Ofgem, the energy regulator, will announce the new price cap on Friday, August 26 and industry analysts are predicting it to be nearly £1,800 higher than the current one of £1,971. Auxilione’s latest figures suggest that the price cap will rise to nearly £3,600 from October 1, putting even more pressure on already stretched household budgets to keep on top of gas and electricity bills.
It is a forecast that will pile pressure on the UK Government to take faster action, but unless Parliament is recalled early from summer recess, nothing will be put in place until September 5 when the country will have a new prime minister. The observation window - when regulator Ofgem tracks the market to decide what the cap will be - closed last Thursday, so the prediction should be fairly accurate.
Auxilione said its final prediction is that Ofgem will set the cap at £3,576 per year for the average household on a standard tariff. They also believe the price cap will hit £4,704 next January and a stomach-churning £5,856 in April.
However, while price cap predictions may be terrifying, households can still take plenty of measures to ensure they are only using the energy they need.
It pays to remember that although individual savings might look relatively small, they can add up to significant savings across a year.
Check your boiler settings (save £200 a year)
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.
Use the controls on the front of your boiler - not your room thermostat - to set the flow temperature for the boiler, which is the temperature your boiler heats the water to before sending it off to your radiators.
The way you adjust the flow temperature and the display information available varies a great deal.
There is a step-by-step online guide 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 or windy days hang clothes outside to dry instead and invest in a drying rack for cooler months.
Use your washing machine on a 30C cycle and reduce use by one run a week. Only run your dishwasher when it is full and use eco settings if possible.
Switch off and unplug (save £55 a year)
Households should by 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’re not 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.
Avoid overfilling the kettle (save £19 a year)
It’s a common tip, but 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 does not 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 lights off when you are not using them or when you leave a room.
Replacing all the lights in your home with LED bulbs could help save even more.
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 with band C.
Energy Saving Trust also says that for those keen 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.
Word of warning
It’s also worth noting that turning boilers off is not advisable or an effective way to save energy. Instead, thermostats and timers should be used effectively to regulate their operation.
Fridges and freezers are designed to be kept on all the time and energy will not be saved by turning them off for short periods because more energy will be used to cool them down again when turned back on. There are also important safety issues that can arise if food partially defrosts before it is prepared for eating.
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