Gas and Electricity Bills Could Hit £6,000
According to the independent energy consultancy, Auxilione, the energy price cap could hit a staggering £6,000 a year from April. They predict prices will go up to £3,567 by October, £4,799 in January and finally to £6,089 in April.
This record-breaking rise is a monumental £4,000 increase over the next eight months. It’s even worse than previous predictions, up by almost £100 in January and almost £235 in April.
BP recently announced eye-watering profits of nearly £7 billion in the second quarter of 2022, while Shell came in at £9.4 billion. These profits will only ever increase as the energy price cap rises.
Government Action
Currently, the energy price cap sits at £1,971 a year for the average household. These worrying increases are expected to put 45 million people into poverty this winter, with many calls for the government to act now before a new prime minister is chosen.
It’s evident that Liz Truss and Rishi Sunak need to work together now for the benefit of the general public. While they disagree on windfall tax, there are other ways they can start to help.
Many politicians, including Gordon Brown and Sir Ed Davey, have called for the next prime minister to scrap the October price increase. The Lib Dems have called for an ‘energy furlough scheme’, which would mean the government absorbs the £36 billion cost, while Labour are in favour of freezing current prices.
Why Are Prices Going Up?
The price of gas in European markets has dramatically increased after the end of Covid lockdowns and because of the war in Ukraine. Gas supplies have been reduced, but demand has only increased, leading to these vast price hikes.
Take Back Control
What’s clear is that all of these factors are completely outside of our control. However, help is on hand to make sure you can get control back. Unlike Ovo Energy’s advice earlier this year, we won’t tell you to hug your pets to keep warm.
We’ve included some tips below to provide cost savings and an indication of how much you could save as a result.
Substantial Savings
Action* | Installation Cost | Potential Yearly Savings |
Install a new ground source heat pump | £15,000-£20,000 | £1,000 |
Install a new air source heat pump | £12,000-£17,000 | £910 |
Install loft insulation | £680 | £580 |
Install a new energy efficient boiler | £600-£4,000 | £580 |
Install electric solar panels | £6,500 | £505 |
Install cavity wall insulation | £2,500 | £480 |
Buying energy efficient appliances | £800-£1,200 | £336 |
Install solar water heating | £3,000-£5,000 | £95 |
*Sourced from www.energysavingtrust.org.uk and taken from replacing an old G rated gas fired boiler system. Appliance data sourced from www.which.co.uk
Small Savings
Action | Installation Cost | Potential Yearly Savings |
Draught-proof windows and doors | £255 | £45 |
Install a new hot water cylinder jacket | £17 | £35 |
Install radiator reflective panels | £60 | £25 |
Energy efficient LEDs or CFLs | £9 | £13 per bulb |
Free Actions
Action | Potential Yearly Savings |
Reduce your thermostat by 1°C | £105 |
Shower for only four minutes | £70 |
Dry your clothes naturally rather than using a tumble dryer | £60 |
Turn off appliances left on standby | £55 |
Use the eco settings on your dishwasher and only run them when they are full | £20 |
Turn off lights in rooms not being used | £20 |
Wash your clothes with detergent designed to work at lower temperatures | £14 |
Only boil the amount of water you need in your kettle | £11 |
Switching off smart speakers when not needed | £7 |
Take Action
While we all wait for the government to decide what action it is going to take, there are ways in which you can take back control of spiralling costs. Whether you have a budget or no budget at all, there are steps you can take to save money on your yearly energy bills.