UK energy regulator Ofgem has announced that the new energy price cap for households will increase by 54% from April. This is largely due to a record increase in global wholesale gas prices. It is likely to add hundreds of pounds onto the annual energy bill for 22 million homes in the UK.

Ofgem sets the energy price cap twice a year, controlling the cost of gas and electricity for consumers in the UK. And with increasing numbers of households finding themselves in fuel poverty, this news has come as a shock.

The UK government is currently looking at budgetary measures to reduce the financial burden on households, including a £200 discount on energy bills. But in the meantime, to reduce the risk of sky-high energy bills, it is essential that households cut consumption as much as possible.

What is fuel poverty and how can it be alleviated?

A household’s fuel poverty status depends on the interaction of three key drivers: energy, energy prices and incomes.

The good news for the social housing sector is that social housing properties tend to be more energy efficient, resulting in lower energy costs. In 2017, the government’s Clean Growth Strategy set a target for all social homes to be made energy efficient enough to meet an EPC rating of C by 2030. The government has also recently launched a retrofitting decarbonisation fund, to further improve energy efficiency in social housing stock.

But social housing tenants may also fall into a lower income bracket. There are a number of government-backed financial support schemes available to those facing hardship. The Winter Fuel Payment is a one-off payment that helps residents with their heating bills during the winter. Cold Weather Payments are a form of government benefit when the temperature drops below a certain level. The Warm Home Discount Scheme also provides a discount of £140 on electricity bills for residents earning below a certain income threshold. The government intends to extend this scheme, providing relief to 2.7 million homes.

In our free Affordable Warmth Guide, we also offer tips on how tenants can heat their homes on a budget.

Upgrade your equipment

Moving towards a greener future involves upgrading your current energy appliances. And taking a simple approach can sometimes be the most effective.

Updating equipment, installing smart meters, and upgrading your building insulation can make a significant impact on your business’s consumption. And subsequently your energy bills.

These adjustments may seem small, but they can significantly cut costs and consumption. While also lessening your impact on the environment. Choosing to switch to upgraded equipment can also help your business to get ahead of the curve. And potentially overtake competitors that didn’t stay on top of technological developments.

Increase your efficiency

Energy efficiency within your organisations can bring numerous environmental and financial benefits. Against a backdrop of diminishing energy supplies and increasing prices, it is fast-becoming essential that businesses do what is best for them and the environment. Transparency surrounding energy efficiency could also increase a business’s standing, in a market where consumers are becoming increasingly aware of the environment. Making energy efficiency an essential part of an organisation’s path towards net zero.

Consider encouraging employees to incorporate efficiency into their daily lives. Such as switching off appliances when they leave the building, closing windows when HVAC systems are in use, and making the most of any natural light. These measures can go some way towards reducing your energy consumption and subsequent costs.

How can Monarch help?

At Monarch, we understand that trying to keep energy bills low can be a challenge, especially during these turbulent times. We offer a number of services geared towards helping our clients become as efficient as possible. Including:

• utilities cost management
• and intelligent procurement solutions.

We determine the most effective solutions, tailored specifically for your business. This way we can keep track of your progression and consistently keep your energy costs as low as possible.

Get in touch today to find out how Monarch can help you to manage your energy and subsequent bills.

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