What the new energy price cap means for you

From October, households across England, Scotland and Wales will see a 10% increase in gas and electricity prices. This rise comes at a time when many are already feeling the pinch from the cost of living. Exploring ways to save on your energy bills can help you navigate this challenging period.

What is the energy price cap?

The energy price cap is a limit set by the UK’s energy regulator, Ofgem, on the maximum amount that energy suppliers can charge customers for a unit of gas and electricity. The cap is designed to protect consumers from excessively high pricing, ensuring they pay a fair rate for their energy. It’s important to note that while the price cap limits the cost per unit, it does not cap your total energy bill.

From October, the energy price cap is increasing, leading to a 10% rise in the cost of gas and electricity.

What are standing charges?

In addition to the cost per unit of energy, your energy bill includes a standing charge. This is a fixed daily fee that you pay, regardless of how much energy you use. Standing charges cover the cost of supplying your home with energy, including maintaining the national grid, and other related costs.

 Are standing charges changing?

Standing charges are not changing under the new energy price cap. While exact figures vary depending on your location and energy supplier, standing charges are generally 60p a day for electricity and 31p a day for gas.

Should I fix my energy prices?

Locking in a fixed-price energy deal can provide peace of mind, however it’s important to consider the risks. If energy prices fall, you could end up paying more than if you had stayed on a variable tariff.

How can I save money on my energy bills?

With energy prices on the rise, taking steps to improve your home’s energy efficiency can lead to significant energy bill savings.

• Improve your home’s insulation
  Insulating your walls, loft, and floors prevents heat from escaping, meaning your home stays warmer for longer with less energy needed. Simple measures like draught-proofing windows and doors can make a huge difference. The less energy needed to heat your home, the lower your energy bills will be.
• Install solar panels
  Solar panels are one of the most effective ways to cut down on your energy bills. By generating your own electricity from sunlight, you can reduce your reliance on the grid. Over time, the energy bill savings can offset the initial investment in solar panels, making them a smart long-term choice. Additionally, with the current incentive of 0% VAT on solar installations, now is a great time to make the switch.
• Add home battery storage
  Adding a home battery storage system can maximise the benefits of installing solar panels. A home battery allows you to store excess solar energy generated during the day for use in the evening. This further reduces your dependence on the grid and ensures you get the most out of your solar investment. By using the stored energy during peak times and charging your batteries during cheaper, off-peak hours, you can avoid higher energy costs. You could even install home battery storage without solar panels to save money. Our range of home batteries can be run without solar PV, meaning you can charge them up with cheap, off-peak electricity to use in peak hours.
• Go electric
  To make the most out of a solar system with home battery storage, it makes sense to go electric. Gas central heating is rapidly becoming a technology of the past, as we move towards sustainable solutions and net zero. Installing a full HeatElectric system – solar PV with home battery storage, ELKATHERM® electric radiators and a Sunamp Thermino heat battery – means you’ll make the most of the sun’s free electricity. You could even heat your home for free!

Next steps

With the new energy price cap, it’s more important than ever to take control of your energy consumption and find ways to reduce your bills. By investing in a HeatElectric system now, you can significantly lower your energy bills while also contributing to a more sustainable future. Get in touch today to find out more about how we can help you save money on your energy bills.