According to Cornwall Insight Ltd. That the UK’s electricity costs will be lower than previously predicted. This will greatly decrease the struggles households are facing when it comes to energy bills – but the costs will remain above pre-crisis numbers.
To determine how much consumers will pay for their energy, wholesale power is taken into account and will see average prices of £82 a megawatt-hour during the fiscal year of 2024-25.
This is £31 less than originally forecast at the end of the previous year, thanks to an abundant stock of gas maintaining a supplied market during last year’s moderate winter season. Though welcomed eagerly by consumers, prices are not expected to be any better than they were pre-2022 energy crunch.
Tom Edwards (Senior Modelling Consultant) of Cornwall Insight had this to say concerning the prices:
“Prices remain above historic averages, something we expect to continue beyond the end of the decade.”
Discussing the unchanged commodity prices, which will remain relatively had this to say:
“substantial drops are unfortunately not on the cards.”
Ofgem’s Energy Price Cap
In April 2024, energy regulator Ofgem announced a fall in the energy price cap from April to June, with a reduction from £1,928 to £1,690 a year, about 12% for the average household paying by direct debit.
The price cap is set to fall again, approximately by 8%, when Ofgem announce their new levels from 1 July to 30 September 2024. These will be published on 24 May 2024.
You Could Save More Money with ECO4
The government-backed initiatives like the Energy Company Obligation, Great British Insulation Scheme, and Boiler Upgrade Scheme, target energy-inefficient homes to improve their efficiency ratings by the year 2035. if you have an Energy Performance Certificate of a D or below, you may be eligible for energy upgrades. As well as saving money with the reduction in energy prices that will be lower than expected, a green household will save you further amounts on your energy bills.
- Green heating systems – air source heat pumps can be received with the ECO4 scheme. This highly efficient heating method is the perfect choice for replacing old and defunct conventional boilers that waste more heat than they make and emit harmful emissions. Biomass boilers are also available with the scheme.
- Installation – insulation is the perfect companion when installed alongside heat pumps. It reduces the amount you pay for energy every year, by keeping your home warm and retaining the heat you have generated. It is available for cavity walls, solid walls, room in the roof, and loft insulation.
- Solar power – solar panels on your property’s roof will maximise your green energy. Harnessing the power of the sun’s solar energy to generate electricity, in turn, powering your air source heat pump.
