ENERGY PRICES ARE INCREASINGWhat Can You Do About It?
Towards the end of 2018 it was announced that energy firms wouldn’t be allowed to raise their prices, saving consumers £76 a year or more (depending on your energy provider). ‘Hooray’, we all thought. This was a huge step in the right direction as energy prices have risen 21% since April 2018.
What’s Happening Now?
Less than one month later it’s confirmed that energy prices will be rising. Ofgem reviews the price cap twice a year – meaning even though the cap is in place, by April 2019 you will most likely see energy prices rise for the average household. This has been estimated to be a £120 increase as the cap is currently set at £1,137 and is expected to rise to £1,257. Technically the price cap still exists, but it just limits how much suppliers can charge you for each unit of energy used. That means if you’re a higher user, which is likely during winter, you will still pay more before the rise even takes effect.
According to the OVO energy reports, from 2004 to 2014 prices went from £565 to £1,344. That is a 138% increase. It won’t be surprising to see the same rise over the next 10 years. Leaving many people concerned about using their energy at home.
Many customers concerned about their energy price rises tend to switch suppliers. As a short-term solution this might work for you. Over a longer period, the prices will begin to increase and eventually you will continue to lose money. Not only that, if you decide to choose a small energy supplier, they may go bust. Recently Spark Energy closed, leaving 290,000 people being switched by Ofgem to another supplier without their knowledge. Not only does your supplier change, it’s unlikely you’ll be on that same cheap tariff you originally signed up to.
An Alternative Solution
Solar Power is an ever-growing renewable energy source. Costs of installation have fallen, solar panels have become more efficient and improved outright in terms of looks and functionality. Whilst the Feed-in Tariff is still accessible to all homeowners, it is coming to an end March 31st. At REST we have received a much larger number of enquiries than ever before. People are beginning to realise that it’s a worthy investment and don’t want to miss out before it’s too late. Signing up before this date will cement your tax-free income from the government for 20 years.
To outline what the Feed-in Tariff means – depending on your system size, for every piece of electricity you produce you will be paid regardless if you use it or not. Solar panels can significantly reduce, and in some instances, eradicate energy costs by generating free, green energy. With solar power, you are off the national grid during daylight hours, hence saving thousands of pounds on energy. Plus, if you include a storage battery, you’ll be able to use the energy your solar panels collect 24/7.
If you feel like this could be a solution for you and you’d like to cut your energy bills by up to 80%, please get in touch.