Ofgem is set to announce the new energy price cap on November 22. According to forecasts from Cornwall Insight, it is expected to rise by only £19 over the next year, equating to an increase of around £1.58 per month.
The energy consultancy firm predicts that the price cap will increase from the current £1,717 to £1,736, a rise of one per cent. However, a recent report by clean energy-tech company Aira reveals that 65 per cent of UK homeowners are significantly impacted by rising energy costs.
The risk of ‘energy poverty’ – when a household has to reduce its energy consumption to a degree that it negatively impacts an individual’s health and wellbeing – has been quietly growing throughout the cost of living crisis. Over a third (34 per cent) of UK homeowners have had to dip into their savings to pay their energy bills.
The physical and emotional impact is being felt across the nation, with 75 per cent of people in Yorkshire and The Humber having restricted their use of heating to reduce energy costs and 13 per cent of Londoners experiencing a lack of sleep.
Aira’s latest report, The Era of the Eco-curious: can I live more sustainably and spend less?, reveals that people are already taking small steps to live more sustainably, with 37 per cent of Brits switching to eco-mode on their washing machine, 29 per cent buying second-hand clothes and 25 per cent using appliances out of peak periods, reports the Daily Record
Although 57 per cent of consumers are deterred by the high initial expense associated with heat pumps, these preliminary indications point to a growing aspiration for sustainable living and could spark renewed interest in the transition to heat pumps. Industry experts maintain that despite the cost of living crisis, the twin pressures of soaring energy prices and dipping incomes are prompting a widespread re-think on energy consumption, leading to an emergence of eco-conscious consumers.
Still, research indicates potential growth in adoption rates as 54 per cent of individuals express willingness to shift to heat pumps if they seemed more wallet-friendly, signalling a golden chance for governmental bodies and corporate spheres to propel adoption forward through educational campaigns and enhanced affordability via economic enticements. Carolyn Snell, Professor of Social Policy at the University of York, commented: “There can be a perception that heat pumps are more expensive to run, they’re difficult, and they’re not going to make things as warm as you want them. There’s a real lack of good information around it, and a lack of trusted information as well. Historically, energy is an area where there’s a lot of mistrust – it goes back to the 1990s.”
Transitioning to cleaner, more efficient heat pumps could result in households saving approximately £560 annually on energy expenditures, while innovative companies like Aira are paving the way in easing the switch with manageable monthly payments and extended warranties to assure consumer confidence.
Pamela Brown, Aira’s Consumer Expert, remarked: “Our report shows that energy costs are now a critical challenge for households and are creating anxiety as winter approaches. However, a generation of eco-curious individuals are slowly realising that their carbon footprint – and their energy bills – can be drastically reduced by adopting clean energy-tech.”
She added: “At Aira we increase accessibility to these solutions with monthly payment plans and offer complete peace of mind with a 15-year guarantee, enabling people to live sustainably without spending more.”
For those concerned about heating their home this winter, it’s advised to seek guidance from charities and organisations adept at navigating the complex world of fuel funding access, particularly for prepayment meter users. Assistance with energy bills is available, and if household finances are a struggle, contacting your local council could result in vital financial support.
Support can be found at some of the following:
