The government’s energy and climate change policies could lower annual household energy bills by £166 by 2020; welcome news for all UK households.
New analysis highlights the extent of the potential savings from the efforts, which aim to minimise the impact of global rising gas prices and network costs. These increases have driven bills upwards over recent years, and are likely to continue to do so, but the government policies should cushion the blow.
“Some of the policies will add to household bills, but others offer bigger reductions, so the net result is an overall saving in the coming years,” explains Paul Walker, Managing Director of Electric Radiators Direct.
“It certainly looks like Britons will be better off with these policies than without them.”
In the current climate households are already spending an average £64 less on gas and electricity than if the policies were not in place. By 2020 the net saving compared to the picture if no action was being taken will be an 11% reduction.
In the “Estimated impacts of energy and climate change policies on energy prices and bills” report the government made a commitment to take further action to help those struggling with high energy bills. The policies will help the UK to meet its carbon reduction pledge, commit to a diverse energy mix and ensure that Britain is at the forefront of the global green energy sector.
“We have seen many gas price hikes recently and the increases are putting huge pressure on household finances,” Paul continues.
“Although such rises are beyond government control and experts predict that they will continue, it is welcome news that steps are being taken to offset the increase.”
The government’s focus on moving towards renewable energy sources and encouraging smarter use of energy hopes to help those who need it most to save money. Initiatives, such as the Warm Home Discount, are available, plus there are new regulations on energy firms forcing them to improve energy efficiency.
The government report predicts that, by 2022, around half of UK households will have at least one major insulation measure, and around 12 million gas condensing boilers will be replaced with more efficient versions by 2020.
More stringent efficiency standards for household appliances are also expected to deliver savings, amounting to around £158 per year, and Smart Meters, rolled out to all households by the end of 2019, should allow people to better monitor and change their energy usage.