“Surge pricing” on energy bills could hit millions of households

10 February 2022, 12:32 | Updated: 10 February 2022, 12:36

Energy bills
“Surge pricing” on energy bills could change millions of household bills (Alamy: Picture). Picture: Alamy

By Liam Gould

Millions of households in the UK could be offered tariffs on their energy bills with prices that update every half hour.

The change will see people paying more during peak times and less at quieter times throughout the year.

Three of Britain’s largest energy providers - EDF, Octopus and Scottish Power - have gotten behind the large-scale move.

It has been compared to an ‘Uber-style’ model that sees the taxi service charge a higher fee at busier times.

Energy regulator Ofgem says it will give the opportunity for customers to switch their energy usage down at peak times, like the evenings where they’re charged more.

They say this will save 11 million households money on their energy spending to those who opt in.

Time of use tariffs will be available to any customer with a smart meter. Currently, most customers are on tariffs that offer a flat rate for usage at any time.

Free smart meters have been introduced around the country to help households monitor and adjust their energy spend.

But, there are concerns that the changes will make tariffs too complex and become more expensive for households.

Read more: Cost of living crisis: How will the energy price cap rise affect you?

Energy suppliers EDF, Octopus and Scottish Power are among those that have backed the change.

Ofgem has requested suppliers bring in the changes to all smart meters by 2025.

An Ofgem spokesperson said: “This major system upgrade is a significant milestone on Britain’s path to net zero.

“It will enable a more efficient, flexible and greener energy system which will save billions of pounds per year on all consumers’ energy bills.”

This comes during an ongoing cost of living crisis in the UK.

Read more: Cost of living crisis: Most businesses say they'll hike prices as 1 in 20 consider closing

The energy bill price cap will rise by 54% in April - meaning a £693 per year increase for millions of households.

It also comes after pressure to revoke the controversial 1.25 percentage point rise in National Insurance was denied by Chancellor Rishi Sunak.

The annual bill for a typical household is due to go up from £1,277 to £1,971 from April.

But, Ofgem have ensured that “those in vulnerable circumstances remain protected.”

More Latest News

See more More Latest News

James O'Brien caller fears her Ukrainian refugee is 'an economic migrant'

Government 'played on our emotions' to host Ukrainian refugees, says James O'Brien caller

Thunder and lightning will be possible on Monday following the four-day heatwave.

Thunderstorm warning as heavy rain to batter UK in abrupt end to scorching four-day heatwave

Police have arrested a man in his 20s

Man, 34, dies after being mauled to death by dog in Hampshire park as owner arrested

Breaking
The River Thames at Shepperton in Surrey.

Body pulled from River Thames in search for man who disappeared under water

Prince Andrew to keep taxpayer-funded bodyguards despite moving away from royal duties

Prince Andrew to keep taxpayer funded bodyguards after security review following Epstein scandal

The Kitchen @ London House on the Isle of Wight

'Arrogant holier than thou' vegans slammed by restaurant after backlash over new menu

Lincolnshire Police released a series of photos of Lilia

'We had four corners and now one is gone': Lilia Valutyte's mother pays tribute to girl, 9, stabbed in Boston

Donald Trump's Mar-a-Lago estate was searched by the FBI on Monday.

FBI 'searched Donald Trump's estate for classified nuclear documents’

The UK will host Eurovision after coming runners up to Ukraine in 2022

Seven cities make shortlist ahead of UK's Eurovision song contest

Dr Coffey defended Liz Truss from Tony Blair's institute's criticisms

Truss supporter defends tax plan after Tony Blair says it would only save poorest 76p but richest get £93

The two attacks allegedly took place on Cheetham Hill Road.

Man, 25, arrested after two women 'raped' with one suffering 'significant injuries' in Manchester

The economy shrank by 0.1% between April and June.

Economy shrinks by 0.1% as inflation battle rages and recession fears grow

The advert sparked an online backlash

Paint advert sparks 'sexism' backlash but company claims it's just a bit of fun

Drought status has been declared for swathes of England as dry and hot weather continues

Water could be rationed as drought declared across parts of England and tankers arrive in first villages

Anne Heche is "not expected to survive" a horror crash in Los Angeles, her family has said.

US actress Anne Heche 'not expected to survive' horror crash that engulfed car in flames, says devastated family

Liz Truss has said she is against a windfall tax on energy companies

Truss vows no windfall tax for energy firms as Boris accused of doing nothing to help families pay soaring bills