gas and electricity bills

Predicted price increases to gas and electricity bills this winter

Recent news reveals that an estimated 3 million households are unable to pay their energy bills and this number could increase by 392,000 in winter as energy bills climb by almost 10% as gas market prices rise.

What is the predicted price rise?

A standard gas and electricity bill is expected to increase to an average of £1,250 a year in winter 2021. Energy experts have estimated that this would be an average increase of £112 a year for the average dual fuel energy bill.

Why are prices predicted to increase?

The surge in global energy markets has forced gas prices across Europe to reach record highs. It is predicted that the energy regulator’s price cap will be reset at its highest ever level because of these record gas market prices.

It is expected that the energy regulator, Ofgem, will raise the maximum rate at which suppliers can charge homes using standard variable energy tariffs – affecting 15 million homes – based on the costs faced by energy suppliers.

How could the price rises affect homeowners?

Fuel poverty campaigners have warned that for every one percentage point rise in annual energy bills, an additional 40,000 homes may fall into the fuel poverty category.

Simon Francis, the coordinator of the End Fuel Poverty Coalition, commented:

“Any price rise – however small – will mean the choice between heating or eating becomes even starker later this year. If that wasn’t bad enough, fuel poverty can make respiratory illnesses worse – meaning conditions such as Covid may be exacerbated by living in cold, damp homes.”

Homeowners may consider alternative energy sources

The predicted price increases to gas and electricity bills may cause some homeowners to look for alternative energy systems for their homes such as renewable energy systems like air source heat pumps, solar panels, and solar and battery storage.

Helping homeowners choose the right renewables

It is extremely important that homeowners select the right renewable systems for their homes to ensure that the product installed will be effective in meeting their needs.

At HIES we strongly recommend that homeowners seek advice prior to committing to a domestic renewable energy installation and that’s why we have launched our consultancy service to give independent advice.

Our renewable energy consultancy service works by our team of advisors reviewing homeowner’s energy requirements and what they are looking to achieve from renewables. This will help us to assess and analyse if the homeowner’s renewable selection is the right fit for their home.

The consultancy service is initially free of charge to homeowners as our team of advisors will have a conversation with the homeowner to listen to and understand their requirements and what advice they are looking for. Should our team of advisors advise that it is worthwhile to investigate the individual case further, then there will be a one-off charge of £100.

What will homeowners receive when using HIES’s renewable energy consultancy service?

  • A dedicated renewable energy advisor,
  • A review of their energy usage and home energy efficiency,
  • An analysis of solar panel, air source heat pump or solar battery requirements,
  • A dedicated audit with jargon-free recommendations,
  • Information on their eligibility for government grants or funding, and
  • An introduction to a HIES Accredited Installer who can fit their renewable product.

To find out more about our renewable energy consultancy service, please click here.

Image by Steve Buissinne from Pixabay