Energy prices are frequently in the news, amid wider concerns over the rising costs of living. Given that gas and electricity are essential and significant household expenditures, people are understandably worried about their monthly energy costs.
Below, we look at trends in electricity and gas prices to find out whether you can expect lower energy bills in 2024. We also offer a few tips for keeping your energy costs down.
Energy costs are influenced by factors including supply and demand, which impact the wholesale price (i.e. what it costs your supplier to buy gas and electricity). Events such as extreme weather and world conflicts affect what you pay for your energy.
The UK’s energy regulator, Ofgem, sets an energy price cap three times a year. This limits how much energy firms can charge their customers annually, based upon typical household use.
The energy price cap set by Ofgem for the period 1 April to 30 June 2024 is £1,690. This equates to 24.50 pence per kilowatt hour (kWh) for electricity and 6.04 pence per kWh for gas (plus daily standing charges).
In practical terms, this represents a 12% fall compared to the cap set between 1 January to 31 March 2024. With warmer weather (hopefully!) also on the way, energy costs for most households should fall in the shorter term.
This continues the downward trend in energy prices seen in recent months. The experts at Cornwall Insight expect this to last into the autumn. Their latest forecasts are for the next cap from 1 July to 30 September 2024 to be 8% lower at £1,560. However, it then predicts a rise for the winter period from 1 October 2024 to 31 December 2024 to £1,631.
While the energy cap provides a general indication of your 2024 energy bills, costs are also dependent on individual household usage.
You can mitigate unpredictable gas and electricity prices and reduce your bills by taking steps to maximise your property’s energy efficiency. For example:
A high-performance insulation like SprayCork helps to keep heat in your home, preventing it from escaping through the walls and increasing the efficiency of your central heating. It can be applied to internal walls or externally as a render.
Either way, it allows you to turn down the thermostat and have your heating on for less time, cutting your energy bills in 2024 and beyond.
At CorkSol, we have a trusted UK network of qualified and experienced approved applicators. Our products are available exclusively to these contractors, who we have vetted and trained to ensure the best results for your property.
Any questions? Email [email protected] or call us on 01484 442420.
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