UK Debt: January 2023 statistics
January 31, 2023UK Debt: February 2023 statistics
February 28, 2023In this cost of living crisis article, we will be exploring how to save money on energy bills during 2023, when the energy landscape is still very volatile
Ofgem announced a reduction in the Energy Price Cap as of April 2023 which is good news for UK households.
It will be reduced to £3,280 per annum (about £1,000 less than current levels) which is based on dual duel consumption for a typical household. Households will still see a rise in bills by £500 per year on average.
The bad news is that we will still see a 20% increase in our current bills if the government still goes ahead with their reduction of the energy price guarantee level.
What is the energy price guarantee?
In October 2022, the Government introduced the energy price guarantee, which is essentially a government subsidy where the government pay a proportion of our energy bills during this cost of living crisis.
This is different to the energy price cap, which is set by Ofgem and based on wholesale rates that energy retailers pay. The Government has no say over this cap.
What is due to happen in April?
Whereas Ofgem is announcing a reduction in the energy price cap due to the reduction in wholsale gas prices, it will not mean that UK households will see this reduction in their outgoings.
This is because the Government is planning to lower the energy price guarantee by 20% which in a cost of living crisis when many households are already feeling the squeeze, this is not good news.
Martin Lewis and a number of charities are appealing to the Chancellor to postpone the Government’s energy price guarantee from being reduced from April to July.
Save money on your energy bills now
Most of the next points are fairly standard ways to reduce energy consumption, however it is good to have a reminder from time to time. What we will highlight is that these tips would be a great way to reduce energy usage and save money in a savvy way.
During this cost of living crisis, where things are at a financial breaking point for families across the UK, it has highlighted that the standard of living is at an all time low.
In the kitchen
- Do not overfill your kettle
- Forget rinsing dishes before you put them in the dishwasher and ensure you have a full load before running the cycle
- Wash clothes on a colder cycle – 30 degrees is fine
- Reduce the number of loads you do – read about the number of wears certain items of clothes need before they are washed here
- Avoid using the tumble dryer – according to experts, each load could cost £1 each time to run
- If you have to use the tumble dryer, try to put less wet clothes in it – run an extra spin cycle on the washing machine or put a dry towel in the dryer with the wet clothes
In the bathroom
- Spend less time in the shower – a 4 minute shower could save around £95 per year on your energy bill
- Use an efficient showerhead if you are able to
- Consider having a shower rather than a bath
Electrical devices
- Switch off standby devices at the wall – up to £65 per year could be saved
- Don’t leave your mobile phone to charge overnight – it takes around 3 hours to fully charge a mobile, so leaving it to charge all night is using unnecessary energy
Around the home
- Seal arounds doors and windows to avoid draughts
- Add thermal curtains or close them in the late afternoon to keep heat in
- Turning down your thermostat by at least 1 degree could save £115 per year on average according to British Gas
- Turning down your boiler flow temperature to 60 degrees on your combi boiler can knock money off your energy bill
