The cap on energy bills could top an unprecedented £5,000 next year, according to the bleakest forecast yet for struggling households. Experts said that at Wednesday’s energy prices they expect that regulator Ofgem could be forced to set the cap at £5,038 per year for the average household in the three months beginning next April.
It is more than £200 higher than previous forecasts, which were already grim, and heaps extra pressure on households across the UK. Auxilione, an energy consultancy, also predicted that bills would reach £4,467 in January.
This forecast is likely to worry energy users more than April’s higher number, as households use more gas during the winter months. As it stands, the nightmare scenario would mean that an average household will spend £571 on energy in the month of January.
The price cap on energy bills is calculated based on average household use. If you use less energy, then your bills will be lower.
Ofgem said: “The wholesale market continues to move extremely quickly so no forecast for next year is at all robust at this stage and will therefore have very limited value, especially for consumers who must always be the main priority.
“We cannot stop others from making predictions but we would ask that extreme caution is applied to any predictions for the price cap in January or beyond.”
It comes as Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng press Britain’s utility companies for a solution to the soaring bills at a meeting in Downing Street.
For millions of households across the country, the final few weeks of summer before the temperature starts to drop are the last chance to make real changes to energy habits around the home that could help cut costs come the October price cap.
Home energy-saving checklist
Switch off and unplug
Households should now have done a complete check of every power outlet, unplugging anything that is not necessary and turning devices off standby mode - and getting into the habit of doing this regularly.
Energy Saving Trust calculates that you can save around £55 a year just by remembering to turn your appliances off standby mode.
Almost all electrical appliances can be turned off at the plug without upsetting their programming. You may want to think about getting a standby saver or smart plug which allows you to turn all your appliances off standby in one go.
Check the instructions for any appliances you aren't sure about. Some satellite and digital TV recorders may need to be left plugged in so they can keep track of any programmes you want to record.
Check your boiler
A recent report by the Heating and Hot Water Council found that households can save around 6% to 8% on their gas bill just by turning down the heating flow temperature on their condensing combi boiler.
Doing this will allow the boiler to run more efficiently and could save around £200 off an average energy bill.
You need to go to the controls on the front of your boiler. To be clear this is not your room thermostat, this sets the flow temperature for the boiler.
The way in which you adjust the flow temperature and the display information available varies a great deal. There is a handy online guide on how to do this at theheatinghub.co.uk.
Another easy saving is to turn off the pre-heat mode on the boiler, which could mean hot water taps taking longer to heat up, but could save hundreds of pounds a year.
Forget about your tumble dryer and use other appliances wisely
Tumble dryers are massive energy drains, so on warm days hang clothes outside to dry instead and invest in a drying rack for cooler months.
Use your washing machine on a 30-degree cycle and reduce use by one run a week. Only run your dishwasher when it is full and use eco settings if possible.
Avoid overfilling the kettle
It's an old one, but very true - only boil the amount you need.
Defrost your fridge and freezer
Remember to regularly defrost your fridge and freezer as the more they ice up, the more energy they will use.
A full freezer is more economical to run. With a full freezer, the cold air doesn't need to circulate as much, so less power is needed. If you have lots of free space, half-fill plastic bottles with water and use these to fill gaps. BBC Good Food suggests you fill the freezer with everyday items you are bound to use, such as sliced bread, milk or frozen peas.
Turn off lights
Turn your lights off when you're not using them or when you leave a room. Replacing all the lights in your home with LED bulbs could help you save even more.
Keep windows closed during hot weather
The obvious thing to do when homes warm up is to open all the windows. However all this does is fill the house with hot air.
It's best to use blinds and curtains to block direct sunlight during the day and then open the windows at night when temperatures drop, helping you to save energy by reducing the need for power-hungry fans.
Use fans sparingly and wisely
Fans, even when used on cooling settings, will send bills soaring. While you shouldn't stop using them when necessary, there are ways of maximising their effect and cutting the time they are switched on.
Putting fans at floor level helps to circulate the lower cold air rather than the warmer air that naturally rises in a room. You can also create the ideal combination for energy saving by pairing smart fan usage with closed windows, keeping the fans working during the day and the windows open at night.
Invest in insulation
New analysis by the Energy and Climate Intelligence Unit has found homes rated band F on the Energy Performance Certificate (EPC) system, a measure of the home's efficiency, are set to have a gas bill £968 higher than a home rated EPC band C, the Government's target for 2035.
The average home in the UK is rated band D and these homes will pay £420 more for their gas this winter, compared to an EPC band C home.
Energy Saving Trust also says that for those wishing to future-proof their homes, investing in professional draught-proofing and insulation in preparation for the winter months could lead to a reduction in bills by £405 for a semi-detached home. DIY draught-proofing is much cheaper and anything is better than nothing.
Installing solar panels for a similar property could lead to additional annual savings of around £450. A quarter of heat in an uninsulated home is lost through the roof. Most homes have at least some loft insulation but often not enough. Topping up from 120mm to at least 270mm of insulation will help.
Get free advice from Home Energy Scotland
If it’s time to think about some new heating, long-term draught-proofing or insulation you can get free impartial advice from Home Energy Scotland.
It can also help you access financial support worth up to £5,000 for getting the work done.
If you need help or advice about heating your home or rising energy bills, visit the Home Energy Scotland website here or call the Home Energy Scotland helpline on 0808 808 2282.
To keep up to date with the most-read money stories, subscribe to our newsletter which goes out three times each week - sign up here.
READ NEXT
-
New £400 October energy discount guide includes payment dates for all account types
- Energy pre-payment meter customers must check three details to ensure they get £400 discount
-
People on certain benefits or low income can get fibre broadband for £15 each month
-
People on a low income may qualify for cash support from their local council
-
DWP loans worth up to £812 for people claiming certain benefits can be repaid over two years
