UK households using Calor for bottled gas are being warned of a new surcharge linked to the Iran war, which will add around £70 to annual costs. Calor, a supplier of liquefied petroleum gas (LPG) for heating and appliances, has introduced a 3.4p per litre 'volatility surcharge' from Monday, May 18. For a home with a standard 2,000 litre tank, this equates to an additional £70.
Calor explains the surcharge
A spokesperson for Calor said: 'We have kept the surcharge as low as possible. We understand that no one likes to hear about additional costs to services and we’ve done everything we can to delay this to protect customers.'
The surcharge is intended to cover increased costs caused by the ongoing conflict in Iran, which has affected global energy markets.
Price cap confusion among households
Research by Uswitch reveals that 63% of homes on standard tariffs do not realise that energy prices are expected to rise from July 1, while 17% mistakenly believe bills will fall. The price cap, which sets rates for standard tariff customers, is predicted to increase by £202 from July 1, taking the annual bill for an average home from £1,641 to £1,843.
Worryingly, a quarter of households on standard tariffs do not know what is happening to the price cap on July 1, and a fifth believe their energy costs will fall.
Expert advice from Uswitch
Ben Gallizzi, energy expert at Uswitch, said: 'Nearly 12 million households on standard tariffs are sleepwalking towards energy bill hikes, with their prices predicted to increase 12% in July. More worryingly, almost half of those on standard tariffs mistakenly believe they are on the best deal, despite the fact that the average home could save hundreds of pounds with a fixed deal.'
'Two-thirds of households say even a 10% increase in their energy bills would hit their finances, so now’s the time to act to protect yourself from higher costs. Take a moment to check online to see what deals are available to you. The cheapest fixed deals available at the moment are 13% less than the predicted July price cap, so we urge households to lock in lower rates while they’re available.'
