How to Survive the Energy Price Increases in 2022

Energy prices have drastically risen within the last year, affecting many households in the UK.

And more increases are set to come, as Ofgem announced an increase in the energy price cap to reflect wholesale prices beginning in April 2022. The average energy bill will now increase to approximately £2000 after Ofgem raised the energy price cap by £693.

This article is written to empower homeowners with advice on how to survive the energy price increases.

Why are energy prices rising?

Ofgem states that the increase is largely influenced by the rise in global gas prices, with wholesale prices quadrupling in the last year.

What is the new energy price cap?

The energy price cap was unveiled in January 2019, which sets the amount of money that energy companies are allowed to charge customers for gas and electricity each year. The price cap is reviewed every 6 months by Ofgem and is kept in alignment with wholesale energy prices.

How can you overcome energy price hikes?

1) Make your home more energy efficient

The best way to minimize the impact of rising energy prices is to look at ways to make your home more energy-efficient. By obtaining an Energy Performance Certificate (EPC), your home will be given an energy rating from A-G (with A being the most energy efficient). You’ll also be advised on what changes you can make to reduce energy consumption.

Such changes may include: upgrading your windows to double or triple-glazed; replacing your current boiler with a more energy-efficient one; or improving the insulation in walls, flooring, and the roof. You should consider purchasing newer modern appliances that have a higher efficiency rating. Or change how you operate your appliances, for example, limiting the number of times you use the dishwasher or washing machine.

Other habits you could change include: switching off lights when you leave a room; switching off electronic appliances instead of leaving them on standby; spending less time in the shower and turning the tap off when brushing your teeth. Ultimately, simple changes can amount to bigger savings in the long run.

2) Switch energy providers

Now could be a good time to consider whether you could obtain a better deal and save money with another provider.

3) Prepare Your Budget

By considering the price increases now, you can plan ahead to ensure you have enough money to afford your energy bill. This may mean cancelling subscriptions to services that you don’t need or use very much. Or simply saying no to those takeaway coffees and eating out at restaurants less often.

It’s difficult to avoid the impact of energy price increases. however, there are still many changes households can make that will contribute to driving down the energy bills.