The regions contain the largest number of “energy crisis centers,” where communities are most at risk of severe economic hardship as a result of unaffordable energy costs, according to Friends of the Earth. An analysis by the environmental group identified almost 9,000 ‘hotspots’ across England and Wales where energy use is high and typical household income is below the national average. The report found that these neighborhoods housed a higher percentage of children than other areas and that people of color were also twice as likely to live in them. The analysis of 30 local authority jurisdictions found that Birmingham had the most areas where residents were at significant risk from rising energy prices, which escalated this year following Russia’s invasion of Ukraine. Energy regulator Ofgem is expected to announce the next industry price cap on Friday. The government is looking at ways to reduce household energy bills, particularly for vulnerable consumers. Without intervention, annual bills are expected to rise from £1,971 to £3,582 from October. Bills are expected to top £4,200 from January and remain high until 2023. Graphic The study found that 65% of Birmingham neighborhoods experienced difficulties related to their energy bills. Households can also suffer higher energy costs due to poor insulation and the study found that 59,410 homes in Birmingham needed attic insulation. More than 47,000 had no cavity wall insulation. In Bradford, 162 areas were deemed crisis hotspots, with bills estimated at £3,259 this autumn based on current energy consumption. In Cornwall, residents are expected to pay around a fifth of their wages for energy from October, with Cornwall Council last month warning residents not to switch off their fridges amid concerns that residents may do so for to save cash. He cited concerns about bacteria and said the move doesn’t save money, as the refrigerators end up using more energy to cool down when they’re back on. Sandwell in the West Midlands, County Durham in north-east England and Enfield in north London were also identified as areas where large numbers of residents have poor insulation and high bills. Subscribe to the Business Today daily email or follow Guardian Business on Twitter @BusinessDesk The average annual energy bill is more than 50% higher today than it was six months ago. Mike Childs, head of science, policy and research at Friends of the Earth, called for “substantial” financial help from the government for those most in need. He added: “And while it is vital, this is only a short-term solution. The highest priority of all is to fix the UK’s leaky, inefficient housing stock, otherwise handouts of cash will be required every year. “Using a free street-by-street program of energy efficiency measures, prioritizing the neighborhoods most in need, we can help quickly reduce bills, make homes warmer, and at the same time reduce global warming emissions.” . A separate study by the New Economics Foundation on behalf of Friends of the Earth showed that households could save between £490 and £720 each year on their bills through the rapid roll-out of a council-led insulation program and other energy saving measures.
