– Chancellor declares “prepayment meter penalty over from July”, cutting energy bills for over four million families. – Families on prepayment meters will no longer pay more compared to people on direct debts. – Follows support this winter which has already cut the typical household bill by almost half.
OVER FOUR MILLION families are set to save £45 a year on their energy bills from July as the Chancellor ends the prepayment premium.
Households on prepayment meters pay more on average compared to direct debit customers due to extra costs firms take on managing meters – such as supplying vouchers and collecting payments – being passed on to users.
The vast majority of households who rely on prepayment meters are typically vulnerable or low income, which means the higher tariff and inability to spread the cost is hitting those who can least afford it.
At his Spring Budget next week, the Chancellor is expected to announce fairness reforms to energy bills, bringing the bills of families on prepayment meters in line with average direct debit energy bill under the Energy Price Guarantee.
Chancellor of the Exchequer, Jeremy Hunt said: “It is clearly unfair that those on prepayment meters pay more than others. We are going to put an end to that.
“From July four million households won’t pay more than those on direct debits. We’ve already cut energy bills by almost half this winter, and this latest reform is proof again that we’re always on the side of families.”
Energy Security Secretary Grant Shapps said: “Charging prepayment meter customers more to receive their energy is a tax on some of our most vulnerable – this change will stop that.
“It’s even more important at a time Brits are faced with high energy costs and when we’ve seen vulnerable households wrongly forced onto them. While actions I’ve pushed for have meant forced installations are on pause, warrants aren’t being waved through and Ofgem is toughening up its reviews, our changes will make sure families aren’t penalised simply for how they heat their home.”
The change is expected to come into effect from July 1 through updates to the Energy Price Guarantee at a cost of £200 million.
From April 2024, when the Energy Price Guarantee ends, the Chancellor has tasked energy regulator Ofgem to report back on additional regulatory options to permanently end the premium and bring fairness to bill payment methods in the long term.
The move is the latest government intervention to help families with their energy costs after the average family bill was cut by £1300 this Winter.
Harbour Homes has received an award from The National Lottery Community Fund, made possible by National Lottery players, to help tenants of seven housing associations with fuel poverty and energy efficiency during the cost of living crisis.
Harbour Homes, along with six other landlords that make up the ARCHIE alliance, own and manage 6,000 socially rented properties in Edinburgh.
A recent tenant survey from one of the ARCHIE members found that 40% of tenants had not put their heating on as they could not afford to heat their homes.
The funding allows Harbour Homes to hire two Energy Advice Officers who will:
Provide support to reduce fuel poverty, including support to deal with energy debt and avoiding future, energy debt, by proactively identifying households at risk and responding to referrals from ARCHIE members
Promote the service to external agencies supporting tenants and work in partnership with local organisations and wider fuel poverty initiatives to better support tenants directly
Deliver energy advice workshops and drop in events at local community venues supporting local people with free information and advice
Develop materials to share advice and information on energy efficiency for tenants, staff and the wider community
Help tenants adjust to net zero energy improvements such as solar panel installation or new heating systems
Heather Kiteley, Group Chief Executive of Harbour, said: “It is vital that we support our tenants at such a challenging time. I’m glad we can offer this service to our tenants and those of the six other members of the ARCHIE alliance.
“With the removal of energy price caps on the horizon and other funding sources and organisations being oversubscribed, this will be a real lifeline for people experiencing the horrendous consequences of fuel poverty.”
The National Lottery Community Fund Scotland Chair, Kate Still, said: “This project, delivered by Harbour Homes Scotland Limited, is a great example of community activity in action, showing just what can be achieved when people come together for a common cause or to help others.
“It’s all thanks to National Lottery players that we can help give charities and community groups throughout Scotland greater certainty during challenging times.”
Energy regulator Ofgem has announced its quarterly update to the energy price cap for the period 1 April – 30 June 2023.
From 1 April the energy price cap will be set at an annual level of £3,280 for a dual fuel household paying by direct debit based on typical consumption, a reduction of almost £1,000 from the current level, of £4,279 which reflects recent falls in wholesale energy prices.
The £3,280 figure indicates how much consumers on their energy suppliers’ basic tariff would pay if the government’s Energy Price Guarantee (EPG) were not in place.
From 1 April, the government has set the EPG at £3,000 for the typical bill – meaning that consumers will not pay the full level of the energy price cap.
This reduction in the price cap level reflects a significant reduction in the cost of buying and providing energy for customers. If it continues, it will mean that by the summer, prices paid by consumers will drop for the first time since the global gas crisis took hold more than 18 months ago.
The energy price cap was introduced by the government and has been in place since January 2019, and Ofgem is required to regularly review the level at which it is set. It ensures that an energy supplier can recoup its efficient costs while making sure customers do not pay a higher amount for their energy than they should. The price cap, as set out in law, does this by setting a maximum that suppliers can charge per unit of energy.
Ofgem CEO Jonathan Brearley said: “Although wholesale prices have fallen, the price cap has not yet fallen below the planned level of the Energy Price Guarantee. This means, that on current policy, bills will rise again in April. I know that, for many households this news will be deeply concerning.
“However, today’s announcement reflects the fundamental shift in the cost of wholesale energy for the first time since the gas crisis began, and while it won’t make an immediate difference to consumers, it’s a sign that some of the immense pressure we’ve seen in the energy markets over the last 18 months may be starting to ease. If the reduction in wholesale prices we’re currently seeing continues, the signs are positive that the price cap will fall again in the summer, potentially bringing bills significantly lower.
“However, prices are unlikely to fall back to the level we saw before the energy crisis. Even with the extensive package of government support that is currently in place, this is a very tough time for many households across Britain.
“Where people are struggling, we urge them to contact their supplier to make sure they are getting all the help and support they are entitled to. We also think that, with bills continuing to be so high, there is a case for examining with urgency the feasibility of a social tariff for customers in the most vulnerable situations.
Ofgem has robust rules in place to help people in vulnerable situations, and suppliers are obliged to offer payment plans and direct customers to available support.
Bill-payers will continue to receive additional support via the EPG until the end of March 2024, as confirmed by the Chancellor on Thursday 17 November 2022. The level of this support is set by Government.
There is no immediate action for consumers to take as a result of today’s announcement.
Ofgem continues to protect consumers through its ongoing robust regulation of the market, taking enforcement action where necessary and providing support to those who need it the most.
The next quarterly price cap update will be on 26 May 2023.
UK Government leaving people to prop up energy bosses’ profits, says STUC
Roz Foyer, STUC General Secretary, stated: “The energy price cap might have fallen today but the callous decisions of the UK Government means most people will be facing higher energy bills from April 1st. Thousands of people are being pushed into poverty and face choosing between a hot meal or a warm home.
“There is no justification for continuing to ask people across the UK to pay the price for energy companies billions of profit. We need to take back control of our energy system, tax these companies properly, and end the outrageous injustice of rising energy bills.”
An Ofgem spokesperson said: “These are extremely serious allegations from The Times. We are launching an urgent investigation into British Gas and we won’t hesitate to take firm enforcement action.
“It is unacceptable for any supplier to impose forced installations on vulnerable customers struggling to pay their bills before all other options have been exhausted and without carrying out thorough checks to ensure it is safe and practicable to do so.
“We have launched a major market-wide review investigating the rapid growth in prepayment meter installations and potential breaches of licences driving it.
“We are clear that suppliers must work hard to look after their customers at this time, especially those who are vulnerable. The energy crisis is no excuse for unacceptable behaviour towards any customer, particularly those in vulnerable circumstances.”
FORCE-FITTING payment meters in the home of vulnerable people is “shocking” and unnecessary, according to a leading energy expert.
Energy UK’s former CEO Angela Knight was commenting on the results of an investigation by the Times newspaper which found that British Gas was forcing people to have pre-payment meters.
It found that debt collectors working for the firm were breaking into people’s homes to fit the meters.
Ms Knight told GB News: “I do think it’s a shocking story and I think it’s a wake up call not just to [British Gas owner] Centrica, but to all the energy companies.
“Firstly, there are people who say, I’m not going to pay, they can afford to pay, but they won’t pay…
“That’s what this process is supposed to be for, the process being that the energy company applies to the court for a court order in order to put in a pre-paid meter.
“So the individuals who say they won’t pay, but as I say, they can afford to, they are getting a pre-paid meter, so they’re not cut off.”
In a discussion with Bev Turner, she said: “But then, you’ve got a lot of people who fit into that vulnerable category and that’s people like the elderly, or people who are disabled, it’s those with very young children.
“And if they have hit a difficulty with being able to pay for their energy, and a lot of people are finding it difficult at the moment, then a pre-paid meter is not the answer.
“They need to have an arrangement with their energy company and importantly, the energy company has a responsibility to find out first if somebody who isn’t paying falls into one of those special categories, and vulnerable categories.
“And if they do, then they shouldn’t be applying to the courts, what they should be doing is making another arrangement.”
Ms Knight added: “Now what Centrica said is they’ve stopped all of their applications right now and good on them.
“Clearly, they’re going to have to sort out the vulnerable from the not vulnerable, but they have not got a few months to do it, and then they can refresh how they approach this problem.
“And I think that what The Times’ sting has done, and what the Centrica announcement means, is that all other energy companies pay exactly the same amount of attention first, before applying for that court order.”
Commenting on the decision by Ofgem, which has ordered British Gas to stop force-fitting prepayment meters, the National Association of Property Buyers said: “The sorry story of utility providers that was uncovered by The Times newspaper investigation highlights the potential injustices faced by many people in financial difficulty.
“The NAPB welcomes the fact that the company concerned has held their hands up and that Ofgem will be taking action to address the issue.
Spokesman Jonathan Rolande continued: “There is still a question to answer though. How, as a society do we deal with a situation where a householder has missed numerous payments and received letters and calls offering help, all to no avail?
“With heat, light and water being such basic human essentials, at what point are the companies allowed to disconnect? If allowed to continue unchallenged the lost revenue would inevitably be passed on to other paying customers – would that be fair? The providers are companies, should they carry the cost of unpaid bills alone?
“But the case in favour of the utility providers is seriously undermined by the huge profits made and massive salaries paid to executives – their pay is often counted in millions and there is no public sympathy for their cause.
“For now it is a relief that the intrusive practises of forced or tricked entry will be gone, but there are business and moral dilemmas for the companies, government and the public that will need to be addressed to ensure that the burden of unpaid bills doesn’t fall on those who are struggling but paying.”
Fuel poverty charity reveals 45 people per day die from cold homes
Last month, ONS releases figures showing 13,400 more deaths occurred in the winter period (December 2021 to March 2022) compared with the average of the non-winter months.
Fuel poverty charity National Energy Action says that based on modelling by the World Health Organisation, cold homes caused 4,020 excess winter deaths last year in England and Wales. That’s 45 people per day in winter months.
Despite the new figures being the second lowest for decades, the charity warns they only cover last winter, when energy bills were half the amount that they are now.
The report coincides with the full publication of National Energy Action’s Fuel Poverty Monitor, which finds that households that have a low income and have a medical condition or use powered medical equipment at home are most at risk of the worst impacts of living in a cold home.
They say these households have not been provided with adequate support during the Energy Crisis and are fearful next year’s winter mortality figures will be much worse.
The Office of National Statistics (ONS) has released figures showing there were 13,400 more deaths in England and Wales in the winter period (December 2021 to March 2022) compared with the average of the non-winter months.
Fuel poverty charity National Energy Action has said that up to 4,020 of these deaths were preventable and were caused by the impact of cold homes. That’s 45 people dying per day in the winter months last year – 42 in England and three in Wales. However, because of the time lag of the data, the true picture for this winter is likely to be much worse.
Last October 4.5 million UK homes were in fuel poverty, according to the charity’s figures, now – even with Government support, it’s 6.7 million UK households. The average annual bill has almost doubled in a year – from £1,271 to £2,500. The charity warns this means next year’s ONS figures are likely to be much worse.
Adam Scorer, chief executive of National Energy Action (NEA), said: “Every year we see the consequences of failing to keep the most vulnerable people safe and warm during the coldest, winter months.
“Today’s figures show a significant drop in premature winter deaths, partly because of a higher number of deaths outside winter months, but it’s still 45 people per day in the winter months. The truth is that we should not accept any death directly caused by a cold, unsafe home.
“Next year, these statistics will expose the full impact of today’s energy crisis. The toxic combination of extraordinary heating costs, stagnant or falling incomes, and our notoriously poor, unhealthy housing stock will take a heavier toll with lives blighted by debt, ill health, and worse.
“Milder weather may not save us, or thousands of vulnerable households this winter. We must do all we can now to prevent a public health emergency and further needless deaths. Fuel poverty needs long term solutions, but this winter we need the UK Government to give more support and stop millions falling through the cracks with the most awful consequences.”
The ONS figures cover the same period as National Energy Action’s Fuel Poverty Monitor, which is released in full on Thursday 19 January. The Executive Summary was released on Tuesday 17 January.
The Fuel Poverty Monitor shows that households falling into multiple intersecting categories of vulnerability are being disproportionately affected by the Energy Crisis.
While all low-income households are feeling a significant strain during the crisis, impacts go beyond those receiving means-tested benefits, and are felt most acutely by those households that have intersecting categories of vulnerability. These households are not caught by traditional identification measures and new ways of finding vulnerable households are required.
In particular, those households that have both a low income and have a medical condition or in need of powered medical equipment at home are most at risk of the worst impacts of living in a cold home. They have not been provided with adequate support.
Previous research has consistently demonstrated the links between cold homes and health conditions, especially musculoskeletal, cardiovascular, and respiratory conditions, as well as conditions related to mental ill health.
And, a recent systematic review of evidence from across the globe concluded that fuel poverty is associated with “poorer general health, poorer mental health, poorer respiratory health, more and worse controlled chronic conditions, higher mortality, higher use of health services and higher exposure to health risks, with worse results for vulnerable groups across dimensions of inequality.”
Moreover, cold homes are linked to the development and/or exacerbation of cold-related illnesses, especially in winter, and contribute directly to excess winter deaths, hospitalisations, and wider pressure on health and social care services.
Fuel Insecurity Fund extended to help fuel poor households
Thousands of vulnerable households will be supported by the continuation of the Scottish Government’s uprated £20 million Fuel Insecurity Fund.
Announced as part of last week’s Scottish Budget 2023-24, the investment will enable third sector partners to continue to provide support to households who are at risk of self-disconnection or self-rationing their energy use.
While the Scottish Government remains committed to engaging with the UK Government to deliver a referendum on Scottish Independence, funding that was originally earmarked for a referendum in 2023 will now be used to help tackle fuel poverty.
Last week’s Scottish Budget included additional steps to address inequality while tackling the climate emergency including increased investment of over £366 million next year to support the delivery of the Heat in Buildings Strategy. It forms part of a package of measures introduced by the Scottish Government to protect the most vulnerable households from the impact of the current cost of living crisis.
The decisions taken through the Emergency Budget Review in November enabled the Scottish Government to provide additional immediate support to people most impacted by the cost of living crisis, specifically rising energy prices, by doubling the Fuel Insecurity Fund to £20 million this year. The Scottish Budget is now protecting that investment into 2023-24.
First Minister Nicola Sturgeon and Minister for Zero Carbon Buildings Patrick Harvie met with people on the frontline of tackling fuel poverty, while visiting the Wise Group in Glasgow, a social enterprise working to lift people out of poverty by providing mentoring support to help with employment and life skills and offering energy advice.
First Minister Nicola Sturgeon said: “People across our country are paying a steep price for the economic mismanagement of the UK Government, with the cost of living forcing many to choose between heating their home or eating – the Fuel Insecurity Fund aims to stop that happening.
“The Scottish Government has, and always will, use its currently limited powers to the maximum extent in order to meet the challenges being faced by the people of Scotland right now. Powers relating to energy markets are reserved to the UK Government, so I am renewing my call for further and more urgent action, to support the most vulnerable households.
“With this intervention – as with many others the Scottish Government has set out – we are having to divert funding into policies that aim to minimise the impact on people as a direct result of UK Government policy.
“The full powers of independence would enable us to make different choices and help people facing the devastating consequences of the cost of living crisis.”
Minister for Zero Carbon Buildings and Tenants’ Rights Patrick Harvie said: “Everyone needs a safe, warm and affordable place to call home and yet despite this we know that many people are struggling under the weight of their energy bills and wider cost of living pressures.
“Last week, the Scottish Budget confirmed £366m for insulating homes and buildings and tackling fuel poverty as part of our £1.8 billion commitment to Heat in Buildings over this Parliament.
“That is essential work to make sure that Scotland has warmer homes which are cheaper to heat for decades ahead. We also need the full range of powers on matters like energy pricing, consumer protection and energy supply to make the biggest possible difference.
“But right now, the Fuel Insecurity Fund is a lifeline to many people struggling most with fuel poverty which is why we have made the commitment for next year.”
There are now an estimated 860,000 fuel-poor households in Scotland following the latest increase in energy bills on 1 October
As more and more people across the country continue to worry about the cost of living, Zero Carbon Buildings Minister Patrick Harvie wants people living in Edinburgh to know that free impartial advice and financial support is available to help make home energy improvements.
Home Energy Scotland’s ‘Warmer Homes Scotland’ programme could provide funding of up to £5,000 to help support homeowners in Edinburgh to make their homes warmer, greener and more efficient to heat. This latest Scottish Government campaign aims to raise awareness of the support available to tackle energy bills and fuel poverty.
Commenting on the launch of the Home Energy Scotland 2022/23 campaign, Zero Carbon Buildings Minister Patrick Harvie said: “Many people across the country including Edinburgh continue to worry about the cost of living crisis and the big rise in energy bills caused by surging gas prices.
“Our latest estimates indicate that there are around 860,000 fuel-poor households in Scotland, of which 600,000 will experience extreme fuel poverty, following the latest increase in energy bills on 1 October.
“We are making sure that anyone in Edinburgh worried about or struggling to pay their energy bills can get the right support and advice.
“Our Home Energy Scotland service, delivered by the Energy Saving Trust, provides free and impartial advice, support and funding to help households in Scotland to better insulate their homes saving on energy costs while at the same time reducing their impact on the environment.
“The Home Energy Scotland team are on hand to advise how our Warmer Homes Scotland programme could provide funding of up to £5,000 to help make your home warmer, greener and more efficient to heat.
“A range of measures – big and small – to improve energy efficiency around your home are likely to be available, and I’d urge all households to find out more and get advice as soon as possible.”
Chancellor urged not to pass on costs to struggling households
The UK Government is being urged by the devolved governments to fund its cap on energy prices through a windfall tax, not higher borrowing.
In a joint letter to the new Chancellor of the Exchequer Kwasi Kwarteng (below), Deputy First Minister John Swinney is joined by Finance Ministers from Wales and Northern Ireland in calling for more targeted support to those impacted the most by the cost of living crisis.
They express their concern that more action is needed to prevent further hardship for households and businesses and say support “should be funded by targeting the windfall gains in the energy sector rather than passing on the cost through higher borrowing”.
The Finance Ministers also call for additional funding to support vital public services in the face of rising prices, energy costs and wage pressures as devolved settlements are worth considerably less in real terms than last October when they were set.
The joint letter reads:
Dear Kwasi,
We want to jointly congratulate you on your new role as Chancellor of the Exchequer. We are committed to working constructively with you and the new UK Government. A productive working relationship will be essential to tackle the economic crisis facing our citizens, communities and businesses.
We wrote to your predecessor on 15 July outlining our considerable concerns with the worsening economic situation in the UK including the cost crisis, funding for public sector pay and the impact of inflation on the Devolved Governments’ budgets. Our letter has been included as an annex here.
The Prime Minister’s announcement of 8 September limiting increases in energy bills will alleviate some of the anticipated additional pressures on households and businesses. However, it is important to recognise that overall this is an expensive package of measures that does not target support to those who need it most. We are deeply concerned at who will bear the brunt of these costs. Support should be funded by targeting the windfall gains in the energy sector rather than passing the cost to households through higher borrowing.
Looking ahead to your forthcoming fiscal statement, we urge you to focus efforts on those most impacted, not just relying on blanket interventions which do not recognise the scale of hardship particular households are facing. An extended and targeted support package needs to be provided to help those who, even with the cap, are facing the impossible choice between heating their homes and feeding themselves and their loved ones. Even with the price cap, energy costs are still double what they were last year.
In addition to households, early clarity and additional support is also required for businesses and the third sector, who are facing substantial challenges. The current measures provide businesses with only a temporary respite and little certainty to help them plan for the future. Many organisations would be forced to close if they are not supported.
Ministers in the Devolved Governments have exhausted the options available to us to address the cost crisis, stretching every pound available to us to provide support. The main levers that can make a difference are held by the UK Government and it must now take urgent steps to use these to provide much needed certainty to those suffering hardship and poverty.
The crisis has also resulted in a major squeeze on funding for public services and increases in demand. Additional funding is urgently needed to support our vital public services in the face of rising prices, energy costs and wage pressures, alongside unforeseen pressures. Based on recent inflation and widespread inflationary expectations for the next year or two, our respective three-year spending review settlements are worth considerably, potentially billions, less in real terms than when we received them last October.
Further, Russia’s unprovoked invasion of Ukraine has resulted in many Ukrainians seeking safety across the UK, however it is necessary to increase the funding available to support them here. In particular, there is a lack of parity in the funding available for those arriving under the Ukraine Family Scheme and the Ukraine Sponsorship Scheme, which cannot be right. ‘Thank You Payments’ to host families should also, in line with Lord Harrington’s recommendation, be doubled to ensure that those who have opened their homes to Ukrainians do not lose out financially as a result.
We would welcome early engagement and clarity on planned fiscal events to enable us to set out the implications for the devolved nations and effectively plan our own budgets, which are significantly impacted by UK spending and tax decisions.
Collaborative working between the UK Government and the Devolved Governments in a spirit of mutual respect would be of benefit to all of us.
Given that, now overdue, action is required to tackle the crisis we propose a quadrilateral meeting with the Chief Secretary to the Treasury as soon as possible and in advance of the FISC to agree the immediate steps that must be taken to tackle this issue and support households, businesses and the public sector.
This letter has been copied to the Chief Secretary to the Treasury and the Secretaries of State for Scotland, Wales and Northern Ireland.
Yours sincerely,
John Swinney BPA/MSP
An Leas-phrìomh Mhinistear agus Ath-shlànachadh Cobhid, Riaghaltas na h-Alba
Deputy First Minister and Cabinet Secretary for Covid Recovery, Scottish Government
Rebecca Evans AS/MS
Y Gweinidog Cyllid a Llywodraeth Leol, Llywodraeth Cymru
Minister for Finance and Local Government, Welsh Government
AFTER weeks of growing pressure, the Government has finally announced it will step in to help households and businesses from soaring energy prices.
Under new plans announced by Liz Truss, a freeze will protect tens of millions from bills hitting unmanageable levels.
But the policy, the first major move of Ms Truss’ premiership, comes at a cost. Not just will the Government have to find an estimated £150bn to fund the scheme. There are also fears that many energy providers could look to ration fuel if households don’t reduce their usage over the Winter.
Over the last few weeks, we’ve been bombarded with advice on how to save money on our bills.
Here energy saving expert Jonathan Rolande, from House Buy Fast, condenses them into a brilliant a-z guide which could help households to save thousands of pounds a year.
Jonathan said: “The reality is the full impact of the cost of living crisis is yet to kick in and the full impact of the squeeze will probably be most acutely felt in the next few weeks.
“But there are steps you can take to save money which, if you introduce now into your daily lives, can also help you save money for the rest of your life.”
Here’s Jonathan’s A-Z guide on saving money:
Avoid tumble dryers. They use a shocking amount of energy, and can cost upwards of £300 a year to run based on usage twice a week. You can easily work out how much it costs to run a tumble dryer yourself based on your specific model if you know the kWh. As a more cost-effective alternative consider drying clothes outside on a washing line or even investing in a heated clothes airer which usually costs around 6p an hour to run.
Bleed your radiators. Not only will it release pressure on your finances, trapped air can make your radiators less efficient, so they’ll be slower to heat up.
Draw the curtains. It sounds simple but failing to do so means you can lose a lot of heat at night in every room.
Dusty condensing coils behind your fridge and freezer, which are used to cool and condense, can trap air and create blockages. This is not what you want. Keep them clean and they’ll stay cool and use less energy.
Exhaust fans around the home cost a fortune. Turn off kitchen or bath exhaust fans as soon as possible after you’ve used them.
Fill it up. Don’t worry I’m not referring to the petrol tank. Fill up the washing machine and dishwasher. Research by Thames Water and Gov.uk recently found that 68 per cent of households are only putting the dishwasher and washing machine on when they are completely full in a bid to save energy. It is a savvy move to wait until a washing machine or dishwasher is full as the appliances will use the same amount of energy to clean fewer items. So it’s smarter to wait to do fewer washes with more items, than waste energy on more half full washes.
Going away on holiday or a business trip? Make sure to turn off your water heater while you are gone. Otherwise it will keep heating the water in a “standby mode” costing you money in the process.
Hive is, in my opinion, the best energy saving app on the market right now. Use the app to keep track of what’s happening at home and set schedules or switch any home electrical device on or off rather than leaving them on standby.
Insulate your loft. I know it’s probably a job you’ve had on the to-do list for a long-time but now is the perfect moment. You can save hundreds of pounds a year by creating better insulation up there.
Things may be tight, but consider treating yourself to a jacket – for your boiler… The best come with a recommended thickness of 75mm and help keep your water hotter for longer and reduce your energy bills. A new one is easy to fit – the materials will only cost you about £25 and it could save upwards of £100-£150 a year.
The kitchen is a great place to cook up money saving methods. Consider using slow cookers and pressure cookers during the spending squeeze. They are more economical and you can batch cook dishes like stews, curries and soups that will last for days.
Loft hatches are the forgotten item when it comes to energy saving plans. Attach insulation to the top of it and create a seal with draught proofing around the perimeter. So many people spend a huge amount insulating their lofts, but neglect the loft hatch completely meaning lots of heat escapes up through the hatch. If you are looking for a really simple way to save energy in the home, then ensuring the loft hatch is adequately insulated and draught proofed is a great way to get started.
My Earth App is one of my favourite go-to apps at the moment. Originally created by researchers and students at the University of Wisconsin-Madison School of Human Ecology, the app is designed to help you keep track of your personal energy usage, your savings and your total impact. The app contains five main categories: electricity, recycling, travel, food and usage. It includes day-to-day activities to measure how environmentally friendly your actions are. These activities can range from small measures like recycling your glass bottles to larger tasks like switching your appliances with energy-efficient replacements. It also includes a diary for users to check off their activities and lets you visualise how small steps can add up to a bigger impact environmentally.
Nighttime rates are a must during this ongoing credit crunch. A few energy providers charge less for using electricity at certain times of day or night). These off-peak hours tend to be quieter periods when power demand is at its lowest, for example between 8pm and 8am. The name for this type of charging approach is time of use tariffs. The amount you pay depends on the time of day you use electricity. Ask your provider.
Nothing makes life better than a brew. But don’t overfill the kettle. Boiling more water than necessary each time could save you £36 year, based on calculations from the Energy Saving Trust.
Kettles will vary in the amount of energy they use, but you can easily work out how much it costs to boil a kettle by checking the wattage and price you pay for energy per pence/kWH.
Print on both sides of paper. A friend of mine suggested this to me last year and within a few months I’d saved a packet on my printer ink costs. So many of us now work from home and most schoolchildren need to print off work. By switching your printer settings to double-side you can save money double quick.
Flick on the quickwash settingon a dishwasher. The longer washers soak plates at a lower temperature so are cheaper
Radiators are generally set too high in most homes. turn the thermostat down in unused rooms. If you lower the temperature of your radiator down by just one degree you can save £55 a year.
Showers….Look, I’m not going to force you to get in and out in four minutes. If you can, great. One minute less in the shower could save you up to £80 annually.
But there are other things you could do too – like fitting a water-efficient shower head.
The Energy Saving Trust predicts that a water-efficient shower head could save a household up to £195 a year. One minute less in the shower could save you up to £80 annually.
Modern shower heads use current-limiting technology to save up to 40 per cent water usage, while showering under normal water pressure. This will cost you around £20-£40, but will save you in the long run.
Install tap aerators. These ‘inject’ air into the water as it comes out the tap, so while it looks like there is no impact on the flow rate, a fraction of the water is used. These are especially useful if you are on a water meter.
USwitch, Compare the Market and other comparison sites are a must at the moment. Look at them regularly – once a fortnight if you can – as they will help you check to make sure you’re on the correct tariff
The vehicles we own are increasingly being powered by electricity. Aim to charge your car overnight when you could benefit from a cheaper night-time rate for your power.
Wasting power is a no-no in the current climate and leaving appliances on standby is like pouring money down the drain. It’s widely reported that the average household could be wasting as many as 7,374 hours of electricity every year when a device is left on standby.
It’s easy to do. For example, many of us disconnect our phones but leave the charger plugged in. And some devices, such as TVs, don’t have an easily accessible on-off switch.
But leaving devices on standby uses up power – sometimes known as ‘vampire energy’ – and over the course of a year it can really add up.
These are some indicative annual savings, found particularly among older devices:
· Turning off the light in an unused room – £25
· Television – £16-24
· Set-top box – £20-23
· Games devices – £16
· Smart speakers – £3.45 per speaker
· Microwave – £16
And if you’re working from home, don’t forget about office equipment:
· Printers (particularly those with LED displays) – £3-4 a year
· Laptops – £5 (but make sure you shut down and switch off rather than simply closing the lid)
X4 – that’s the amount more you pay for electric heating compared to gas. If you don’t have a choice opt for infrared or if funds allow, try and push for a heat pump – these two types of electric heating are by far the most efficient.
Yellow light bulbs and other LED saving options are just a great way of saving cash. You can save £2-3 per year for every traditional halogen bulb you switch to a similarly bright LED bulb. If the average UK household replaced all of their bulbs with LEDs, it would cost about £100 and save about £40 a year on bills.
Replacing a 50W halogen with an LED equivalent could cut your energy costs by £75 over the lifetime of the bulb – not including the price all the replacement halogen bulbs you no longer need to buy; of a typical LED costs between £2.50-12.
Zap-map is a brilliant new app. It lists and regularly updates electric charging points for cars. You can download it for free and find available charge points locally by searching the most comprehensive database of charging points, plan journeys, share updates and pay for charging on participating networks.It allows you to locate the 33,000 publicly available charging points in the UK when you are out and about, taking the stress out of electric vehicle driving.
Prime Minister Liz Truss’s opening speech on the energy policy debate in the House of Commons yesterday:
Earlier this week I promised I would deal with the soaring energy prices faced by families and businesses across the UK. And today I am delivering on that promise.
This Government is moving immediately to introduce a new Energy Price Guarantee that will give people certainty on energy bills.
It will curb inflation and boost growth.
This Guarantee – which includes a temporary suspension of green levies – means that from 1st October a typical household will pay no more than £2,500 per year for each of the next two years, while we get the energy market back on track.
This will save a typical household £1,000 a year. It comes in addition to the £400 Energy Bills Support Scheme.
This Guarantee supersedes the Ofgem price cap, and has been agreed with energy retailers.
We will deliver this by securing the wholesale price for energy, while putting in place long-term measures to secure future supplies at more affordable rates.
We are supporting this country through this winter and next, and tackling the root cause of high prices, so we are never in this position again.
For those using heating oil, living in park homes or those on heat networks, we will set up a fund so that all UK consumers can benefit from equivalent support.
We will also support all businesses, charities and public sector organisations with their energy costs this winter – offering an equivalent guarantee for 6 months.
After those 6 months we will provide further support to vulnerable sectors, such as hospitality, including our local pubs.
My Rt Hon Friend the Business Secretary will work with businesses to review where this should be targeted to make sure those most in need get support. This review will be concluded within 3 months, giving businesses certainty.
In the meantime, companies with the wherewithal need to be looking for ways they can improve energy efficiency and increase direct energy generation
We will be bringing forward emergency legislation to deliver this policy. And my Rt Hon Friend the Chancellor of the Exchequer will set out the expected costs as part of his fiscal statement later this month.
I can tell the House today that we will not be giving in to calls for this to be funded through a windfall tax.
That would undermine the national interest by discouraging the very investment we need to secure home-grown energy supplies. You can’t tax your way to growth.
Instead, we are taking an approach which is pro-growth, pro-business and pro the investment we need for energy security.
This is the moment to be bold. We are facing a global energy crisis and there are no ‘cost-free’ options.
There will be a cost to this intervention. However we are also acting immediately to defray the cost of this intervention in three ways.
Firstly, by ramping up supply.
Following on from the successful vaccine taskforce, we have created a new Energy Supply Taskforce under the leadership of Maddy McTernan.
They are already negotiating new long term energy contracts with domestic and international gas suppliers to immediately bring down the cost of this intervention.
We are also accelerating all sources of domestic energy, including North Sea oil and gas production.
We will be launching a new licensing round, which we expect to lead to over 100 new licences being awarded.
And we will speed up our deployment of all clean and renewable technologies including hydrogen, solar, carbon capture and storage, and wind… where we are already the world leader in offshore generation.
Renewable and nuclear generators will move onto Contracts for Difference to end the situation where electricity prices are set by the marginal price of gas.
This will mean generators are receiving a fair price, reflecting their cost of production, further bringing down the cost of this intervention.
Secondly, today’s action will deliver substantial benefits to our economy, boosting growth which increases tax receipts and gives certainty to business.
This intervention is expected to curb inflation by up to 5 percentage points, bringing a reduction in the cost of servicing government debt.
Thirdly, this morning, together with the Bank of England, we will set up a new scheme, worth up to £40 billion, to ensure that firms operating in wholesale energy markets have the liquidity they need to manage price volatility.
This will stabilise the market and decrease the likelihood that energy retailers need our support, like they did last Winter.
By increasing supply, boosting the economy and increasing liquidity in the market we will significantly reduce the cost to government of this intervention.
As well as dealing with the immediate situation we face, we are also dealing with the root causes.
Energy policy over the past decades has not focused enough on securing supply.
There’s no better example than nuclear, where the UK has not built a single new nuclear reactor in 25 years.
It’s not just about supply. The regulatory structures have failed, exposing the problems of having a price cap applied to the retail but not the wholesale market.
All of this has left us vulnerable to volatile global markets and malign actors in an increasingly geopolitical world.
That is why Putin is exploiting by weaponising energy supplies as part of his illegal war on Ukraine.
So as well as the action we are taking today on bills, we will use the next 2 years to make sure that the United Kingdom is never in this situation again.
I will be launching two reviews.
Firstly, a review of energy regulation to fix the underlying problems. We want a new approach which will address supply and affordability for the long term.
Secondly, we will conduct a review to ensure we deliver net zero by 2050 in a way that is pro-business and pro-growth. This review will be led by my Rt Hon Friend the member for Kingswood.
We are delivering a stable environment that gives investors the confidence to back gas as part of our transition to net zero.
We will end the moratorium on extracting our huge reserves of shale, which could get gas flowing in as soon as six months, where there is local support.
We will launch Great British Nuclear later this month – putting us on the path to deliver up to a quarter of our electricity generation with nuclear by 2050.
As a result of these steps on shale and nuclear and the acceleration of renewables, I am today setting a new ambition for our country.
Far from being dependent on the global energy market and the actions of malign actors, we will make sure the UK a net energy exporter by 2040.
And my Rt Hon Friend the Business Secretary will set out a plan in the next two months to make sure we achieve this.
I know businesses and families are very concerned about how they will get through this winter.
That’s why I felt it was important to act urgently to provide immediate help and support, as well as setting out our plan about how we are going to secure the UK’s future supplies.
This is part of my vision for rebuilding our economy.
Secure energy supply is vital to growth and prosperity. Yet it has been ignored for too long.
I will end the UK’s short-termist approach to energy security and supply once and for all.
That is what I promised on the steps of Downing Street.
Today we are acting decisively to deliver that pledge.
This will help us build a stronger, more resilient and more secure United Kingdom.
I commend this motion to the House.
UK GOVERNMENT BORROWING MORE TO BOLSTER OIL COMPANY PROFITS
Environmental campaigners have reacted to the UK Government plans for an energy price freeze funded by borrowing.
The UK Government will open a new licensing round for the North Sea next week, and is expected to give out over 100 permits for companies to look for more climate-wrecking oil and gas. This is despite climate science and energy experts warning that any new oil and gas projects will push the world well past dangerous climate limits.
Independent advisors have made it clear that increasing UK supply of oil and gas will have almost no impact on UK bills as prices are set by the international market.
Liz Truss also announced that her Government will lift the moratorium on shale gas. Scotland has a de facto ban on fracking.
In the first 6 months of 2022, 5 oil companies made over £80 billion in profits: Shell £16.6bn, BP £12.2bn, Exxonmobil £21.7bn, TotalEnergies £15.2bn, Chevron £14.5bn.
Friends of the Earth Scotland’s head of campaigns Mary Church said: “The impact of measures announced today to stop the immediate rise in household bills is welcome, but the approach taken by the new Prime Minister singularly fails to address the fundamental problems of a broken energy system that serves only to enrich oil company bosses and shareholders.
“The money the UK Government is borrowing will be pumped straight into the coffers of oil companies when it could have helped deliver the transition to clean, reliable renewables. People in the UK are being robbed by fossil fuel companies but instead of making them pay for the harm they are causing, Liz Truss has decided to borrow more money to keep paying the robbers.
“This energy price crisis is being driven by the price of fossil fuels and the only sure fire to prevent this happening again is a rapid and fair transition to renewable energy and a scaling up of energy efficiency.”
+ NORTH SEA OIL & GAS LICENCES “Burning oil and gas is driving the climate emergency that sees tens of millions displaced by floods in Pakistan and has brought extreme heatwaves and drought across the UK. The UK Government is denying the reality of climate change by encouraging companies to seek out more fuel for the fire that is engulfing the world.
“The Scottish Government must be willing to stand up to these reckless plans to expand fossil fuels and hand out more licences for oil and gas companies to explore and drill in the North Sea. Ministers at Holyrood must speak out and use all the tools at their disposal to block any plans to further lock us into the oil and gas that is driving both the climate and cost of living crises.”
+ FRACKING “The move to try reopen and force through fracking is a disgrace. Not only is the industry incredibly harmful in climate terms it also brings with it serious local health and environmental risks. Its laughable to suggest that fracked gas will deliver within 6 months. Communities have already successfully fought and stopped it in Northern Ireland, England and Scotland so wherever this dirty dangerous industry is proposed, it will be opposed once again.”
Commenting on the proposals announced by the government today to support households and businesses with energy bills, TUC General Secretary Frances O’Grady said: “Freezing energy bills this autumn is essential for families and to protect jobs and businesses.
“But the Prime Minister is making the wrong people pay. She should have imposed a much larger windfall tax on profiteering oil and gas giants. And she should have required all firms getting help with energy bills to commit to no lay-offs for the lifetime of the help, to protect livelihoods.
“And it’s not just energy bills soaring – so she needs to do more to help families get through the winter. That means a real plan to get wages rising, a big boost to universal credit, child benefit and pensions, and a massive rollout of home improvements to cut bills. And it’s time to bring energy retail into public ownership to make sure this crisis never happens again.”
The TUC says that the government should set out a programme to make UK living standards more resilient and the UK economy more resistant to a future crisis. This should include:
Increase the windfall tax to a fairer level relative to the excess profits oil and gas firms are making.
Rapid rollout of home energy efficiency and taking the energy retail companies into public ownership – including a new approach to energy pricing with a free band of energy to cover basic lighting, heating, hot water and cooking.
A plan to get pay rising for all workers – including stronger pay bargaining rights so that working people and their unions can make fair pay agreements across whole industries.
Increase the minimum wage to £15 an hour as soon as possible – by returning the UK to normal wage growth and having a more ambitious minimum wage target.
Social security that prevents poverty – universal credit and benefits should be raised to 80 percent of the national living wage, along with a significant boost to support for families with children.
Commenting on the Prime Minister’s decision to end the moratorium on fracking, Tom Fyans, director of campaigns and policy at CPRE, the countryside charity, said: ‘Giving fracking the green light is a hideous mistake.
“If the purpose is to tackle bank busting gas prices, it’s an exercise in futility. Even if we were to go full steam ahead on fracking, which nobody wants, least of all rural communities, it wouldn’t make a dent on the cost of energy anytime soon, or ever.
‘Any move to industrialise the countryside and belch yet more fumes into our carbon-soaked atmosphere will prompt a furious response from local communities, drawn out planning delays and nationwide protests. Hardly a proposal to keep families warm this winter, or lower bills in the future.
‘The new Chancellor got it right in March, when he said fracking “would take up to a decade to extract sufficient volumes — and it would come at a high cost for communities and our precious countryside.” Nothing has changed.
‘Proposals to offer local people discounts on their bills in exchange for environmental destruction on their doorsteps need to be seen for what they are – a feeble attempt to bribe vulnerable rural communities to accept an unpopular, unsafe and polluting process that will destroy their tranquility. Local communities need to make their voices heard loud and clear – they were right to resist before and should continue to do so.
‘The answer to the fossil fuel price crisis is to reduce usage with a mass insulation drive, alongside a clean energy sprint. There has never been a better time to transform our energy infrastructure to ensure a future of abundant green power.
‘Renewables are around nine times cheaper and far quicker to plug in than any alternative. Families facing the biggest drop in living standards on record need renewable energy to become the central pillar of a modernised energy system. And they need it to happen fast.’
A LEADING property association has praised the Government’s package of measures to help those unable to afford rising energy costs.
The National Association Of Property Buyers said the Prime Minister’s “swift and decisive intervention” would help many.
Spokesman Jonathan Rolande said: “Looking at the energy and inflation crisis from the perspective of the property market, we welcome the swift and decisive intervention by the government to help households and businesses with the cost of energy by capping annual expenditure at an average of £2500.
“The impact of higher increases jeopardised so many facets of the economy it was almost impossible to over-exaggerate the terrible consequences there might have been – bankruptcies, unemployment, increased inflation, a house price crash – all were very possible.
“Bills and inflation still look set to rise. Interest rates may well do so too. But the cliff-edge has, for now, been avoided. Businesses and homeowners now have certainty about their budgets and can plan accordingly.
“There will of course be a price to pay, perhaps with higher bills or taxes in the future. But today at least, homeowners, businesses, charities and everyone in the property sector will be breathing a huge sigh of relief.”
Under proposals outlined today, a typical household energy bill will be capped at £2,500 annually until 2024.
The huge support scheme could cost up to £150bn, but Ms Truss refused to put a figure on it, saying “extraordinary times call for extraordinary measures”.
Businesses will get support, with bills capped for six months, a shorter period of protection than many had hoped for.
The help will be for everyone in England, Scotland and Wales with equivalent help for Northern Ireland.
But there are concerns the measures are not targeted enough, with no additional support for the most vulnerable. As a result, millions are still expected to be in fuel poverty this winter.
The energy price cap – the highest amount suppliers are allowed to charge households for every unit of energy they use – had been due to rise to £3,549 in October.
To limit the amount customers’ bills go up by, the government will compensate energy firms for the difference between the wholesale price for gas and electricity they pay and the amount they can charge customers.
The final cost of the scheme will depend on the cost of energy on the international energy markets, which can be extremely volatile.
The money to cover the support will be borrowed by the government, adding to the UK’s already large debt pile.
