Energy Price Increase 2021: How to Avoid Rising Energy Costs

We have seen the media reports and received the emails notifying us of the energy price increase. Ofgem recently announced a record high 12% increase to the energy price cap. The increase will see energy bills soar by at least £139, and impact half of the UK population. With the price rise ultimately being out of our control; many are looking for ways to reduce their energy consumption to avoid high energy costs.

Energy Price Increase

The energy price cap will be implemented from the 1^st of October 2021. Unfortunately, approximately 15 million families will see the effects of this on their energy bills. According to Britain’s independent energy regulator: Ofgem. The cause of the raising price cap is due to a 50% increase in wholesale fuels costs as the world resurfaces from lockdown.

One of Ofgem’s recommend ways to avoid having to pay higher energy bills is to switch providers. Shopping around and switching energy providers could save households hundreds of pounds annually on their energy bills.

Although, switching providers does not cushion the arrival of the energy price increase. Many households are still struggling financially due to the pandemic, and the increase will bring with it several negatives, one of the most worrying being fuel poverty. However, vulnerable households can access available support like that of payment plans/breaks, the Winter Fuel Payment and Warm Home Discount by contacting their suppliers.

As there is little we can do to control the increases; below we explore a few ways on how homes and businesses can avoid paying high energy bills.

Click the link to see Ofgem’s publication on the price cap

Energy Efficiency

Reducing our energy consumption is a great way to avoid high energy bills. The energy efficiency of our lighting and appliances plays a big part in energy usage. Replacing your traditional incandescent light bulbs to LED can reduce energy bills effortlessly. Not only do LED light bulbs have a much longer lifespan. They also use approximately 90% less energy. Likewise, by upgrading low efficient appliances to energy-saving models with high efficiency, you could save around £200 annually on energy bills.

Solar Power

If you looking to drastically reduce or better yet, completely avoid energy bills, then installing solar panels is the answer. With solar panels you can power your home and/or business independently with free, renewable solar energy. Solar panels are also great for off-grid locations where connecting to the national grid is merely impossible or extremely pricey. They are also great for the environment as they release no CO2 emissions, offer financial incentive, and yes, it’s true, solar panels work all year round.

Double Glaze and Insulate

There is no denying that heating in the UK is a must, particularly during the winter months. Sealing any drafts and preventing heat from escaping through the windows, walls, attic, ducts, or roof, is the best way to stop our heating systems from working overtime and charging us for it. When you improve your homes and/or businesses ability to hold temperature you can avoid those extremely high energy bills. An average home can save up to 15% on heating/cooling costs by adding effective insulation. It’s one of the most cost-effective and sensible ways to keep your property warmer in winter and cooler in summer.

Turn it off

Whether it’s a standby appliance or a light left on in a room you are no longer in, turn it off. Research from the Energy Saving Trust reports that 9-16% of the electricity consumed in homes is used to power appliances on standby mode. This means that on the average annual UK electric bill of £700; as much as £112, is spent on achieving nothing really. Moreover, it has been found that the UK wastes £4.4 billion annually from lights being left on in homes.

Low Carbon Heating

With gas prices in particular being the driving factor of the energy price increase, and 85% of homes in the UK relying on gas; upgrading our heating systems to something more efficient is essential. Additionally, as the world is moving away from fossil fuels, switching to low carbon heating systems is the way forward.

The most efficient, low carbon heating system available is a heat pump. They have an efficiency between 200%-600%, a lifespan of approximately 20-25 years, are of low maintenance, offer financial incentive through RHI and can run completely independently. Also, thanks to their remarkable efficiency, saving on those soaring energy bill tariffs is a given.

Follow the link to learn more about Air Source Heat Pumps (ASHP) and Ground Source Heat Pumps (GSHP).

Conclusion

In conclusion, there is never a good time for an energy price increase; and unfortunately the UK energy market is still heavily dominated by the price of fossil fuels which it buys from the fluctuating global marketplace. The best way for the UK to avoid these forever rising energy costs and eliminate fuel poverty is to upgrade their national grid to 100% renewable energy.

As it may take some time for this to become a reality; homes and businesses may look to begin the renewable upgrade independently; which inevitably may result in them avoiding all possible energy bills. When we power and heat our properties with renewable energy not only do we save big on energy bills; but we also open doors to a wonderfully long list of benefits. From energy security, improved efficiency, financial incentive to even taking a big leap forward in the fight against climate change due to dramatically reduced carbon emissions.

For more information on upgrading to renewable energy technologies Contact us today.

DID YOU KNOW?

Eligible homeowners, private landlords, social landlords and self-builders throughout the UK who have renewable energy heating systems, can apply to receive tax free payments from the government for seven years through the Renewable Heat Incentive. With payments of +-£1300 per year, many homeowners see themselves making back a large portion – if not all – of their initial investment, whilst future-proofing their property and protecting the planet.

Click here for more information on The Renewable Heat Incentive (RHI).