Energy bills could be reduced for millions of households by as much as £85 a year in the autumn, according to one of the UK’s Big Six providers E.ON (opens in new tab). The supplier predicts a 7.5 per cent cut in the cost of standard variable tariffs, following a drop in energy demand during the coronavirus pandemic and subsequent lockdown.
As businesses nationwide were forced to close for a prolonged period, the country’s overall usage of gas and electricity fell. Due to this, the energy supplier (opens in new tab) expects we will see lower rates when Ofgem reveals its latest price cap, on Friday 7 August.
E.ON’s calculation is based on average annual consumption values across Britain, and the £85 reduction equates to almost four weeks of energy use in an average UK household. The updated price cap will come into effect in October. E.ON boss Michael Lewis believes this will result in many of us seeing “the benefit of lower bills in time for the colder months”.
Switch supplier to make savings now
If you don’t want to wait until October, you can look to make savings on your energy bills right now by shopping around for a better deal. By running an online energy comparison, you’ll be able to see the best energy deals in your area and how much you could save by switching to a new supplier.
Households currently on standard variable tariffs, for instance, could save up to £300 a year by switching to a fixed-term deal with a new provider and tariff.
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More ways to save with the Green Homes Grant
More details have also been released this week about the Green Homes Grant (opens in new tab). This is a scheme that will give England’s homeowners the opportunity to install energy efficiency upgrades on their properties, with financial support in the form of vouchers worth up to £5,000.
The Government has now revealed (opens in new tab) that throughout August thousands of households in England will be able to register for the vouchers, and they can be used to install one or more of the following:
- Solid wall, under-floor, cavity wall or roof insulation
- Air source or ground source heat pump
- Solar thermal
The Government has also said they can be used for further energy saving measures including:
- Double or triple glazing/secondary glazing, when replacing single glazing
- Upgrading to energy efficient doors
- Hot water tank/appliance tank thermostats/heating controls
You will be able to access additional advice and support on how you can improve your property from the Simple Energy Advice (SEA) service (opens in new tab). This guidance will help determine what improvements will be appropriate for your home, what level of funding support you could qualify for, and the potential savings you could make in the long run.
There will also be a list of approved TrustMark and MCS-registered tradespeople in your local area that can carry out the work. It’s claimed the vouchers will start to be issued at the end of September.
Collectively, this grant - alongside the predicted cuts to our energy bills and current opportunities to switch to better deals - means that if you act now and put the right steps in place, you could make significant savings by the end of the year.
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