The Chancellor of the Exchequer, Jeremy Hunt recognised the global energy crisis and cost of living pressures, and confirmed a new version of the Energy Price Guarantee in an attempt to address huge rises in wholesale energy prices.
The Energy Price Guarantee is a policy which aims to protect UK households by limiting the unit price paid for gas and electricity.
Currently typical energy bills for dual tariffs have been capped at £2,500.
Support at this level will be scaled back from April next year to £3,000 for a typical household’s annual bills, although your bill will depend on how much gas and electricity you use; the more you use, the bigger your bill will be.
As the price cap will rise from £2,500 to £3,000, you will see an increase in the average annual bill of around £500 .
This winter, households are also receiving a £400 rebate to help with energy costs. This is applied in six monthly instalments administered by energy suppliers.
Hunt did not mention continuing this after April 2023, meaning that rates will increase at the same time the energy discount payments stop, therefore monthly payments will be higher.
Cost per unit at this time is still currently unknown, so cost predictions cannot be reliably made. Energy price fears coupled with food price inflation and higher mortgage costs have left many UK citizens very anxious.
Not only is the price of energy a concern, but energy shortages are now a very real worry.
The National Grid have warned the UK could face blackouts this winter if suppliers are unable to run due to the energy crisis.
Short, rolling regional power outages would be a last resort if energy supplies run too low, and would likely be imposed on very cold days between 4pm and 7pm, to ease the strain on the grid.
As government support is only for a limited time, and wholesale energy prices are unlikely to decrease due to ongoing energy supply issues, many of the UK public are understandably feeling anxious and uncertain of how to finance and manage their energy usage in the near future.
This is leading many people to investigate more affordable and secure energy supplies, i.e., renewable energy you generate yourself.
By installing solar panels, also known as photovoltaics (PV) to your property, you can produce electricity for yourself, rather than being solely reliant on an energy supplier.
PV cells capture the sun’s energy, converting it into electricity even on cloudy days, meaning you can save money on your energy bills all year long.
PV cells respond at their optimum with maximum light intensity rather than heat.
In fact, heat can reduce output efficiency, so the UK’s cooler, more temperate climate is ideal.
You may wish to consider investing in a battery to store solar energy produced, but not used, during daylight hours for use in the evening.
If you opt into the Smart Export Guarantee , you can sell surplus electricity back to the National Grid.
As the benefits of renewable energy has never been clearer for UK homeowners, the demand for solar installation has massively increased.
f you are thinking of moving over to safer, cleaner, affordable, reliable solar energy, why not call AW Electrics today?
Our friendly team can answer your questions and let you know our installation availability.
The start of your green journey to cut energy bills and your carbon footprint is just a phone call away.
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