An energy crisis is an ongoing shortage of energy across the world, affecting many countries including the UK.
Why Is There An Energy Crisis?
With countries recovering from the pandemic, demand for gas increased again, but there was no supply, so gas prices rose in 2021. Cold weather during the winter months forced more people to turn up their heating during the cold months, making the problem worse.
Due to the increase in gas prices, some energy suppliers in Great Britain have gone out of business. Over two million customers were affected by the failure of 28 energy companies as of the end of December last year, including larger companies such as Bulb. It is not necessary for you to take any action if your energy supplier collapses. You will continue to receive gas and electricity as usual. Ofgem, the energy regulator, will move your account to a new supplier.
What Has Caused The Energy Crisis?
It is all because of the fact that the wholesale price of sale has increased massively over the past few months. The energy crisis was caused due to the pandemic, as countries were recovering the demand for gas started to increase again and again, as it wasn’t met due to a shortage in supply causing the prices to increase in 2021. They are currently four times higher than they were a year ago.
What Does Energy Price Cap Mean?
An energy price cap was introduced by the market regulator Ofgem in 2019, they are the maximum amount that energy suppliers are allowed to charge per kWh of gas and electricity each year.
Ofgem’s price caps have protected their customers as energy companies have been hitting the rise in prices. According to Ofgem, the change should allow company’s bills to adjust more quickly in response to the prices they’re charged by all of their wholesalers and suppliers. However the cap is only reviewed every six months, and the prices change in April so they have to take into account the price surge.
Ways To Reduce My Energy Bills At Home :
We recommend that you try and reduce as much of the energy you currently use at home. Here are 4 tips that will support you to save gas and electricity at home.
1. Turn off standby appliances.
This means that if you turn off any appliances at the plug, you’re bound to save an average of £30 a year. Using plug sockets that can be turned off and on via phone is also a good alternative as it’s convenient.
2. Install a smart thermostat.
A smart thermostat can make your heating more efficient, as it will warm up the room you use. They can also be controlled by your phone, which means you won’t come back to a cold house. If you have a smart thermostat installed this means you save around £75 a year.
3. Install a new boiler.
This will save your energy by upgrading your old boiler to a new A-rated condensing boiler that has a room thermostat, and radiator controls. Here at Boiler Sure, we will make sure we try to support you in any way possible to reduce your bills. If you upgrade from a G-rated boiler you can save £900 a year!!!!
4. Be smart when it comes to water
You can easily save around £25 a year by washing up in a bowl rather than using the tap. Buying a more efficient shower head is also a good alternative as you’ll save £18 per person.
