Energy price rises will continue to impact homeowners this year, with household bills expected to rise by around £700 per year in April when the UK’s energy regulator Ofgem resets its energy price cap. It’s expected to increase significantly as global wholesale prices have risen considerably.

There’s been a worldwide squeeze on gas and energy supplies over the past year for a multitude of reasons, including an especially cold winter in 2020/21 and a windless 2021 summer. This energy shortage has affected the whole of Europe, but the UK has been hit relatively hard as it is one of Europe’s biggest users of natural gas. Around 85% of homes have gas central heating, and it also generates a third of the country’s electricity.

26 energy suppliers ceased trading last year due to exploding wholesale gas prices, and the government is currently reviewing a range of options to tackle the energy crisis. As well as this, wholesale gas prices have risen to unprecedented levels. Household gas bills soared by 28.1% in 2021, according to the Office for National Statistics (ONS), and electricity bills increased by 18.8% in 2021. In January 2021, the market price for suppliers for natural gas was approximately 50p a therm, whereas it is now around £2.23 a therm.  

There are quick fixes you can do in the short-term to reduce your bills, while the greater-value improvements generally come from making long-term investments in your energy efficiency. 

Short-term measures

Whilst people have been scrambling around comparing energy tariffs, experts say savings can be had at home with a few tips and tricks. Some simple, inexpensive ways to make your home more energy-efficient include:

• Swapping to LED light bulbs – this could save an average of £100.03 in two years (Energy Savings Trust)
• Using smart plugs – this could save households an average of £252.61 in two years (Smarter Home Guide)
• Integrating heating controls into your home
• Repairing any radiators not working
• Draught-proofing your house
• Turning your thermostat down one degree and heating your home for one hour less a day

You can ring your supplier to enquire about switching to a new energy deal to lower your bills, or move to another provider instead. Experts have also put forward some money-saving changes you can make to the way you pay your bills:

• Buying both gas and electricity from the same supplier can cost less
• Paying by monthly direct debit rather than quarterly bill usually saves you money
• Some suppliers offer benefits such as money off future bills for switching to paperless bills
• Gas and electricity can be more expensive if you use a prepayment meter
• Some energy companies allow you to fix your energy prices over a certain period of time. This means your bills will not go up if the price of electricity or gas goes up – but remember that they will still go up if you use more energy.

Long-term measures

 If you are looking for something more substantial, there are plenty of ways to make long-term improvements.

Making sure your home has efficient insulation is a good starting point. Insulating floors, your loft and your roof can all improve your home’s energy efficiency. The Energy Efficiency Infrastructure Group has called on the government to prioritise energy saving through home improvements, such as better insulation. It says this could save UK households more than £500 a year on energy bills.

Replacing your heating system with a low-carbon heating system, such as heat pumps or biomass boilers, can make a big difference over time as well.

You can also make the following improvements to your home: 

• Install solar panels
• Install secondary glazing
• Install an MVHR system

Improvement grants

There are initiatives in place to provide homeowners with financial assistance in making energy efficiency improvements, such as adding heat pumps to your home. These include the Renewable Heat Incentive and the Boiler Upgrade Scheme

If you are looking for something more substantial, then there are plenty of ways to make long-term improvements.

West & West can assist in guiding you through the best way to make your commercial or residential property as cost saving as possible during these tough times