Ways to Save Money on Your Energy Bills
Many of us will see our household electricity and gas bills almost double in April 2022 pushing households’ monthly budgets to the limit. It has been estimated around 18 million households will see an average increase of £693 per year. Customers on fixed rates will not see the increase until their current deal ends.
Why Have Energy Prices Gone Up?
A worldwide squeeze on energy supplies has pushed the price of energy prices up to an unprecedented level. Many factors have contributed to the price increase:
Cold winter in Europe 2020/21 reduced the amount of gas stored
Windless summer in 2021 made it difficult to generate wind energy
Increased demand from Asia for liquefied natural gas supplies
Increase in demand as lockdown restrictions ease across the globe
Fire at National Grid site in Kent knocked out power cable that runs between England and France that is used to import electricity. Isn’t expected to be fully back up and running until 2023
UK has the lowest gas reserves in Europe, roughly 2% of the UK’s annual demand. Other European countries have as much as 37% in Europe’s four largest storage holders
Delays and complications to the Nord Stream 2 pipeline which would deliver 55 billion cubic metres of gas a year directly from Russia to Europe bypassing Ukraine
Ukraine conflict and Russian sanctions have disrupted supply from Russia which contributes more than 40% of gas imports to Europe. Although the UK does not import gas directly from Russia, the UK does import electricity from Europe
85% of homes have gas central heating and gas generates a third of the UK’s electricity The above reasons have put a strain on gas and electricity supplies in the UK. Especially when the majority of gas and electricity is imported from Europe. As the UK look towards sustainable energy generation through wind, solar, and nuclear means, they will need to consider a contingency if they fail to generate enough energy to meet demand.
How to Reduce Energy Consumption?
There are many things you can do to reduce your energy consumption. Here are some things are you can do:
Turn off standby appliances – By turning off your appliances at the plug can save you an average of £30 per year. You can start using smart plugs such as the TP-Link Tapo Smart Plug to enable you to manage your appliances from your smartphone. You can set a schedule to turn on or off certain devices at certain times.
Smart Thermostats – Installing a smart thermostat like the Google Nest Learning Thermostat can save you around £75 a year. Smart thermostats will learn how long it takes to heat your home and can set the right temperature at the right time. An added function a smart thermostat gives is the ability to control your home heating via your phone. You will be able to come home to a warm home.
Turn Down Your Thermostat – Turning your thermostat by one degree could save you £80 a year
Buy Energy Efficient Appliances – swapping old appliances for energy-efficient appliances rated A+++ will save you money in the long run. Swapping your light bulbs to LED bulbs will cut down energy usage as well.
Washing Clothes at a Lower Temperature – Washing clothes at 30 degrees rather than 40 degrees can help reduce energy usage and cutting one wash cycle per week can help reduce energy usage even more.
Summary
As energy prices look to double, we will see the extra strain on our finances, so it's time to re-evaluate our expenditures and see where we can save. The suggestions made above can contribute to making small saves where you can. Energy bills are expected to increase further in October going into 2023 when a review of the energy price cap will be undertaken. As energy supplies continue to be disrupted, we will see our energy prices fluctuate a lot throughout the year. Let's see what happens in 2023 and hopefully all the issues listed are resolved to reduce strain on our finances. Check out Ways to Reduce Your Carbon Footprint to go further and help the environment.