Announced by the energy regulator Ofgem, next year will see a rise in the energy price cap. This means energy suppliers can charge 5% on top of a household’s current energy bill. This will leave many families in the UK in a worse position than they already are.
What is the UK Energy Price Cap?
From January 1st to March 31st, 2024, households paying for gas and electricity by direct debit will have a cap of £1928.
Due to wholesale energy prices rising and the production of liquefied natural gas these fluctuations in price have become a trend. Therefore, people in the country are left in significant financial situations. Moreover, a higher number of families are sourcing ways in which they can save money through different means such as renewable energy sources.
The unfortunate timing can only make things worse as we are now in the coldest part of the year when people will be at home celebrating Christmas and keeping their houses warm well into the new year.
When Will the Price of Energy Go Down in the UK?
We can’t predict energy bill decreases precisely, but it’s good to keep specific dates in mind when they usually announce potential price hikes:
- 1st April to 30th June 2024 – due to be announced 23rd February
- 1st July to 30th September 2024 – due to be announced 28th May
- 1st October to 30th December 2024 – due to be announced on 27th August
What Can You Do to Save on Your Energy Bills?
- Insulating your home can be an effective way of saving energy bills by reducing the amount of heat loss in your home. Loft insulation, cavity wall, solid wall, and underfloor are all methods available under the Great British Insulation Scheme.
- Implementing renewable energy methods such as solar power, where you can even store unused energy, or heat pumps which will heat your home for less money.
- Installing a smart thermostat allows you to track spending and consciously control your home energy use.
- Everyday appliances can impact your energy bills. If you swap for modern and energy-efficient appliances, you will begin to see savings on your energy costs.
Energy Saving Grants
The Free Heating Scheme can assist you in identifying available grants. The ECO4 scheme is a government-backed scheme that aims to improve the energy efficiency of homes in the UK. The country’s largest companies fund the scheme, aiming to help homes without a mains gas supply or those with a non-condensing boiler.
The Free Heating Scheme can assist you in identifying available grants and help you check eligibility. You can see a breakdown of the schemes below;
A government back scheme to improve energy efficiency of homes in the UK. The biggest energy suppliers in the country are involved in this grant which aims to improve homes that are not connected to a mains gas supply OR are fitted with a non-condensing boiler.
The Great British Insulation Scheme
An approved assessor will visit your home, assess its viability, and then recommend suitable insulation methods.
Replace your gas boiler with a renewable energy source which will be in the form of a voucher. Options include; air-source heat pumps, ground source heat pumps, and biomass boilers.