsible for improving efficiency. On your own time, however, you can look into whether it's worth it to switch electricity suppliers and decrease the amount you spend on energy.
Who Is Going To Be In Fuel Poverty Now?
After consultations in 2012, the UK government has decided to redefine fuel poverty. The 2013 Annual Report on Fuel Poverty Statistics indicates that a more accurate measure of fuel poverty is whether a household has ?required fuel costs that are above average? and, if they were to spend the amount necessary to keep their household heated to 21 degrees for the main living area and 18 degrees in other occupied rooms, ?they would be left with a residual income below the official poverty line?. This new definition will change some of the assistance currently available to households that earn more and don't spend enough to bring their income below the poverty line.
Warm Home Discounts May Change
If you are currently eligible for Warm Home discounts, this may change if you are found to be no longer in fuel poverty based on the new guidelines. Does this apply to you? If so, it's best to take action now to reduce your fuel costs however possible before suppliers begin to change the support they offer. If your supplier will no longer offer you energy rebates, consider looking at a supplier who defines the ?broader group? of people who may be at risk of fuel poverty. It's easy to switch electricity providers today and you don't even have to contact the old company ? the new one will do that for you.
Look At All Suppliers On Offer To You.
Your area may limit you when it comes to choosing which supplier you want to receive energy from, but try to choose the supplier most likely to help you. Some suppliers to look at include: Atlantic, British Gas or Scottish Gas, EDF Energy, E.ON, Ebico, First Utility, M&S Energy, npower, Sainsbury?s Energy, Scottish Hydro, ScottishPower, Southern Electric, SSE, SWALEC, or Utility Warehouse. Each of these suppliers is listed as participating in the Warm Home discount scheme, and they all have different requirements for who is eligible to receive discounts. Chances are good that at least one provider will continue to support you as a household in or at risk of fuel poverty.
Consider Suppliers Who Charge Less
Using an online energy supplier comparison service is a great idea. This allows you to see how much you would spend if you switched to another supplier or tariff. You will need to input your postcode and email address in order to see what is available to you, but you will be easily able to compare terms and conditions without having to do extensive research immediately. If you can find a supplier who will not charge you as much for using existing levels of energy, you will be able to pay less for the same service and perhaps get out of fuel poverty.
Fuel poverty can be a financial trap given the rising cost of fuel over the past decade. Taking efforts now to get out of fuel poverty is a wise idea, particularly given the upcoming redefinition of fuel poverty. You may be one of the lucky households who will be included for the first time in rebate and discount schemes, in which case you can look forward to support and lower prices, or you may be a currently fuel poor household who will be excluded from support in the future. If you fall into the latter camp, take action now to compare and switch suppliers so you can find one that either charges you less for the same amount of energy or includes you in the ?broader group? section of their Warm Home discount program.
About author: Laura Ginn
?Laura Ginn understands how some people feel trapped by fuel poverty and how they may feel restricted and unable to switch electricity. uSwitch Energy ? gas and electricity prices give you the information you need to make an informed choice.
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