You may have already heard of the new energy price cap of £1717/year, which will affect all households in England, Scotland and Wales that use electricity and gas on default tariffs. This cap represents a 10% increase compared to the previous one, so here is what you should know about it and how it’s likely to affect you:
REASONS FOR THE INCREASE
Energy price caps, in general, are introduced to protect homes from excessive charges by energy suppliers, making pricing and budgeting more predictable. However, the caps also reflect the rise and fall of energy prices on the international energy market. According to Ofgem (a public body overseeing the gas and electricity markets), the main reason for the recent cap increase is the higher price of energy caused by geopolitical tensions and extreme weather events, which drive competition for gas.
HOW WILL THE CAP INCREASE AFFECT YOU?
Unfortunately, the price cap increase will put additional financial pressure on households, although there is support available for those who need it the most, such as pension credits, Winter Fuel Payment and increased flexibility around suppliers, tariffs and standing charges (a fixed daily amount that you pay on your bill regardless of how much energy you use).
KEEPING YOUR COSTS DOWN VIA ENERGY-EFFICIENT SOLUTIONS
A smart way to lower your energy bills is to make energy-efficient improvements to your home. These can include swapping your boiler for a heat pump, installing solar panels or improving insulation. Small changes such as draught proofing and loft insulation can also make a big difference. Overall, energy-efficient home improvements to a three-bedroom, semi-detached home can save between £2,000 to £2,500 each year with insulation, solar energy and a heat pump. This data is based on July 2024 prices.
Ultimately, the solution you choose needs to be right for you and your home. That’s why YorEnergy offers a helping hand on your journey to energy efficiency, making sure you understand your options, connect with accredited suppliers and receive expert support every step of the way. This service is available to all York homeowners and includes a free home assessment as well as free expert advice on grants, planning permission, and access to finance and funding options. We also offer free initial project coordination delivered by qualified retrofit coordinators who will help you draw up a specification for your home and connect you to our accredited supplier marketplace.
ADDITIONAL BENEFITS OF ENERGY-EFFICIENT SOLUTIONS
On top of helping you save on costs, these solutions also make your home more sustainable and increase its value, while contributing to a wider-reaching goal of creating a more sustainable, energy-efficient future for York as a whole.
This is YorEnergy’s ultimate motivation, and we are passionate about making the process as easy as possible for you, to make sure you feel confident in joining the future of energy.
A great way to start is to use our free virtual plan builder, which will show you what options are available to you and how they can help lower your bills and CO₂ emissions. No matter which option you choose afterwards, we will be there to support you every step of the way.
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