The energy price cap in Britain has risen by 1.2% effective January 1, 2024, increasing the average annual household energy bill from £1,717 to £1,738. This seemingly modest increase follows a more substantial 10% rise in October 2023, adding £149 to the average bill. With colder weather and increased heating usage during the winter months, households can expect their energy expenditure to rise further. Moreover, projections indicate a potential 3% increase in the price cap by April 2024, potentially raising average bills to £1,785. It’s crucial to remember that the price cap only limits the price per unit of energy and the standing charge, not the total bill. Therefore, households with higher-than-average energy consumption will likely face higher bills. Current rates are 24.86p per kWh for electricity with a 60.97p daily standing charge, and 6.35p per kWh for gas with a 31.65p daily standing charge.
For those concerned about rising energy costs, several strategies can help mitigate expenses. Immediate actions include turning off appliances at the wall to save on standby power consumption, which can save around £45 annually. Draught-proofing homes by sealing gaps around windows, doors, and chimneys can save approximately £80 a year, though professional draught-proofing can cost around £250 upfront. Switching to LED light bulbs from halogen bulbs can also yield savings of up to £4 per bulb annually, and simply turning off lights in unoccupied rooms can contribute to lower bills. In the kitchen, using a slow cooker instead of an oven, avoiding overfilling the kettle, and fitting a tap aerator can all result in noticeable savings.
Further savings can be achieved through mindful laundry practices. Washing clothes at 30 degrees Celsius and reducing washing machine usage by one cycle per week can save around £24 annually. Opting for air drying instead of a tumble dryer can save an average household approximately £50 a year. Similarly, reducing bath frequency and shortening shower times to four minutes can generate savings on water heating costs. Calculating your energy bill requires knowing your unit rate for gas and electricity (in p/kWh), the standing charge for each fuel, and your annual energy usage from a previous bill. By multiplying your usage by the unit rate and adding the standing charge multiplied by 365, you can determine your annual cost for each fuel.
Longer-term investments in home insulation can significantly reduce energy consumption and costs. Loft, cavity wall, solid wall, and floor insulation can lead to substantial annual savings, ranging from £40 to £320 depending on the type of insulation. While insulation can be an expensive upfront cost, the long-term savings and increased energy efficiency make it a worthwhile investment. Various schemes and grants are available to assist low-income households with insulation costs, and contacting your energy supplier can provide information on available support.
Government assistance programs can also help alleviate the burden of energy costs. The Warm Homes Discount Scheme offers a £150 discount on energy bills for eligible low-income households and those with high energy needs. Winter Fuel Payments provide between £200 and £300 towards energy bills for eligible pensioners. Cold Weather Payments of £25 are available for each seven-day period of sub-zero temperatures for those receiving qualifying benefits. It’s important to verify eligibility for these benefits to ensure you’re receiving all available support. Online calculators can help determine benefit eligibility and provide guidance on managing finances.
In addition to these measures, simple behavioral changes can contribute to energy savings. Lowering the thermostat by just one degree can significantly reduce energy usage and costs, particularly when combined with wearing warmer clothing indoors. Programmable thermostats, which allow for scheduled heating adjustments, and thermostatic radiator valves can further optimize heating efficiency. By implementing these strategies, households can proactively manage their energy consumption and mitigate the impact of rising energy prices. For personalized advice and support, contacting your energy supplier or seeking guidance from financial advice services is recommended. Furthermore, sharing tips and experiences with others can foster a collective effort to reduce energy consumption and costs.
