MID and north Wales residents are set to be hit hardest by expected rise in energy bills in April, new figures have revealed, with costs spiralling by more than £750 across the region in little more than a year due to an increase in the energy price cap.

Data shows Ceredigion will be the worst hit in Wales and second hardest across the whole of the UK.

Gwynedd, Powys and Carmarthenshire all feature in the UK top six for biggest expected rises, coming in fourth, fifth and sixth respectively.

Ceredigion and Gwynedd are already two of the worst hit areas in Wales for fuel poverty with 23 per cent of all households in Gwynedd and 21 per cent of all households in Ceredigion living in fuel poverty.

And warnings have been issued that if nothing is done to curb the effects of the price cap rise, more people in the counties will be plunged into fuel poverty and left choosing between heating and food as the cost of living rises.

In Ceredigion, the average cost of energy bills in April this year is expected to skyrocket by £834 - the equivalent of £69 a month – from £1,092 annually last March to £1,955.

Gwynedd will see an expected average increase of £803, taking bills to £1,819 a year, with Powys and Carmarthenshire seeing an average rise of just over £750 a year from April.

The numbers – which equate to a 79 per cent increase in little over a year - are significantly above the forecasted national average uplift in bills for each household of £598 per year, and are based on an expected rise once the new energy price cap comes into effect.

The data analysis by the Welsh Liberal Democrats – which compared the energy price cap level from the end of March 2021 when it was £1,042 – also showed that costs could rise again in the coming autumn when the cap is scheduled for another review. The cap, first introduced in 2019, is expected to rise by around 50 per cent from April due to sky-high wholesale gas prices.

The price cap sets a limit on the maximum amount suppliers can charge for each unit of gas and electricity you use, and sets a maximum daily standing charge.

It has risen twice since March 2021, leading to higher prices for residents and businesses.

Regulator Ofgem is due to announce the level of the increased price cap – which will be in place between April and September – on or around 7 February.

Welsh Liberal Democrat Leader and Mid and West Wales Senedd Member Jane Dodds said the figures for the expected cost rises “reveal that people in Ceredigion are facing eye-watering increases to their energy bills when many local residents are already deeply worried about their next heating bill landing on their doormats.”

“It is hardly surprising that it is people in rural areas are the worst affected,” she said.

“It is yet more evidence that the Conservatives and Welsh Labour are taking our rural communities for granted.”

Worst of energy bill increases still to come

The real impact of increasing energy prices is “not really hitting yet”, according to a Gwynedd foodbank, as they prepare for an increase in demand.

South Gwynedd Foodbank manager Dave Hooper said he expects increasing energy prices to lead to an increase in demand.

Dave said: “We are getting some folk that are struggling with their energy bills.

I don’t think we’ve seen the end of it yet, I’m thinking there’s likely to be more people going under as they continue to go up.

“My own supplier went bust, I don’t know what’s going to happen there. Are we going to suddenly find our bills going up by 50 percent? I really don’t know.

“In terms of the impact on foodbanks, there will be more people in a similar situation.

“We are seeing steady figures of demand at the moment, they’re not massively increasing at the moment.

“They have gone up a bit over the last month, but you expect that in the Christmas and post-Christmas period.

“But I don’t think they’ve gone up massively.”

Farmers hit by rising energy bills

Farmers are being faced with a “significant increase” in their energy bills, writes Alexandra Bánfi.

Those in the farming community who are renewing their energy contracts are “witnessing a significant increase” in costs, according to NFU group secretary for Montgomeryshire, Aled Griffiths.

Aled, who also owns a farm at Cwmlline near Machynlleth, spoke of a farmer who recently renewed his contract to find his energy prices had increased by 30 to 40 percent.

“Rising energy prices is very much a trend at the moment,” Aled said, “there’s a lot less energy companies now so there’s less competition in the market.

“From a local perspective, there’s an awful lot of our members, farmers, that have diversified and gone into enterprises that are a lot more energy dependent.

“Because of economic challenges, farmers have gone into poultry production when these kind of enterprises will have a much higher energy consumption than an extensive beef and sheep unit. Others have diversified into tourism, that’s going to take a lot of energy.”

He added: “Because caged hens are being legislated out, there’s an awfully big demand for free range egg production. A lot of farmers in mid Wales have gone into that as an enterprise because it was a good business venture to do, and fairly lucrative compared to beef and traditional farming.

“It’s not just affecting the electric we consume but also everything else that is reliant on electricity consumption, such as feed costs.”

He added: “As far as our farming system, there’s not been as much of a difference because I just keep sheep. I don’t really use as much electricity in comparison to dairy farms or any intensive enterprises.

“We have got a campsite without facilities. But now I’m putting a toilet and shower block in, I have to think carefully about where I get that energy from.”

FUW senior policy and communications officer Gareth Parry said: “Rising energy costs against a backdrop of potential income losses due to trade deals and future agricultural support policies will be a squeeze on farm profit margins.

“Farmers across Wales are already up against it when it comes to making a living and being faced with energy cost rises of up to £1,000 per month will simply add to this pressure. It is worth noting that every household will be affected by such rises and we urge the UK and Welsh Governments to act on these issues urgently.”

‘Perfect storm’ brewing for businesses

AN Aberystwyth business owner said the difficulties faced by the hospitality industry extends beyond rising energy prices, as the “price of everything” continues to increase.

Jonathan Foligno, who owns Express cafe and fish and chip shop in Aberystwyth, told the Cambrian News how increasing energy prices have played a part in the perfect storm.

“This time last year, I invested heavily in a new fish and chip range which is supposed to cut my gas and electricity in half,” Jonathan said.

“That’s costing me monthly instalments, and after five years I was meant to be in a better position. But now I’m in a worse position, it’s definitely not saving me 50 percent now – nowhere near.”

While Jonathan has been forced to increase prices in the cafe, it is still not enough to keep up with rate of rising cost of energy, fuel, products, and wages.

“It annoys me, people always say to me ‘just pass it on to the customers’, but you can’t put it up at that rate. I’ve just put my prices up in the shop because I’ve had to.

“A breakfast, for instance has gone up 50p, but if I was to put it up to what it actually should be, it would be £1.50 more for a breakfast. It becomes increasingly hard to catch up because I can’t keep up with the level its going up. Nothing is coming down in price, and nothing is staying the same.”

“The price of a cup of coffee has only gone up 10p and I’m getting complaints.”

In 2018, Express took on a meals on wheels scheme, which provides a meal and a pudding for an elderly person at £5.50. At the outset, they were providing 10 meals a day. This increased to 30 to 40 meals during the lockdown, and has now gone down to about 25 to 30 meals a day.

“We do a lot of meals on wheels for the elderly. Now with energy bills going up, fuel costs going up massively, the wages for delivery drivers and for the staff in the kitchen, it’s getting to the point that it’s going to be unprofitable.

“But the last thing we want to do to the elderly people who rely on us is put the prices up.

“If we get to about 35 or 40 meals per day, that’s when we would have to invest in another van. That becomes a difficult choice; we don’t want to turn people down but it might get to the point when we have to.”