Nov 2023
50% of Brits turned their heating on by the end of September 2022
Last year around 50% of customers had already turned on their heating by the end of September 2022, with a quarter of people holding out until Halloween. But this year, the story appears to be different. A combination of factors, including warmer weather and economic uncertainties, are prompting people to exercise caution before cranking up the thermostat.
The weather plays a role in determining when people decide to turn on their heating. We expect 50% of people to turn their heating on by the time it reaches roughly 13 degrees outside. The average temperature during the week starting the 2nd of October was 14.5 degrees, dropping to 11.7 degrees the week starting 9th of October. This year warmer temperatures have extended into autumn, providing households with a precious window of opportunity to delay turning their heating on. For many, the prospect of saving money on energy bills while enjoying a mild autumn is a welcome one. Although a worrying one due to the climate crisis and what it says about global warming.
Apart from weather conditions, it appears that people are more cautious about turning on their heating this year. Recent polling data reveals that 56% of people are significantly more worried about their winter energy bills compared to the previous year. This heightened concern can be attributed to a mix of factors including rising energy prices (46%) and the ongoing cost of living crisis (65%). Many vulnerable households are facing a prolonged period of high prices compounded by wider cost of living pressures that will leave millions struggling unless action is taken.
At OVO we have stepped up our commitment to support vulnerable customers facing the challenges of high energy prices. Earlier this year, we rolled out a £40m package of support aimed at providing financial and practical assistance to those in need. OVO’s Customer Support package, which began in October, is designed to provide a lifeline to eligible customers who find themselves struggling.
This investment ensures the continuation of OVO’s suspension of pre-payment meter warrant activity until March 2024. It also includes energy top-up credit and temporary payment reductions, all aimed at easing the financial burden for eligible customers.
As well as financial aid, OVO is committed to helping households stay warm and reduce energy consumption. As part of the winter support package, OVO is offering free energy-saving products valued at £1 million. These products include electric blankets and mattress toppers to keep you warm, and boiler services to ensure your heating system is efficient, LED bulbs to reduce energy consumption, and SMART sockets for better control over your electrical devices. These products not only make homes more comfortable but will also contribute to lowering energy bills.
One often overlooked component of energy bills is the standing charge, a fixed fee that every household must pay regardless of their energy usage. It particularly hits low-income households the hardest who may make changes to be more energy efficient, but are still paying the same charge as wealthy and high use households. In 2023, this standing charge is set to cost households around £300 a year. A recent survey has revealed that 7 in 10 people in the UK (72%) think the standing charge is unfair and three quarters (76%) agree that vulnerable households should not be charged. This sentiment underscores the need for reform in the current system. The current approach does not consider the diverse financial circumstances of households across the country.
We believe that a fairer, more compassionate approach to energy billing is not only possible but essential. At OVO, we are calling on the Government to remove the standing charge for vulnerable households this winter and create a more equitable energy system. OVO has not passed on the permitted standing charge increase to its customers. We have the opportunity to make a difference in the lives of those facing the challenges of high energy costs this winter, and to do this, the Government needs to take action.
Read our data dashboard to find out more. Find out more about how OVO is helping its customers this winter here.