Posted: Friday, June 9, 2023
The cost of living crisis, including the energy crisis, has resulted in some less comfortable times for everyone. Fortunately, we are now beginning to emerge from the other side. At the end of May, Ofgem, the Office of Gas and Electricity Markets, announced that they would be introducing new price caps that will lower energy bills for households in Great Britain!
There are two main reasons why energy bills increased substantially; the recovery from the Covid pandemic and Russia’s invasion of Ukraine.
The Pandemic - In the early stages of the pandemic, there was a historic drop in the global consumption of energy, which led to many fuels dropping to their lowest price in decades. However, post-pandemic, economic recovery was far faster than expected and this, combined with a particularly cold winter in the North Hemisphere, led to a huge increase in energy consumption, leading to increased prices.
Russia - Russia’s invasion of Ukraine worsened the energy crisis significantly due to Europe’s particularly strong reliance on Russia for its fuel. Sanctions prevented countries from purchasing their energy from Russia, making demand far outstrip supply.
Despite the ongoing invasion of Ukraine, the post-Covid recovery and stabilisation of the market have resulted in prices decreasing. Ofgem has announced that from July 1st the energy price cap will be decreased to an annual level of £2,074 for a dual-fuel household paying by direct debit based on typical consumption.
This update means that, for the first time since the global gas crisis took hold, we are seeing lower energy bills. Furthermore, now that Ofgem is updating the price cap quarterly as opposed to every six months, savings can be passed on to customers faster. At its peak, the price cap was at £4,279, so the decrease has been huge and something to be very pleased about.
Since the crisis, Ofgem has recognised its need to make the retail energy sector more resilient to turbulent market conditions, especially as a number of suppliers failed due to not having enough capital to stay in business. Whilst this is welcome news, it has led many individuals to consider moving to alternative energy sources.
When it comes to energy bills, everyone using standard gas and electricity is at the mercy of the markets. The only way to avoid this is by moving away from these forms of energy! Moving to alternative sources is not only good for the environment, but it can also result in lower energy bills. We encourage our customers to take this opportunity, especially as all of our Cast Iron Radiators can be powered using alternative energy sources.
To learn about how exactly these alternative sources of energy work, please visit our previous blogs here and here. Alternatively, you could visit our Lincolnshire-based factory to see one of these methods in action…
Visiting our factory and showroom gives you the opportunity to learn more about how our Cast Iron Radiators are made. However, it also gives you the opportunity to see an air source heat pump in action! This eco-friendly source of energy powers nine different models in our showroom, giving you the opportunity to learn more about how they work whilst also getting to appreciate the impressive amount of heat that they produce!
If you would like to view our products before your visit, you can find our Cast Iron, Steel and Anthracite radiators on our website. There you can also find our towel rails and new bath range!
Make sure to follow us on Instagram, Facebook, TikTok or Pinterest for news and advice.
< Back To Blog