Table of Contents
It is impossible not to notice that energy bills in the UK seem to be steadily rising. Why is this happening, and what can you do to offset these costs? Read on to answer these questions and more.
How Much Are UK Energy Costs Increasing?
On Friday, 26 August 2022, the United Kingdom was informed there was to be an increase in the energy cap for energy consumption. The energy cap is the highest amount of money that energy suppliers are permitted to charge a household for every energy unit that is consumed. With this new price cap raise, the average household can expect to pay about £2,500 annually.
This change has been all over the news, with prices expected to increase even further during the assessments every three months. Citizens are concerned about just what that means and how much they can expect to be paying in the future. On average, households can expect the trend of rising price caps in electricity to increase from 28p per kilowatt to 52p in October.
By the time this cap occurs, the price for annual energy consumption is expected to rise to around £3,549. Following the assessments to come, it is projected that households could be paying £6,000 in April 2023.
Update 8 September 2022
An announcement buy the UK government on the 8th September 2022 now means that UK household energy bills will be capped at £2500 a year until 2024
Why Are UK Energy Costs Increasing So Much?
Limited supply, increasing demand, the conflict in Ukraine and a shortage of adequate storage space are all contributing to the hike in energy prices. The massive pipeline that transports gas from Russia to Germany is a large concern, especially with rising energy costs. The amount of gas that can be funnelled into Europe has made natural gas prices rise exponentially.
High global demand for energy paired with supply shortages means that prices are also rising in households across the European continent.
The limited storage of energy has made the situation worse. The largest gas storage facility was closed in 2017, which made these recent developments even more impactful. Through minimal government support, residents of the UK fear what all of this means for their ability to power their homes in the coming years.
Who Are Ofgem and What Do They Do?
Ofgem is the government regulator for the electricity and downstream natural gas markets in Great Britain. The acronym stands for “Office of Gas and Electricity Markets.” Their goal is to make sure that energy customers, especially those considered vulnerable, can benefit from greener and cleaner energy. Their tasks include working with industry, government and consumer groups with the purpose of providing these services at the lowest possible cost. Ofgem also works to ensure that all consumers receive fair treatment and a fair price. This enables both innovation and competition, at once driving down the costs and bringing about new products and services for consumers to take advantage of. Other tasks that Ofgem manages include:
- Recording complaints
- Administering price caps
- Determining what shows up on energy bills
- Keeping an eye on environmental and social schemes
- Offering a safety net if the supplier fails
In this time of rising energy costs, they are particularly important for those fearing for the coming months and what that might mean for their energy bills.
Top-Notch Ideas To Save Electricity in Your Home
The first order of business for many residents of the UK upon seeing the steep incline in price has been to reduce energy costs by any means. Energy-saving lighting is a surefire way to accomplish this, but there are other things you can do to help curb the effects:
- INSTALL SMART SWITCHES. Timed switches or ones that can be controlled using apps make it easy for you to ensure no lights are left idle when not in use.
- USE THE SWITCH. Electronics that are left on standby still use energy to allow you to turn them on at a moment’s notice. By turning them off at the switch, the electricity won’t be constantly flowing.
- DRAUGHT-PROOF DOORS AND WINDOWS. You are likely losing heat through windows and doors that are older and have gaps for the air to escape. Installing new windows with a better seal can prevent this from happening, thereby saving you money on your energy bills.
- USE YOUR WASHING MACHINE MORE EFFICIENTLY. You can save nearly £28 by reducing your use of the washing machine to once a week. You can also accomplish this by using the machine on a 30-degree cycle as opposed to higher temperatures.
- DRY CLOTHES THE OLD-FASHIONED WAY. Drying them on racks indoors or outdoors instead of using the tumble dryer will save you money on energy.
- TAKE SHORTER SHOWERS. By limiting your shower to four minutes when possible, you could save up to £70 annually on your energy bills.
- COMPLETELY FILL THE DISHWASHER. Leave no open spaces on the racks to ensure you are making the most of the hot water that is used to clean the dishes.
- LOW ENERGY LIGHTING. Swapping out the incandescent bulbs in your wall lighting, ceiling lighting and everything in between for LED bulbs can significantly cut down on energy costs.
Why LED Lighting Is an Important Change To Save Energy
Hands down, LED lights are the most energy-efficient lighting available today. Below are some of the main perks of switching to LED lighting where energy saving is concerned:
- SAVING ENERGY IS TOP PRIORITY. LED lights are much more efficient than other traditional lights. Their high efficiency means that five percent or less of their energy is wasted with use. With a reduction in energy, it stands to follow that you will also pay less money.
- MONEY SAVING BENEFITS. By using LED lights in your interior lighting design, you can cut down on the amount of energy that is used in the entire household. This will in turn reduce the costs you are paying to keep the house lit up.
- GENERATES LESS HEAT. LED lights emit hardly any heat, with only 10 percent of their energy turning to heat. The rest of that energy is spent on turning it into light. On the other hand, traditional bulbs with a filament can emit as much as 80 percent of their energy as heat. With less heat in your home, you will have to take fewer energy-draining measures to keep the house comfortable.
What Is the Payback Time for LED Lighting?
Whether you install LED bulbs in large recessed ceiling lights or small table lamps, you can benefit from a short payback period. Calculating this amount is a simple process, wherein you compare your new lights against the current ones you have.
You can do this both by calculating the actual price of the lightbulbs or the price of the energy they consume. Then, you will need to look for how long it takes for the light to pay for itself, otherwise known as breaking even.
Once the math has been done, it generally averages just below two months for the cost of the new lights to break even. This means there is only a short window that you will need to get through before you begin to see the lights as one of the energy- and money-saving investments in your home.
Are Home Solar Panels Worth the Investment?
Solar panels have long been a consideration for those looking to be more energy efficient. This is especially true as the cost of energy continues to climb at a staggering rate. Though the panels themselves are quite expensive, with prices averaging between £3,500 and £16,000 depending on the size of your system, the amount you can save by using solar energy will soon outweigh that.
Because you use the electricity that is collected by the solar panels as the source of energy to operate your home needs, the amount of energy you usually rely on from suppliers decreases. Based on estimates from Energy Saving Trust, an average household that uses a system with a 4.2-kilowatt peak may be able to save as much as £729 on their energy bills annually.
Pair this with the fact that any excess energy you generate can actually earn you £110 each year, and you will find that you may even be getting paid to use this source of energy. Over time, these solar panels will eventually pay for themselves, especially if you are using energy-saving LED lights in your fixtures. It truly doesn’t get any cheaper than that.
What Is the UK Government Doing To Help Households in the Energy Crisis?
To help offset the high energy prices, 8 million eligible low-income households are to receive two payments for a total of £650. Households are eligible who receive the following benefits:
- Universal credit
- Child tax credit
- Pension credit
- Income-related employment and support allowance
- Income support
- Income-based jobseekers allowance
- Working tax credit
Many institutions are also calling on the government to support businesses during this time. The British Chambers of Commerce have a five-point plan that should facilitate this, including:
- Giving Ofgem more power needed to strengthen the energy market’s regulation for businesses
- Governments to review and reform the storage occupation to limit wage pressures and fill staffing gaps
- Temporarily cutting VAT for energy, bringing it down from 30 percent to five percent
- Temporarily reversing the spike in contributions from national insurance to give money back to workers and businesses
Why It Is Important to Properly Insulate Your Home?
High-quality, reliable insulation is one of the most efficient methods of saving energy in your home. This is because it is responsible for keeping homes cool in the summer and warm in the winter. Heat naturally moves from warm areas to cooler ones; good insulation will resist the flow of this heated air, keeping it inside where it belongs.
The walls are among the most important areas to insulate; the walls in a typical home are responsible for allowing 30 to 40 percent of heat to escape. Other types of insulation to consider include roof insulation, floor insulation and window and door insulation.
With good insulation, less heat is needed to keep your home comfortable, which means spending less on energy. Estimates from the Energy Saving Trust state that in a year, the average three-bedroom, semi-detached house may be able to save up to £310 just by installing cavity wall and loft insulation.
Energy Saving LED Lighting To Consider
The LDC717 10 Watt White Finish Colour Selectable LED Downlight stands out with its ability to change the colour of the light depending on your mood. You can choose between warm 3000k and cool 6000k LED bulbs, both in the inner and outer rings. It shines a total of 1000 lumens of light, providing exceptional brightness from just one light fixture. Without the need for more bulbs close by it, you can save money.
Adding wall lights to your home, business or hotel can bring light to the shadowy areas. Thanks to the six-watt LED bulbs in the LWA241 6 Watt Black LED Wall Light, you can use limited energy to light it up. The fixture shines a soft glow of 430 lumens of 3000k warm white light, making it a great choice for supplemental mood lighting. The light is 100 percent recyclable, making it environmentally friendly as well.
Choosing energy-saving lighting doesn’t mean sacrificing style, and the LPL364 5 Watt Hanging LED Pendant Light proves it. The ultra-modern pendant light uses an energy-efficient LED bulb inside of a sleek, hooded fixture available in your choice of black, white, or black and gold. The lamp outputs 400 lumens of 3000k warm white light, which is the approximate equivalent of a 40-watt halogen lamp.
-
LBL701 12 Watt White Surface Mounted Anti Glare Downlight
This LBL701 12 Watt White Surface Mounted Anti Glare Downlight provides beautiful overhead lighting without all of the heat and glare of a traditional LED light. The bulb is tucked deeply enough inside the fixture that it does not cause a glare when you look at it. The result is light that pools beneath it, seemingly from an unknown source. It is a great way to add ambient light to your space that requires fewer bulbs, offers a decorative touch and lowers your energy costs.
-
LWA432 6 Watt Square IP65 Bathroom Wall Light
Even your bathroom can benefit from the money-saving power of LED lights. This wall lamp features a simple black or white rounded square panel behind which the light shines. The light it produces beams back onto the wall, creating a halo effect and giving the room an artistic finishing touch. The bathroom wall light outputs 600 lumens of 3000k warm white light, making it a stylish, efficient nightlight that won’t drive up energy costs to run.
