Why are we seeing rising energy prices?
With the latest bills that drop on our doormat or into our emails making a more significant dent than usual, homeowners and renters all over England are asking why are we seeing rising energy prices and when can we expect this to stop. Energy prices initially spiked when Russia invaded Ukraine. This was due to concerns over the energy supply from Russia. As the conflict between these two countries and the rest of the world continues, there is still concern over supply, but this has been worsened by issues with Nord Stream 1 – the pipeline that channels natural gas from Russia to Europe. The pipeline is currently working at 20% after it was reduced to 60% for general maintenance and then by a further 20%.
Energy prices rely heavily on current supply and demand, and the lack of availability has seen prices rise astronomically. The rising energy prices are pushing up costs for businesses and homes and driving inflation increase. It has been predicted by Chris O’Shea, Chief Executive for British Gas, that these rising prices are not going down anytime soon, and we could be faced with a continued rise for the next 18-24 months.
How will the cost of living package help rising energy prices?
To try and support homes with rising energy prices, Rishi Sunak, chancellor, has announced a support package that is aimed at helping households with rising energy bills. Every household will receive at least £400.00 to help with prices. Originally, this was offered as a £200.00 loan to every home, but it has since been changed to a grant, meaning it won’t have to be paid back. So how will that look for a different home?
Prepayment meters – you will receive the money either as a voucher or as an automatic top-up on your meter.
Direct Debit / Credit – the money will automatically be put in your bank account or added as a credit to your monthly bill.
Alongside the £400, if you are eligible for certain means-tested benefits, you will also receive a £650.00 cost of living payment that will be paid in two instalments. You should have received your first instalment in July, and your second instalment is due in the Autumn. For those at state pension age or older and receiving the winter fuel payment, an extra £300.00 will be added to your annual payment. This will be sent automatically, and you don’t need to apply.
Lastly, for those who receive certain disability benefits, you will also receive an extra £150.00, which won’t affect your current benefits. This will be received in addition to the £650.00 cost of living payment if you qualify.
Futureproofing your home from rising energy prices
If you are worried about the continued rise of the cost of living and the associated rising energy prices, you may be considering how to improve your home electrics and futureproof your bank account from further rising costs. We have some top tips for you to consider to help with your monthly bills:
Making sure your walls, roof and floors are insulated efficiently will help to reduce the cost of your rising energy prices. Many homes in the UK lose a lot of their heat through walls and roofs, so insulating these elements will help to keep your heat in and the cold out! The loft is a great place to start, along with insulated hot water pipes.
Upgrade to energy-efficient appliances
If it’s time you upgraded some of your larger appliances, we recommend switching to an energy-efficient choice. A relatively low-cost way of saving energy, the more efficient your devices, the less power they will need to run. To find out how efficient your appliance is, take a look at the label and compare it to other appliances.
Generate your electricity
Installing a renewable technology system at home can sound a little daunting, but the benefits far outweigh the initial investment. Solar panels are a great way to reduce your reliance on fossil fuels, and if you are generating more electricity than you need, you could even be paid for the excess energy that goes back into the grid.
Take a look at heating controls
Stop using more heating than you need. Take control of heating your home by installing a heating control. Paying attention to your controls and only heating the rooms you need when you need them could save you a considerable amount on your energy bills.
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BES Electrical helps homes reduce their rising energy prices
With many homes across the UK trying to cut back and make cost-effective changes to keep up with rising energy prices, BES Electrical is here to support those who are looking to make changes in their home for the better. Our team of qualified domestic electricians understand the pain a larger bill can bring to a family, and with our cost-effective high-quality services, we aim to make your home as energy-efficient as possible.
If you are looking for ways to improve the energy efficiency in your home and combat continued energy prices, get in touch with BES Electrical today and have a chat with our friendly team about the difference we could make.