The Russian invasion of Ukraine in February 2022 caused a huge spike in energy prices. The government soon announced a support plan known as the Energy Price Guarantee, which limited how much households could be charged for each unit of energy they use. This limit was set at £2,500 a year. This was due to change in April this year, where the cap was going to increase to £3,000. However, it’s now been announced that it’s going to remain at £2,500 until June.
This is thought to save the average family £160. The price guarantee is scheduled to end in April 2024.
The amount you actually pay will depend on your energy usage.
What other support is available?
From April, there will be additional support to some groups around the UK:
* £900 to means-tested benefits paid in Spring (2023), Autumn (2023) and again in Spring (2024)
* £150 for people on specific disability benefits
* £300 for pensioner households
Will energy prices come back down?
Globally, energy prices have been falling in the last few months, and the general consensus is that energy prices will fall later in the year. It’s been estimated that Ofgems energy price cap will drop to just over £2,100 in July. This would essentially make the government’s energy price guarantee redundant by the summer.
Despite the government’s help with various support and the price cap, many households have still been struggling. It’s not just the increase in energy prices that have caused issues. The skyrocketing food prices have also added significant pressure on households – especially those in receipt of benefits, those on low incomes and those on a fixed income, such as pensioners. Essential food items have increased significantly – comparing prices from Dec 21 to Dec 22, the ONS (Office for National Statistics) reports:
Low fat milk – 46% inc
Olive oil – 39.5% inc
Butter – 29.4% inc
Eggs – 28.9% inc
Bread – 20.5% inc
Across a typical shopping basket, this represents a large increase for shoppers to bear. It’s even worse when you factor in rising rent and energy costs.
Alternatives to electricity and gas
As a business which manufactures and sells heating appliances which are fueled by either gas, electricity or wood, we have seen an uptick in sales for wood-burning stoves. It’s the same across the industry.
Despite some misinformation being thrown around in the media about burning wood – it’s a very environmentally friendly way to keep warm. But the latest uptick in sales across the industry is mainly driven by those that want to take back control and not be held to ransom by energy-providing nations. Burning wood is a simple, cheap and highly efficient way to keep warm. You know exactly how much you’re burning and what you’re paying. It’s this simplicity and efficiency that is what attracts people. If you can source your own wood – for example, if you have your own woodland or other wood supply heating costs and be virtually zero. Another benefit of a wood-burning stove is that you can heat your main living room with a stove and then drop the central heating temperature right down for the rest of your house. Why heat rooms you’re not in? This method is already having people hundreds of pounds each year.
According to the Energy Saving Trust, you can save £80 a year for every 1C reduction in central heating thermostat temperature. If you lower your heating from 22C to 15C (and use a stove to warm your main living room), that’s a potential £560 a year saving in energy costs.
What about logs?
Wood-burning stoves do require a bit of work compared to a gas or electric fire. You will need to source your own logs and have a supply. It is advisable to store a generous supply of logs unless you are planning to only use the stove very occasionally and are prepared to pay for logs each time you plan to use it. Some wood can take up to 2 years (such as oak) to season, so preparing logs is a long-term project which needs to be done right. This is something to think of if you want to make a move towards sustainable wood heating.
Times are tough at the moment for a lot of people. However, by being aware of the options open to you, saving money and enjoying sustainable heating is possible and a great way forward.
