The rising energy prices has come as a great shock to most of us. Although there have been efforts to blame President Putin, the truth is there were warnings before the Ukrainian crisis. North Sea gas has been starved of investment in favour of green energy schemes while dependence on gas imports leaves the country exposed in two ways – to supply chain disruption and to fuel price politics.
Gas suppliers failed to project demand and under-bought during the lockdown, only to be taken by surprise when it ended. The UK lacks storage capacity for LNG imports and the lockdowns left shipping lines struggling to coordinate deliveries. At the same time, the US prefers high prices that benefit the US fracking industry while overspending & sanctions raise inflation, making imports more expensive. As a result, energy in the UK is facing a perfect storm.
How can we survive these rising energy prices?
Rising energy prices affect both gas & electricity tariffs. Although all suppliers are affected, it is always sensible to compare the tariffs and deals offered by different suppliers. While some are heavily exposed to gas prices, others are closely tied to nuclear energy & may be more competitive (although uranium comes from Russia).
Remember to consider shifting your payment method. Many suppliers offer discounts to those who can pay by direct debit while others surcharge customers who use pay-as-you-go meters.
Considering a switch is especially important for the two million households who were moved to a new supplier when their previous one went bust. Surveys indicate that a large proportion of them are dissatisfied, especially as some are still trying to get the credit they were owed. Customer service is an important consideration so always look at the company’s track record for supporting their customers. People struggling to afford energy in the UK can sometimes get help from their energy supplier but some are more supportive than others.
Help with boilers
According to uSwitch, 9 out of 10 people plan to ration their electricity use. This may seem easy but, saving the gas element of your bills is more difficult when you’re heating and cooking depends on it. If your boiler is coming toward the end of its lifespan there are two very good reasons for considering an early replacement. Firstly, rising inflation will inevitably raise the cost of boilers considerably in the next couple of years. Secondly, the new generation of boilers are substantially more energy efficient than older ones.
New boilers not only burn less gas per calorie of output, but often have other valuable benefits, such as the ability to respond to room thermostats or to change their programming from your mobile phone. That means if you are going to be late home, you can prevent the timer turning your heating on.
A third reason might be the availability of home energy grants. The government seems to change these far too often, leading to confusion and uncertainty, but at the moment help with a new boiler or home insulation improvements is often available through the energy supplier or through your local council. The best people to ask about these complicated grants and subsidies are Next Energy.
