Prepare for Higher Energy Costs: Top Tips to Save This Winter

As we enter the colder months, households across the UK are preparing for rising energy costs, exacerbated by Ofgem’s announcement of a 10% increase in the energy price cap, effective from October 2024. This change means the average dual-fuel household will see their annual bills rise to £1,717, a jump of around £12 per month compared to previous rates. The hike reflects shifts in the global energy market, including volatility in wholesale gas prices, continued geopolitical tensions, and supply chain issues. 

 While the price cap still protects consumers from excessively high charges, it is not an absolute limit on what you can be billed. It simply controls the rates suppliers can charge per unit of electricity and gas. The final amount you pay will depend on your household’s consumption. Now is the perfect time to explore ways to reduce energy consumption, improve efficiency, and minimise the impact of rising bills. 

Understanding the Price Cap Increase 

 The energy price cap is set by Ofgem, the UK’s independent energy regulator, and is reviewed every three months. It serves as a safeguard for households on default tariffs, ensuring that energy suppliers cannot charge more than the cap allows per unit of energy used. However, the price cap does not apply to customers on fixed tariffs. 

The rise in the cap this October is largely driven by increases in the wholesale cost of energy, which makes up the largest portion of your energy bill. Other factors that have contributed to the price cap hike include higher operational costs for suppliers and network maintenance.  

For many households, particularly those already struggling with high living costs, this will add further financial strain. However, there are several steps you can take to keep your energy bills as low as possible and reduce your usage this winter. 

Shop Around for the Best Energy Tariff 

One of the simplest ways to manage rising energy costs is to compare and switch tariffs. Although most suppliers have adjusted their rates in line with the new cap, it’s still worth shopping around to see if a fixed-rate deal offers better value. Comparison websites are an excellent tool for this, as they allow you to see a range of options at a glance. 

Some suppliers are offering competitive fixed-rate tariffs, which might shield you from future price hikes. However, be mindful that not all fixed deals are cheaper than the price-capped default rates, so read the terms carefully. 

Maximise Your Heating Efficiency 

Heating accounts for a significant proportion of most households' energy bills during the winter months. To ensure you’re getting the most out of your system: 

• Bleed your radiators: Air can become trapped in your radiators, which reduces their efficiency. Bleeding them regularly allows them to heat up fully, ensuring even heat distribution. 

• Install thermostatic radiator valves (TRVs): These valves allow you to control the temperature in each room individually. Rooms that aren’t used as often, such as spare bedrooms or storage areas, can be kept cooler, which reduces the overall heating load. 

• Lower your thermostat: Dropping your thermostat by just 1°C can cut your heating bill by up to 10%. Aim for a comfortable range of 18°C to 21°C and use layers and blankets to stay warm without needing to crank up the heat. 

• Upgrade your boiler: If your boiler is over 10 years old, it may be worth considering a replacement. Modern condensing boilers are far more energy-efficient and can significantly reduce your gas consumption. 

Insulate Your Home 

A well-insulated home is critical for keeping energy bills down, as it helps keep heat, meaning your heating system doesn’t need to work as hard. Here are some key areas to focus on: 

• Loft insulation: Heat rises, and around 25% of your home’s heat loss occurs through the roof. By installing effective loft insulation, you can reduce this significantly, keeping your home warmer for longer. 

• Wall insulation: Around 35% of heat is lost through the walls, especially in older homes with solid walls. If you have cavity walls, ensure they are properly insulated. For solid walls, consider investing in internal or external insulation. 

• Draught-proofing: Gaps around doors, windows, and chimneys allow warm air to escape and cold air to enter. Draught-proofing these areas can make a noticeable difference in keeping your home’s warmth. 

Many homeowners may be eligible for government schemes, such as the Great British Insulation Scheme, which provides grants and support to improve home insulation. Check if you qualify for any funding or discounts. 

Embrace Energy-Efficient Appliances and Habits 

Modern appliances are designed to be much more energy-efficient than older models. If your budget allows, consider upgrading to energy-efficient options, particularly for high-consumption appliances like washing machines, tumble dryers, and fridges. Always look for the energy efficiency label and choose A++ rated appliances, which use less electricity. 

Here are some other energy-saving habits you can adopt: 

• Use appliances wisely: Only run dishwashers and washing machines with full loads and use eco settings whenever possible. 

• Unplug devices: Many electronic devices continue to draw power even when they are turned off. Unplug devices when not in use or use smart plugs to cut off power to multiple devices at once. 

•  Use energy-efficient light bulbs: LED bulbs use up to 90% less energy than traditional incandescent bulbs and last much longer. 

Take Advantage of Off-Peak Energy Rates 

If your energy supplier offers time-of-use tariffs, you can save by using energy during off-peak hours, typically late at night or early in the morning. Appliances such as washing machines and dishwashers can be programmed to run during these cheaper periods, reducing your electricity costs. Make sure to check your supplier’s off-peak times and adjust your usage habits accordingly. 

Monitor Your Energy Use 

 Many energy suppliers offer smart meters that help you track your energy consumption in real time. Having clear visibility of your daily usage allows you to find areas where you can cut back. In addition, some suppliers offer personalised energy-saving tips based on your usage patterns. 

Seek Government Support and Assistance 

If you are struggling to pay your energy bills, several government schemes and support options are available to help: 

• Winter Fuel Payment: A one-off payment of £100 to £300 is available to those born on or before 5th January 1953. 

• Cold Weather Payment: If temperatures in your area drop below freezing for seven consecutive days between 1st November and 31st March, you may be eligible for a payment of £25. 

• Warm Home Discount: This scheme offers a discount on electricity bills for those on a low income or receiving Pension Credit. The amount for winter 2024-2025 is £150. 

• If you’re concerned about keeping up with payments, contact your energy supplier to discuss flexible payment plans or other support options. 

Final Thoughts on Reducing Energy Bills This Winter 

While the energy price cap increase will affect many UK households, there are several steps you can take to reduce your energy consumption and keep your bills under control. By shopping around for better tariffs, improving your home’s insulation, and adopting energy-efficient habits, you can minimise the impact of rising prices and keep your household warm and comfortable this winter. 

Implementing these strategies can go a long way towards lowering your energy bills and mitigating the impact of the price cap rise this winter.