The cap set by the Government’s Energy Price Guarantee is increasing, with average bills to go up from £2,500 a year to £3,000 a year. The impact from this will be made worse by the fact the final instalment of the £400 energy bills discount is going out in March.
Express.co.uk spoke to Emma Lower, CEO of Lendology, to get her tips on what people can do to get ready for the energy bills hike.
She said: “Many people think installing solar panels or insulation are the only way to reduce their bills.
“These measures are great but people should also look at a ‘fabric-first’ approach, ensuring a house is as draught-proof as possible, windows and doors are double or triple glazed, and you have an efficient central heating and water heating system.
“Once these items are top-notch is when people should look at larger items such as solar panels.”
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She urged consumers to take action “as soon as possible” with the bills hike just weeks away.
Adding to the energy bills increase is the fact council tax bills are going up by five percent in many areas, and broadband and mobile bills are also increasing in April.
Ms Lower spoke about the importance of people thinking about the energy efficiency of their property.
She said: “With the warmer weather of spring, people may forget the cold and dark days of winter but this is the best time to start thinking about energy efficiency in the home.
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“The Energy Saving Trust has lots of free online advice about how to reduce your energy bills.
“There are many organisations providing free home visits to review your energy usage and provide tailored support based on the needs of your home and your household. You can locate reputable groups by contacting your local council.”
However, many analysts are predicting energy bills will eventually drop over the coming months.
As reported by The Telegraph, Investec is predicting energy bills will go down to £2,165 a year from July, as the cap set by regulator Ofgem drops.
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Researchers at the firm calculated the Ofgem price cap, which currently works out at £4,279 a year in average bills, will decrease to £3,332 in April.
This means with the Government’s £3,000 Energy Price Guarantee, the Government will be paying on average £332 per household as part of the policy.
Previous data published by Cornwall Insight predicted energy bills would fall to around £2,200 a year from July, and that bills would stay at this level until the end of the year.
The group said: “Our forecasts show prices in the second half of 2023 remaining below the Energy Price Guarantee (EPG) level, and therefore will not cost the Government any money from July.
“With wholesale prices still well above pre-pandemic levels, the lower cost of the scheme is likely to spark conversation on the additional energy bill support the Government may now be able to offer households.”
However, the experts at Cornwall Insight warned consumers that due to current market volatility, average bills from July could range anywhere between £2,421 and £1,981 in July.
The firm said: “While the energy market outlook has improved markedly from last year, with a mild winter and higher storage levels in Europe causing substantial falls in wholesale rates, prices remain very volatile.
“The price cap setting for beyond the summer of 2023 is still a fair distance away, and we would expect wholesale prices to move daily before those cap levels are set, so any forecasts should be viewed in that context.”
