- Ofgem raises energy price cap by 5% from £1,834 to £1,928 starting January 1.
- Financial advisor recommends simple adjustments such as switching to energy-efficient bulbs and optimising furniture arrangement for cost-effective efficiency.
- Cost-cutting tips include efficient appliance use, insulation investments, draught-proofing, billing optimization, hot water efficiency, and smart technology adoption.
Energy bills will rise again from January as hopes for relief from the cost-of-living crisis are put on hold. Ofgem announced its latest price cap on Thursday, which will increase by 5% (from the current £1,834 to £1,928) from January 1 for a typical dual fuel household in England, Wales and Scotland, the regulator has announced.
For those unable to make significant investments, smaller changes can still make a substantial impact, says finance expert Michael Charalambous from Invezz.com.
Swapping to energy-saving light bulbs, reevaluating furniture placement, and employing draft excluders contribute to efficient energy use without breaking the bank.
Appliance efficiency: Efficient use of appliances, like washing machines and dishwashers, can lead to substantial savings. Small adjustments, such as washing clothes at lower temperatures and running full dishwasher loads, contribute to cost-cutting.
Insulation matters: Investing in insulation, starting with cost-effective options like loft insulation, proves highly impactful. Proper insulation can result in significant savings, up to £250 per year in a semi-detached house.
Draught-proofing: Blocking gaps around doors and windows can save around £45 per year. Simple DIY measures, such as using draught-proofing strips and seals, contribute to a cosier home and reduced energy bills.
Billing optimization: Reviewing energy bills for small savings, switching to paperless billing, and managing accounts online can lead to cost reductions. Regular metre readings, especially with smart metres, ensure accurate billing.
Hot water wisdom: Efficient use of hot water, such as using heating controls for hot water tanks and installing eco-friendly shower heads, can lead to substantial savings.
Boiler efficiency: Regular boiler servicing and adjusting flow temperatures contribute to efficient heating. Lowering a combi boiler’s flow temperature can save 6-8% on gas bills.
Heating controls: Installing and optimising heating controls, including room thermostats and thermostatic radiator valves, can lead to significant savings of around £180 per year.
Energy-efficient appliances: Investing in energy-efficient appliances can result in substantial long-term savings. Running costs are crucial considerations, and energy-efficient models can save hundreds of pounds annually.
Smart technology adoption: Smart thermostats and energy-saving apps provide real-time insights and control over energy usage. Combining smart thermostats with thermostatic radiator valves enhances control.
Energy grants and benefits: Exploring eligibility for energy efficiency grants and benefits, such as the Warm Home Discount, Winter Fuel Payment, Boiler Upgrade scheme, and the Energy Company Obligation (ECO) scheme, can provide financial relief.
Charalambous added: “Navigating the current financial landscape in the UK is undoubtedly challenging, given the surge in bills. However, it’s crucial to recognize that every incremental saving plays a significant role in mitigating these challenges. By implementing prudent measures, such as optimising expenses through energy-efficient choices and thoughtful financial planning, we can proactively manage the impact of escalating costs on our financial well-being. Every bit of money saved contributes to building a more resilient and secure financial future.”