With household energy bills set to become more expensive this autumn Advice NI is offering expert guidance to consumers, to alleviate financial distress
Advice NI states that, due to a global increase in wholesale energy costs, some providers in Northern Ireland have already increased prices by over 10%, significantly impacting households that may already be struggling because of the pandemic. Others are set to increase prices by 9% from September 1st.
Household energy bills hike
Despite these changes, Sinéad Campbell, Advice NI’s Head of Money, Debt and Quality advises that there may be opportunity for some households to save money. She says: “The Coronavirus pandemic has negatively impacted household incomes across Northern Ireland, and this financial pressure will have been compounded by mortgage, loan and credit card Covid payment holidays having come to an end on July 31st. During 2020, our debt service dealt with over £28m of debt in more than 7,500 agreements and anticipates that this could become worse as 2021 progresses, particularly with energy price hikes creating an increased financial strain.
“The risk here is that as a result of these energy price hikes, consumers may feel they have to resort to accruing additional household debt to manage the change in their outgoings. With this in mind, we would like to take the opportunity to offer our advice, to ensure that people are being as savvy as they can be, with simple measures being the first port of call.”
She continues: “Comparison sites, such as The Consumer Council’s Price Comparison Tables, are a great tool for assessing the possibility of switching providers to get a better deal. This resource allows you to compare electricity, gas and Economy 7 tariffs across Northern Ireland
“Checking energy meters regularly and sharing the data with your provider is critical. You should also check your bills as soon as they arrive and let your supplier know if your circumstances at home change. If for any reason, you are concerned about paying your bills, you should contact your supplier. They may be able to advise you on the different payment options available, along with your eligibility for discount schemes and grants.
“When it comes to reducing your energy costs, there are many other practical but effective ways to save on energy consumption. For example, you could try turning off appliances, rather than leaving them on standby and similarly, washing clothes at a lower temperature will have a positive impact. Installing a smart thermostat or investing in energy efficient appliances can also make a substantial annual difference
Sinéad adds: “Whilst we appreciate that in the short-term, upgrading a boiler, installing double glazing or investing in higher quality insulation may not be possible for some households, setting these as a long-term goal, perhaps, by using any monies saved on bills, is a good idea. Many households don’t realise that heat loss, heat escaping through windows or not circulating efficiently throughout the house, adds to bills and means that you are paying for energy that you’re not using.
“Of course, all of these measures work best in conjunction with a carefully managed household budget, that takes income and expenditure into consideration.”
Sinéad concludes: ”Debt is a very real problem, particularly due to job losses throughout the pandemic, coupled with the general increase in our cost of living. We would urge anyone who feels that they are finding it difficult to manage financially to seek professional debt advice from our experts.
“It’s important that households across Northern Ireland know that they don’t have to face financial strain and debt alone.”
Advice NI and its Independent Advice Network of 69 member organisations across Northern Ireland offer a free, confidential and impartial service through a Freephone helpline on 0800 915 4604. The helpline operates 9am to 5pm, Monday – Friday. You can also browse Advice NI’s website for full details on the service.t.
