The UK Prime Minister Liz Truss, has recently revealed the first major policy announcement in her new position, aimed at safeguarding the UK public from soaring energy prices; a big factor in the ongoing cost of living crisis. The price cap had previously been due to increase to £3,549 for typical household use, leaving many people worried about where they could find the money to bridge the financial gap.
Under the new plans a household can now expect a typical energy bill to be capped at £2,500 for a minimum of two years, from 1 October 2022.
You should also receive a £400 energy rebate, taking your average payment to £2,100 a year.
Prior to this price cap, an average use household paid £1,971 per year, compared to £1,277 last winter, therefore annual bills will still be considerably more than this time last year.
It is important to note that the £2,500 limit is the maximum a household with “average use” would pay. Households with heavy energy use can expect to pay more, therefore energy bills will vary depending on your usage.
As part of the proposed plans to ensure an energy supply long term, Liz Truss is launching new oil and gas licensing for the North Sea and intends to lift the 2019 ban on fracking.
This has come under criticism as to meet climate goals, a shift to renewable energy is desperately needed.
Liz Truss commented, “We are facing a global energy crisis and there are no cost-free options”.
We need to look at cost on two separate levels:
Whilst energy bill prices are so volatile, there has never been a better time financially to move over to renewable energy.
Clean, green energy can save your household money by reducing the cost of your energy bills. This can help protect you from price fluctuations that seem inevitable in the near future, as demand for energy increases and non-renewable sources are depleted.
This could mean you see even more significant savings from going solar.
If your system produces more energy than you require, you can sell it back to the grid!
Investing in renewable energy sources such as solar panel installation can reduce your carbon footprint.
Solar panels gather energy from the sun. This energy source is not about to run out any time soon, therefore we call this a renewable source, unlike fossil fuels which have a limited and depleting supply.
Solar energy has zero emissions, meaning you are not producing any greenhouse gases which contribute to global warming.
To round up: