February has been a big month for energy news in the UK. With rising bills, government policy updates, and a growing push towards sustainable home heating, there’s a lot to keep up with.
To make things easier, we’ve broken it all down into what’s happening, why it matters, and what you can do to stay ahead of the curve.
Energy prices are rising (again)!
From April 2025, the energy price cap will increase by 6.4%, meaning the average annual household bill will rise to £1849 per year. This is the third increase since September, adding up to an 18% jump in just a few months.
The main reason for this rise is the continued increase in wholesale gas prices. Even though the UK is moving towards renewables, a large amount of electricity is still generated from gas. This winter’s colder temperatures and reduced clean energy production meant more gas was needed, pushing up costs.
Another issue is that energy price caps are based on past wholesale costs, so even though gas prices have started falling, those savings haven’t yet made their way to consumer bills.
If you’re worried about energy costs, now is a good time to check if you’re eligible for government support and look into more effective heating options that can help lower your bills in the long run.
Government support to help with energy bills
With energy prices climbing, the government has expanded support schemes to help households manage their bills. The warm home discount scheme offers a £150 discount on electricity bills for eligible households, while the Great British insulation scheme provides grants to help homeowners upgrade their insulation and reduce heat loss.
National Grid as also launched the energy affordability fund, a £13.8 million initiative aimed a providing financial support to vulnerable households struggling with energy costs.
If you’re unsure whether you qualify for any of these schemes, it’s worth checking out. Many people don’t realise they’re eligible for financial support that could help lower their bills or improve their home’s energy efficiency.
The UK’s net zero plan and what it means for you
The UK’s CCC (Climate Change Committee) has outlined the roadmap for reaching net zero emissions by 2050, and a major part of that plan depends on how we heat our homes. The report highlights that a third of all emission cuts need to come from individual households, which means ensuring all UK homes use clean energy and reduce our reliance on fossil fuels.
One of the biggest changes expected over the next decade is the phase out of gas boilers, with a push towards electric heating solutions like electric radiators. The government is also encouraging a shift to electric cars, improved home insulation and reducing overall energy consumption.
For homeowners, this means that making small changes now, like upgrading to smarter heating and improving insulations can help future proof your home and keep costs down in the long run.
Green energy investments and future electricity prices
The government is also making big moves to increase renewable energy production, which could help stabilise electricity prices in the future. One of the biggest changes is a reform to the CfD (Contracts of Difference) scheme, which supports the development of offshore wind farms and other green energy projects.
The proposed changes will make it easier for new green projects to secure funding. The idea is that more renewable energy means lower energy costs in the long run, but these changes will take time to have an impact.
For now, the best way to lower your energy bills is to use energy more effectively, whether that’s through better insulation, smarter heating, or switching to electric systems that give you more control over your usage.
So, how can you keep your energy bills low?
With rising energy prices and big shifts in energy policy, it’s important to stay informed and take steps to keep your home warm without overspending.
We’ll always bring you updates to help you make decisions about your home heating.
Stay warm, stay informed, and let’s tackle these changes together.
Tags: Industry insights.
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