A lot has happened in the first month of 2025 that could affect how we heat our homes this year…
Changes in government policies, rising energy prices, extreme weather, and new technology are shaping the future of home heating in the UK.
Here’s a simple breakdown of the biggest updates from January and what they mean for you.
The government is looking at removing or reducing extra charges on electricity bills, known as environmental levies. These charges were originally added to help fund renewable energy projects, but they’ve made electricity more expensive than gas for years.
If these changes go ahead, electricity prices could drop, FINALLY making it cheaper for homes to move away from gas. The final decision hasn’t been made yet, but this could be a big shift in UK energy costs.
As of 1 January 2025, the energy price cap (the maximum amount energy suppliers can charge) has gone up by 1.2%, meaning the average UK household energy bill is now £1,738 a year compared to £1717 in October 2024.
This increase is small, but it adds more pressure on household budgets. With energy prices still unpredictable, people are being encouraged to find ways to use energy more efficiently to keep their bills under control.
The Climate and Nature Bill, introduced last year to set strict environmental targets, was withdrawn this month after debates in Parliament. The government has promised new environmental policies that aim to balance climate action with economic stability.
This change brings some uncertainty, but it’s likely that new laws will still shape how the UK reduces carbon emissions in areas like heating, construction, and energy supply.
January saw one of the strongest storms in YEARS. Storm Éowyn hit the UK with winds over 100mph, leaving more than a million homes without power.
With severe weather becoming more common, there are growing discussions about how to make the UK’s energy infrastructure more reliable. Conversations around power grid improvements, backup systems, and better preparation for extreme weather have gained momentum.
More and more people are using smart home technology to make their homes more energy-efficient. In 2025, this trend is growing, with heating systems now offering remote control via smartphone apps, real time energy monitoring to track usage, and automated schedules to cut waste and save money.
With rising energy costs, these smart features help people manage their heating more efficiently, making sure they only use what they need.
One of the UK’s major green energy suppliers, Good Energy, has been bought by Dubai-based Esyasoft for £100 million.
This deal suggests a push for bigger investments in renewable energy, but it’s still unclear how it will affect UK households. It could lead to more funding for green energy projects and possible changes in how customers are charged for using renewable electricity.
January has brought some big shifts in home heating—from rising energy prices and changing government policies to extreme weather and new technology.
Since the UK is still working towards net zero, we can expect more decisions, policies, and innovations that will shape how we heat our homes in the future—and how much it will cost.
Staying informed about these changes helps households and businesses plan ahead. We’ll continue to track the latest developments and keep you updated each month.
Tags: Industry insights.
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