- In April, energy prices will be going up by 54%.
- This will effect EVERYONE unless you are on a fixed tariff. And it will effect you when your tariff ends.
- In October, prices will go up AGAIN! We may see our bills at twice as much as they were last year. An average UK energy bill of £1000 a year could go up to £3000.
- The number of homes in energy poverty is expected to double.
- The war in Ukraine is causing gas and oil prices to go up still further
The market works in such a way that electricity prices are still linked to gas and oil prices. So as the Global gas prices are very high (and gas is used to make much of our power), electricity prices are shooting up too. 2021 was also an unusually poor year for solar and wind power.
How can I prepare?
- Make sure you send a meter reading to your energy company, otherwise you risk getting a catch up bill in the future at the more expensive price. This is because companies estimate how much energy you use if they don’t get meter readings and they may end up underestimating your usage, which means you’ll owe them money.
- Ask your energy supplier for a SMART meter as they are really useful at this time as they show you how much you have spent each day. They also help you identify appliances which are expensive to run.
- Look at your bill – do you have an Economy 7 tariff with different rates for day and night? If you don’t use a lot of electricity during the night, then ask your supplier whether it would save you money to switch to a single rate tariff.
- If you don’t want a smart meter, we can provide you with a home electricity monitor for free.
What support is available?
Updated June 2022
All homes will automatically receive a £400 energy bill payment or top up credit in October. This is now a grant and will not have to be paid back.
In April -June 2022, all households who pay council tax and live in band A-D will receive a £150 energy bill council tax rebate. This is paid automatically into bank accounts for people who pay by Direct Debit. For people exempt from council tax or who pay when they get the bill, they will receive a letter from the council advising how to apply for the payment. Please note you are still eligible for this payment even if you are exempt from paying some or all of your council tax!
£650 “cost of living payment” automatic payment to those receiving means tested welfare benefits. Two payments of £325 will be paid directly into bank accounts in July and the Autumn.
£300 “pensioner cost of living payment” Payment will come as a top-up to annual Winter Fuel Payments in November/December.
£150 “disability cost of living payment” for people receiving disability benefits. Paid in September.
Extra financial support will be available to people on means tested benefits through the council’s Household Support Fund. This has now opened. We recommend applying straight away as the money will go quickly!
Apply for the £150 Warm Home Discount with your energy company. The eligibility criteria is likely to include more people this year so make sure you check if you’re eligible, even if you weren’t in previous years.
What can I do?
The best way to reduce the impact of the rising prices is to use less energy in the first place. Gas and electricity are expensive and we are all going to need to be more cautious.
This can be accomplished with small, free or inexpensive changes and bigger, more involved investments.
- A healthy temperature for your home is between 18-21°C. Every degree you turn down your thermostat will save approximately £120 from April.
- Things that use heat are expensive. Using these things for a shorter time or at a lower temperature can help, like having shorter showers and washing at lower temperatures.
- Make sure your immersion heater isn’t on all the time and that it is covered with an insulation jacket.
Scroll through these 16 simple but effective energy and money saving tips.
The Big Stuff
Now for the more significant energy bill savings. With the energy price rises, there has never been a better time to invest in energy efficiency measures such as insulation. Since the energy prices will be rising so much, the payback time for these measures will be much quicker.
For example, if you install loft insulation, it will cost around £300. If you did this, you could save an average of £210 a year from April, making the payback time between 1-2 years.
Scroll through our list of energy efficiency measures below to find out how much you could save.
We have access to funding to help you to install these energy efficiency measures. Find out more here.
Make your own power!
Another investment that would save money in the long run would be to switch to local sources of renewable energy. This will make us less dependent on imports of fossil fuels and give us more control over energy prices. If we can turn our homes into mini power stations, then this will have long term positive consequences. Solar panels on your roof and local solar or wind farms are great for supplying cheap energy for individual homes or communities.
Finally – talk to us!
Our energy advice service can help you with everything you need to save money and energy, including support to talk to your supplier, energy debts and accessing funding to make your home more energy efficient.
To book a telephone appointment contact email@example.com or call 01424 390062