As energy prices continue to rise, households across the UK are looking for ways to navigate rising energy costs and reduce their bills.
Energy regulator Ofgem has announced the energy price cap will increase by 6.4% in April. The price cap – which sets a maximum rate per unit and standing charge that can be billed to customers for their energy use – will rise by £111 per year or around £9.25 a month. This equates to an annual bill of £1,849 for a typical household.
This change is attributed to rising wholesale costs and inflation, with the new price cap set to impact 22 million homes across the UK. The increase is bigger than originally forecasted and marks the third consecutive hike for the energy price cap.
The price cap limits the amount suppliers can charge per unit of energy but does not cover the total bill, so what you pay depends on your household’s energy use.
As energy costs continue to climb, now is the perfect time to consider how you can navigate rising energy costs and explore options to better manage your expenses.
The Future of Energy Prices
While energy prices are higher than pre-pandemic levels, they are still below the peak reached in 2022 because of the war in Ukraine. While analysts suggest that prices could dip in the second half of 2025 (around July), one thing remains clear, the energy market remains changeable.
Managing Energy Use to Keep Costs Down
- Adjust Your Boiler Settings: If your hot water temperature is too high, turn the boiler down. This can help you save on energy costs without compromising comfort.
- Seal Draughts: Managing draughts is a simple but effective way to keep heating costs down so check for gaps and draughts around your home.
- Upgrade to Energy-Efficient Appliances: Consider replacing old appliances with energy-efficient models. Look for those with an Energy Star rating or the new EU energy label. Dishwashers, fridges, and washing machines can use a significant amount of energy, and upgrading to a more efficient model can save you money in the long run.
- Insulate Your Home: Proper insulation in your home, especially in the loft and walls, can prevent heat loss during the colder months. Insulating your home not only keeps you warm but also reduces the amount of energy needed to maintain a comfortable temperature helping to navigate rising energy costs.
- Switch to LED Lighting: LED bulbs are more energy-efficient than traditional bulbs, using up to 75% less energy and lasting much longer. Switching to LEDs can reduce lighting costs significantly over time.
Other Options?
With energy bills continuing to rise, many consumers are considering their options to navigate rising energy costs. Ofgem has suggested that households looking for certainty in their payments should explore fixed tariffs. A fixed tariff can lock in current rates and provide peace of mind, especially if price volatility makes you nervous.
How We Can Help Navigate Rising Energy Costs
At AES, we understand how rising energy costs can impact your household. As part of our ongoing commitment to helping customers save on energy costs, we offer a range of solar and renewable heat solutions. These can help reduce reliance on the grid for greater energy independence and lower energy bills, offering significant savings over time and peace of mind.
Solar Power
Solar energy allows you to generate your own power and in turn, reduces your reliance on the grid. With solar PV panels on your property, you can generate energy during the day to power your household appliances. When combined with battery storage, this energy can be stored for later in the day when the sun isn’t shining. This provides a high level of energy independence knowing your energy supply is in your hands. While the initial investment may feel significant, the long-term savings and independence are well worth it.
For homeowners who already have solar panels installed, the recent price hikes actually present an opportunity for an even faster return on investment (ROI). If you are currently using solar power but have not yet integrated a battery storage system, now is an excellent time to consider doing so to maximise your self-generation potential.
Heat Pumps
Since heating can make up a significant portion of your energy bill, it may be worth upgrading to an energy-efficient heating system like a heat pump. Thanks to our recent acquisition of Black Isle Renewables, we now offer heat pumps, a cost-effective solution for those looking to heat their homes more efficiently. Unlike conventional heating systems, which consume fossil fuels, heat pumps run on electricity and when paired with solar PV offer a sustainable way to meet your heating needs.
To Conclude
The beauty of renewable energy is that you are in control. By generating your own energy, you can navigate rising energy costs to avoid market instability, and over time, your system will pay for itself. It is an investment in your energy independence future, providing both financial and environmental benefits.
If you are interested in exploring renewable energy options or need assistance navigating this energy price increase, contact us today. We are here to help you take control of your energy future and navigate the energy changes ahead.
Simply email our Team or call 01309 676 911 to explore your energy independence options.
