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- Thousands of UK households have pledged to not pay their energy bills from 1 October.
- The move aims to pressurize the energy companies and the Government to step up and resolve the ongoing crisis.
- The average electricity and gas bill to be paid by a UK household is likely to hit £3,358 in October, as per Cornwall Insight.
UK households have been facing soaring energy bills over the past few months, and the situation is aggravating further. As a measure of retaliation against the rising energy prices, thousands of households have pledged to not pay their energy bills from 1 October. The skyrocketing prices have led to a civil disobedience movement by people, which aims to pressurize the energy companies to step up and resolve the ongoing crisis.
Retaliation by the people
Energy prices had already been rising after the easing of the Covid-related restriction led to a spike in energy demand across industries, and the recent Russia-Ukraine war created further energy shortage due sanctions by other nations on Russian oil and gas and supply cuts by Russia. Rising energy bills are pushing millions of Brits towards fuel poverty, forcing them to choose between staying warm and filling their bellies over the coming winter.
In October, UK energy regulator Ofgem is expected to raise the energy price cap further. From 1 October, higher energy bills would be seen by millions in England, Scotland, and Wales. As per the consultancy Cornwall Insight, the average electricity and gas bill to be paid by a UK household is likely to hit £3,358 in October. In contrast, the average household energy bills in October last year stood at just £1,400.
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To battle the rising bills, an anonymous group known as Don’t Pay UK has started a movement, gathering people and encouraging them to withdraw their direct debit payments from 1 October, when the energy price cap will rise. The demand of the group is to bring down energy prices to affordable levels and help Brits in tackling the spiraling cost-of-living squeeze.
Repercussions of the movement
The Government has criticized the movement as ignoring the energy bills would in turn exacerbate the energy crisis. The Government believes that the movement is promoting irresponsibility among people, and it will eventually lift the prices up for everybody else while impacting their personal credit ratings, making it more difficult for them to borrow later.
The issue of soaring energy costs isn’t just limited to the UK, but the entire world. The UK Government has said that even though controlling the global energy prices is not possible for them, or any other Government for that matter, they have still stepped up to help households by providing them with support funds worth £37bn, which include the discount of £400 on energy bills, and a direct support of £1,200 for the economically weaker households which are more susceptible to the inflationary crisis.
People are being warned by the debt and financial experts about the repercussions they will face by not paying their energy bills. These include a rise in debt, additional charges, and the probability of being given a prepayment meter. There is also a slight chance that the supplier may cut off their electricity, but this may happen in an extremely rare situation. Despite all these challenges, people are willing to get down on the streets and protest against the rising bills by carrying out a strike if immediate steps aren’t taken by the Government. People believe that this is the only way left to wake up the Government and energy firms and push them to act instantly.
Ahead of the rough winter, households can try and save money on energy bills by doing simple things, such as turning down the temperature of their thermostats by a degree, taking shorter showers, and switching off lights and electrical appliances when not in use. While households can cut back and save money, investors can even grow money by buying the shares of energy companies which are doing well amid the rising prices. Kalkine Media® here suggests you the stocks which are presently doing well amidst the ongoing situation.
EnQuest plc (LON: ENQ)
Independent petroleum producing firm’s shares on Monday were witnessing a drop by 2.70% at 12:40 PM (GMT+1) and were trading at GBX 27.00. With a P/E ratio of 1.69, the market cap of the firm presently stands at £523.34 million. The EPS of ENQ stood at 0.22 as of 8 August. The ENQ has offered its shareholders positive returns over the past one-year and on YTD basis of ’s returns 44.67% and 12.84%, respectively.
Energean plc (LON: ENOG)
Global hydrocarbon producer ENOG rallied by 0.67% at 12:47 PM (GMT+1) on Monday and were trading at GBX 1,196.00. The Energean Plc’s market cap stood at £2,115.12 million with its EPS at -0.54 as of 8 August. However, its YTD and one-year returns have been favourable at 40.12% and 74.51%, respectively.
Shell plc (LON: SHEL)
The shares of Shell plc went up by 0.51% at 12:54 PM (GMT+1) on Monday and were trading at GBX 2,161.00. With a P/E ratio of 5.46, the market cap of the oil and gas making firm stood at £157,565.44 million as on 8 August. SHEL has offered its investors positive one-year and YTD returns of 45.75% and 33.28% respectively.
Hunting plc (LON: HTG)
The shares of the energy equipment & services contractor, Hunting plc, plummeted by 0.70% at 12:57 PM (GMT+1) on Monday and were trading at GBX 212.00. The market cap of the firm presently stands at £352.15 million. However, the returns given by the company to its shareholders on year-to-date and one-year basis are also positive, at 25.30% and 1.44%, respectively.
BP plc (LON: BP.)
The shares of the international oil supermajor, BP plc, rose by 0.94% at 1:03 PM (GMT+1) on Monday and were trading at GBX 415.00. The market cap of the firm presently stands at £78,172.63 million and it is an FTSE 100 constituent. The returns given by the company to its shareholders on year-to-date and one-year basis are also positive, at 25.70% and 35.12%, respectively.
Diversified Energy Company plc (LON: DEC)
Diversified Energy Company plc on Monday, rallied by 1.84% at 1:10 PM and were trading at GBX 127.20. The market cap of DEC stood at £1,062.85 million and it is an FTSE 250 constituent as of 8 August. The EPS of the company stood at negative -0.03. However, the returns given by the company to its shareholders on year-to-date and one-year basis are also positive, at 21.75% and 23.89%, respectively.
Capricorn Energy plc (LON: CNE)
Capricorn Energy plc was witnessing a positive upswing as it rallied by 0.37% at 2:43 PM (GMT+1) and were trading at GBX 220.20 as of 8 August. CNE boasted a market cap of £691.27 million with an EPS of 1.81. The returns given by the company to its shareholders on year-to-date and one-year basis are also positive, at 16.94% and 30.92%, respectively.
Capital Limited (LON: CAPD)
The shares of Capital Limited were trading at GBX 93.80 at 2:25 PM (GMT+1) on 8 August. CAPD boasted of a market cap of £179.06 million with an EPS of 0.18. The returns given by the company to its shareholders on year-to-date and one-year basis are also positive, at 11.40% and 15.80%, respectively.
Tullow Oil plc (LON: TLW)
Tullow Oil plc which enjoyed a market cap of £749.43 million was witnessing a rally by 0.38% at 2:47 PM (GMT+1) on Monday. TLW at the time of writing were trading at GBX 51.90. The Africa and South America focused energy exploration firm gave its investors positive one-year and YTD returns of 9.08% and 11.36% respectively.
Harbour Energy plc (LON: HBR)
The shares of the greatest North Sea oil and gas operating business, Harbour Energy plc, went down by 0.11% at 2:51 PM (GMT+1) on Monday and were trading at GBX 361.50. With a P/E ratio of 35.89, the market cap of the firm presently stands at £3,241.29 million and it is an FTSE 250 constituent. The returns given by the company to its shareholders on year-to-date and one-year basis are also positive, at 2.29% and 3.61%, respectively.
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