UK energy regulator Ofgem has announced that it will increase the price cap for gas and electricity from April this year.
As a result, some people could see their energy bills rise by over £100 per year. The new price caps will apply to bills for those who have not switched suppliers and who are on default tariffs.
It’s expected that the change will affect approximately 11 million households across the country. Ofgem has argued that the higher price cap is necessary because of changes to the price of energy on the wholesale market.
The government introduced the price cap as a way to protect people who have stayed loyal to their energy supplier, as well as the more vulnerable in society. It was a flagship policy introduced by Theresa May and the new system with the price cap was only brought into effect in January.
News that energy bills around the UK are likely to rise in the coming months could make more homeowners and business owners consider how they can reduce their electricity and gas usage.
One option could be to consider installing renewable energy sources for their properties, such as biomass boiler heating.
For those constructing new homes, it is worth exploring renewable energy options. Last month, research found that one-third of people aged 25 to 40 believe that it’s important for a property to be energy efficient.
The findings indicate that younger buyers who are looking to get on the housing ladder are more likely to be positively influenced if a home is not only energy efficient, but also has other eco-friendly features included.