What is the ‘price cap’, and how can you combat rising energy prices? - thumbnail image

What is the ‘price cap’, and how can you combat rising energy prices?

Next month we finally see the dreaded energy bill increase become a harrowing reality for many UK households. It’s a worrying time and people are understandably anxious about how they’ll be able to combat rising energy prices.

You’ve probably heard bits and pieces by now, but we want to go into a little more depth to help you understand exactly what is meant by the ‘price cap’, and how you can combat rising energy prices where your own gas and electricity bills are concerned.

What is the ‘price cap’ and why does it exist

The energy price cap is a way to protect customers that end up on a supplier’s basic default energy tariff. When we see a rise in the maximum price that suppliers (in England, Wales, and Scotland) can charge a household, Ofgem steps in to calculate a fair price that ensures customers don’t pay more than they need to for their energy.

Because we’re seeing gas prices hit a record high after multiple worldwide lockdowns – as well as other disastrous economic factors – households have no choice but to face a record energy bill increase of 54% starting 1 April 2022.

Approximately 22 million customers will be hit by the price cap, with those on default tariffs paying by direct debit seeing an increase of £693 per year, and prepayment customers seeing an increase of £708. It’s a worrying time for many, but there are
things you can do to combat rising energy prices. Let’s take a look…

Save energy where you can

Now is the time to be really, really clever with your energy usage. If you’re looking for two things you can do to help yourself right now, we recommend turning appliances off by the switch if they’re not in use, and ensuring no lights are left on in unoccupied rooms. To be really impactful, however, you must turn both of these points into a daily habit.

If you want to take things a step further, try to take short showers (instead of baths), dry your clothes on an airing rack (instead of using the tumble dryer), and upgrade your household appliances to energy efficient models (check the energy label on the appliance itself). Actioning these simple tips could help you save hundreds of pounds on your energy bill per year – at a time when this is an absolute must!

Invest in energy efficient home improvement solutions

The best piece of advice we can give you is to invest in home improvement solutions specifically designed to make your property more energy efficient. The team at Thrift Energy have been doing exactly this for more than 10 years now, so we feel we’re best placed to not only advise and guide, but to actually carry out the installation process, too.

Not only are we a fully qualified and experienced insulation installer, but also solar PV installer! Opting to have solar panels installed on your roof can save you up to 70% on your energy bills, something many households across the North East are desperate to do right now. Let us help you save vital money in these harsh times.

Call 0800 689 3415 or email sales@thriftenergy.co.uk to find out more today.

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