As reported by The Guardian and the BBCBritish household energy bills are set to rise in April by more than the expected rate after regulator Ofgem stated that it would raise the price cap by 6.4 per cent due to an increase in wholesale costs.
Households in the UK will experience a £111 increase in their average annual energy bills starting this Aprilbringing the total to £1,849 from £1,738 now.
This increase – marking the third consecutive increase is primarily attributed to the higher wholesale gas and electricity prices. The unexpected cold weather has said to be another contributing factor driving up the wholesale prices.
Households are said to be paying approximately £600 more annually compared to three years ago.
The price cap was introduced in 2019 – aimed to set a limit on how much energy companies can charge homes on default tariffs per unit of gas and electricity consumed. This is reset every three months to reflect changes in wholesale prices.
Ofgem’s announcement is a setback to the government which is currently struggling with rising inflation and sluggish economic growth and to the government’s election pledge to reduce energy bills by “up to £300 by 2030.”
The energy price cap affects roughly 22 million customers on standard variable tariffs and is set to see adjustments in unit rates and standing charges for both gas and electricity.
Despite many government initiatives like the warm home discount, many consumers are already in energy debt making this hike even more unaffordable.
Less than a year after Rachel Reeves warned that around 10 million pensioners in England and Wales would lose access to the scheme – an expansion has been proposed extend support to an additional 2.7 million households including nearly a million families with children.
This would bring the total number of recipients next winter to 6.1 million – meaning to one in five families in Britain.
How to reduce your energy bill
As mundane as it might sound, switching off or unplugging devices when not in use is one of the easiest ways to save energy and reduce your bill. According to the Energy Saving Trusthomes could save around £45 annually.
Another effective way to save energy is to switch to efficient gadgets and appliances. This could be swapping traditional light bulbs for ‘energy-saver alternatives’ and finding appliances with an A+++ rating.
Making small changes like lowering the temperature on your washing machine to a 30-degree wash could cut costs by £24 in a year. Not to mention the cost of boiling a kettle – we love our cups of tea but the cost of it can be daunting to some. It is recommended that for one cup of tea, only 150ml to 250ml of water is needed! Breaking this habit can save people £29 a year.
Additionally, adjusting your thermostat lower by a few degrees is another good way to reduce your energy bill.
Implementing all of these simple changes can help you save a significant amount on your annual energy bill.
