With the energy price cap set to fall again during the final three months of this year, research from Fair Fix, the boiler engineer experts, has revealed that the nation’s households will benefit from an estimated saving of almost £4.15bn on their energy bills.
Ofgem, the body that regulates energy supplies across Britain, will be further reducing the energy price cap as of this Sunday 1st October, meaning that many households will see a reduction in cost of their energy bills during the final quarter of 2023 and in the run up to Christmas.
The energy price cap limits the maximum amount energy suppliers can charge you for each unit of energy used. At the start of this year, the price cap sat at £4,279 per household, falling to £3,280 during the second quarter of the year.
However, during both quarters the government’s Energy Price Guarantee was also set at £2,500 to ensure struggling households were protected from sky high energy bills. As a result, the total energy bill paid by Britain’s 27.5m households was an estimated £68.7bn in both the first and second quarters of the year.
Between July and September, the energy price cap fell again to £2,074 per household, while the government’s Energy Price Guarantee increased to £3,000. This means that the total paid by the nation fell by over £11.7bn in Q3 to a total of £57.0bn.
From this Sunday the energy price cap is set to reduce further, this time to £1,923, a -7.3% drop versus the previous quarter and more than halving (-55.1%) when compared to the first quarter of the year.
As a result, Fair Fix estimates that the total to be paid by the nation’s households for their energy will be an estimated £52.8bn during the final quarter of this year. That’s a reduction of £4.15bn when compared to the previous three months and £15.8bn less when compared to the first quarter of the year.
Founder of Fair Fix, Tyrone Ekrem said, “Households across the nation will be breathing a sigh of relief as their energy bills are set to reduce again from this weekend, with the price cap now considerably lower than it was at the start of the year even without the additional help of the government’s Energy Price Guarantee being needed.
Of course, as we head towards Christmas and the darker, colder months, the likelihood is that we will be more reliant on our energy supply and so it still pays to be mindful about how and when you heat your home or use electricity.
There are steps you can take to help minimise your energy outgoings even further. While insulating your home or installing double glazing are the more costly options, you can also look to block draft spaces, switch to more energy efficient light bulbs, upgrade to more energy efficient appliances and avoid leaving electrical appliances plugged in and on standby when not in use.
At the very least, consider getting your boiler serviced as this will help the heart of your home run as efficiently as possible. It’s estimated that heating our homes accounts for around 55% of our energy bill, so a well maintained boiler is essential when it comes to keeping costs down.”