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Pensioner's shock at big energy deal rise

Document Cited in Related
Vincent
Published date21 January 2022
Publication titleStirling Observer
Graeme Shepherd, who lives in a detached house in the town's Aveland Park Road, is currently on a fixed rate dual fuel contract of £185 per month which is due to come to an end next month

His supplier Octopus Energy offered him a new one-year fixed rate, dual tariff electricity and gas, monthly deal of £573.82 as a loyal customer.

The provider's standard 12-month fixed rate is £699.33.

Energy companies have pointed out in recent months that the hike in wholesale gas and electricity prices is set to continue following pressures on supplies.

In late December a new record was reached when wholesale gas prices climbed to 450p per therm.

A new price cap, setting the maximum rate that energy companies can charge for a default tariff, to be announced next month, will come into effect in April. It currently stands at £1277, but is expected to rise, with some in the industry predicting it will hit £2000 by October.

Seventy-year-old Mr Shepherd has been a customer with renewable energy specialist Octopus Energy for at least the last four years.

He also runs the Ashwood House Apartments self-catering accommodation at his home which comprises two flats.

The retired seafarer told the Observer he was alarmed at the price hike.

He said: "I knew prices would rise, but I didn't expect it to be quite so high. It came as a big shock to be honest.

"I am fortunate in that I have a good pension and will be able to pay these increased fuel bills, although I will still have to cut down on gas and electricity use and will shop around for a better deal if I can, but having looked at a comparison website, Scottish Power's dual fuel tariff is almost the same at £575 per month.

"It doesn't matter how small or large your home, these bills are coming.

"There will be many who simply cannot afford to pay heating bills which have doubled, or in my case more than trebled.

"I want people to know that this is what is going to happen in the months ahead. Many will not be able to cope financially with such a rise in energy prices.

"It's very worrying." An Octopus Energy spokesperson said this week: "Energy prices are higher than they've ever been...

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