energy price update

Lower Bills Ahead?

It looks likely that with falling natural gas and oil prices household energy bills could slip below the government’s Energy Price Guarantee (EPG). One of the energy suppliers, Ovo Energy, have announced a 12 month tariff of £2,275 to existing customers that is below the EPG of £2,500 (for the average family home). If energy prices fall further it is not unlikely that deals could come on the market this summer for £2,000 per year. These deals are still almost double what they were before Russia invaded Ukraine, but it encouraging to see some competition return to the domestic supply market.

Energy price guarantee

The Energy Price Guarantee was brought in to protect consumers from the soaring price of gas and electric reflected by the Energy Price Cap (EPG). The Energy Price Cap has risen from around £1,000 per annum 2 years ago to a high of £4,279 this January. Therefore the government have been subsidising households this Spring to the tune of £1,800 per year. £4,279 minus £2,500 =£1,779. Now with prices likely to fall below the EPG the government will no longer be subsidising households to such an extent. It is possible that the Energy Price Cap will fall further from its present level of £3,280 to around £2,000 this summer.

Green energy investments for your home

Obviously forecasting oil and natural prices is fraught with danger. With OPEC announcing production cuts this week, and the price of crude rising sharply, nothing is written in stone. And with fighting still going on in Ukraine it is very hard to make accurate predictions. Therefore we still advise householders to use the rest of the year to improve the insulation in their homes, and maybe look at Green energy projects for their houses. The return on investment for Green energy is still good even with annual power bills around £2,000. Don’t forget that their are still government grants available for certain projects, especially installing Air Source Heat Pumps.

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Solar panel installation

2022 and all that

For this our December blog we are going to look back on our blogs posts from 2022. Little did we know how prescient our first blog of the year was going to be. Titled “Coming to your in 2022-Higher Energy Bills” we predicted that the energy cap would rise sharply in April. What we didn’t know was the Putin would order the invasion of Ukraine and send gas and oil prices soaring further. The energy cap will rise to £4,279 in January.

However consumers are protected by the Energy Price Guarantee until March 2024. The Energy Price Guarantee protects consumers reducing the unit cost of electricity and gas so that that a typical dual fuel direct debit bill for January 2023 remains at £2,500 and will be increased from April 2023 to a new level of £3000. Ofgem are also moving to quarterly price cap updates.

Lets hope that energy prices saw their peaks in 2022 and that wholesale prices of gas and oil continue to fall further. We have offered advice in a couple of blogs of how to save money and how to run your gas boiler efficiently.

We further addressed price inflation in our blogs for May and June titled The Perfect Storm-Parts 1 and 2. As well as energy price inflation these two blogs discussed the shortages in the supply chain affecting our electrical business. Some parts have been in acute shortages all year and have affected our work flow and deliverability on projects.

The rapid rise in energy prices has led to a record year for Carter Electrical Installations with our Green Energy projects. We have covered the installation of Green Energy in several blogs this year. Offering advice on the best products to use and how to run things efficiently. We have seen good demand from golf courses to install Solar PV and storage batteries and covered the topic in our July blog-Golf Courses Go Green. We also wrote blogs on Solar Panels and how they work and storage batteries-Battery Power

Carter Electrical are a local to Reading family run company, that has built up plenty of experience in installing Solar PV, inverters, storage batteries, EV chargers and Air Source Heat Pumps. Its this combination of skills combined with our electrical contracting background that makes us quite unique in the industry. The one issue that we continue to focus on is recruiting more electricians with experience of green energy. Though we do offer training in this area for qualified electricians. We covered this subject in our August blog-Are You Looking For A New Challenge?

It just remains to wish all of our readers, customers and suppliers a very merry Christmas and a successful and healthy New Year. Best Wishes from Jon, Matt and the Team

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Nest heating

Getting the best out of your gas boiler.

Heating your home accounts for up to 60% of what you spend in a year on your energy bills (Energy Saving Trust). Therefore anything that you can do to improve the efficiency of your boiler and radiators will lead to significant savings.

Depending on your boiler’s age, a new efficient condensing one could save you up to £315 a year. However a new installed boiler will set you back anything from £1,800 to £3,000 depending on the boiler of your choice and the size of your house.

Adjusting your thermostat at home

If you only have one thermostat for your home, turning it down by 1°C would save around £145 a year, according to estimates from the Energy Saving Trust. For most people, the lowest comfortable temperature to set your heating is around 18°C. 

What many home owners don’t realise is that their boiler can be made to run much more efficiently. The ‘flow temperature’ is the temperature your boiler heats up the water to before sending it off to your radiators. Most gas boilers are set up to operate at what is called 80/60 flow and return temperatures. This means the boiler heats up the water to 80°C. The water returns to the boiler after travelling around all your radiators at 60°C, having given off 20°C to the room.

However an 80/60C flow is too high for a condensing gas boiler to achieve the A-rated efficiencies claimed by the manufacturers. Your installer should have reduced the flow temperature to give the boiler a chance to run in what is known as ‘condensing mode’ as much as possible. This is when you will make a decent level of savings.

Efficiently running your heating in your home

The correct temperature setting for heating on a boiler is ‘as low as possible’, but as a guide most older homes can run their heating systems at 60°C and newer homes at 50-55°C. They start to reach their very highest efficiency potential at 45°C flow temperature or lower, but this can be too low for older properties.

Ultimately how low you can turn your flow temperature down will depend on the size of your radiators, how well insulated your home is and your thermostat temperature. For homes with modern double glazing, cavity walls and good levels of loft insulation you should be able to drop your flow temperature down with no impact on comfort. Even older homes, particularly terraced houses, will be able to do this if they have been modernised and draft proofed.

Smart heating in your home

There are also a raft of smart heating controls like Nest and Hive that allow you to control your home heating via and App. Why have your heating on when no one is at home? Or turn the heating on remotely when you are on your way home? If you add smart thermostatic radiator valves to your smart heating controls you can really start to make savings. At Carter Electrical we recommend fitting Nest and have good experiences with that brand.

Thermostatic radiator valves and a smart heating controller allow you to divide up your home into various zones and then offer smart heating in each zone, so your guest bedroom is heated only when required, the master bedroom is warm in the morning and at bedtime, and the kitchen is cosy at breakfast and tea time.

Get in touch if you would like more advice or if we can help with any electrical and heating issues.

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