As households across the UK has witnessed, recent months have seen substantial increases in domestic energy costs, largely due to a surge in gas prices accelerated by the pandemic and other geo-political events. Learn more about why gas prices are increasing.
The figures – How much are average energy bills rising by?
This has led to a widespread cost-of-living crisis that politicians are trying to grapple with to better support the households worst hit by the added financial pressure. The average household dual fuel tariff jumped from £1,278 to £1,971 in April followed by a further increase in October, whilst inflation rate has hit 9%.
How are industries and the government responding?
These developments offer an opportunity to promote and push forward the agenda for better energy efficiency investment in UK homes, to reduce energy consumption and costs. The Government recently published a set of announcements in its new British Energy Security Strategy that are set to accelerate the domestic energy efficiency market and its innovation further. Some of the notable announcements in the Strategy were:
- An additional £30million to support heat pump investment in 2022 under the Heat Pump Investment Accelerator Competition.
- Government commitment to ‘rebalancing’ the costs and levies placed on energy bills away from electricity to incentivise electrification across the economy.
- Better labelling and product standards to be introduced so consumers can purchase more energy efficient products for heating, lighting, and cooking.
How will this help those hit hard by rising energy bills?
These initiatives will ease the transition to more efficient heating technology, like electric heat pumps, where the UK has set a target for 600,000 installations per year by 2028. The advent of low carbon heating will also require widespread application of best practice to allow these systems to operate efficiently, creating a better level playing field with gas boiler performance and increasing uptake of the technology.
How are new regulations making a difference in the interim?
Progress is already being made. The new Building Regulations due to enter into force from 15th June will require heating installers to fit TRVs when replacing a boiler, matching current standards for new heating systems. BEIS is expected to shortly consult on a new Boiler Policy that will consider the mandating of installation best practice, such as hydraulic balancing, with new boiler installations on par with heat pumps. This balancing could save the average UK home 18% energy per year and improve comfort.
How are we innovating to support a reduction in energy costs?
At Wiser, a smart heating system by Drayton and Schneider Electric, we remain at the forefront of innovation to aid the transition for installers and households. We believe that the way forward involves simple, integrated solutions that are straightforward for installers to commission, and easy for homeowners to use, such as our smart heating system that’s fully heat pump compatible, loaded with user feedback like Insights+ to help save energy, our Electrical Heat Switch to allow smart, efficient control of electrical heating devices, and Drayton’s upcoming auto-balancing TRV technology.
What can we do to save energy right now?
Keen to take action and get back in control? Read our 10 tips on ways to save energy and reduce your bills today.
As a homeowner you can also take advantage of the new government scheme with 0% VAT when you have energy saving measures installed.
Find out more about The Wiser System and its family of products that combine to provide a full smart energy system, taking care of reducing energy costs and carbon footprints across the UK.