Ofgem to announce price cap rise

Environmental scientist, Angela Terry, responds to what is expected to be steepest ever increase in household energy bills

Ofgem is announcing details of the energy price cap hike today (Thursday 11am). The price cap is expected to rise by more than 50 per cent to almost £2,000 a year up from an average of £1,277 this winter.

It is expected to be the steepest ever increase in energy bills and is a result of high gas prices across the globe caused by increased demand and supply issues.

The Government is considering a measure to cut £200 from household energy bills in response to the huge cost increase.

The new price cap takes effect in April with another price revision due in October.

Angela Terry, environmental scientist and founder of climate action website One Home, said:

“This price rise is the first of 2022 but there’s more to come and prices are only going one way – upwards. The UK’s biggest energy supplier, Centrica, has said that soaring energy prices could last up to two years.

“We can’t control the cost of energy but we can control how much we use in our homes. The most important action we can all take is to insulate. It is a ‘fit and forget’ solution that saves money, improves the value of your home and cuts carbon pollution.

“While there continues to be limited Government financial support for fitting insulation, it’s largely down to homeowners and landlords to do it themselves.

“The good news is that many of the big banks are offering zero interest loans so people can get this work done. For low income households, there are various grants and payments that are available to help people with energy efficiency measures and paying your bills.

“Go to the Simple Energy Advice website to find out what you are eligible for. You can also ask your energy supplier if you are eligible for support through the Energy Company Obligation (ECO), which obligates medium and large energy suppliers to fund the installation of energy efficiency measures. Eligibility depends on whether you receive certain benefits.”

Angela’s top tips for ‘fit and forget’ solutions:

• First step: insulate your loft to a depth of 30cm. Insulating a typical British home can save around £300 a year on energy bills.
• Heating controls: keep temperatures to 19C and lower heating levels in rooms you don’t use.
• Draft proofing is simple and quick. Plug gaps around doors and windows with foam or copper strips.
• Secondary glazing is an instant way to achieve double glazing with just a few pounds and a hair dryer. Simply fix double sided tape to the window frame, attach the cling film sheet across the window and cut to size. Use a hair dryer to remove the creases.
• Get a smart meter fitted for free by your energy supplier. It will give you accurate real-time information on how much energy you are using and will encourage you to be more careful with your energy use.
• If you’re in rented accommodation, ask your landlord to help with these measures. If your rented home has an EPC rating of F or G, they are legally obliged to improve the standard.

There are many more steps you can take. Go to the One Home website to find out more.

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