Energy Saving Week - Saving energy & reducing bills

With energy prices rising beyond anything we’ve seen in the past decade, we understand it’s a worrying time for all our members, customers, and colleagues. As it's Energy Saving Week from 17^th January, we’d like to help colleagues save energy, lower their bills and reduce their carbon footprint.

But before we come on to some energy saving tips here’s a quick snapshot of what’s happening in the energy market right now from Lizzie Hieron, Chief Operating Officer for Utilities.

The UK energy market is experiencing the biggest crisis it’s seen for decades. Why? Well, there are several factors. We are overly reliant on the supply of gas from Russia. Availability is much lower than usual, and wholesale prices are at a 13 year high! The more we can increase demand and generation of renewable energy the less reliant we will be on the European gas producers in the long run – that’s why at Midcounties we are supporting Community Energy through our community power tariff and have plans to build new sources of community renewable energy.

Energy bills set to rise

The energy price cap is currently set well below the actual cost of the energy supplying your home. That’s why over half the energy providers in the market went out of business last year. The price cap is set to be increased in early February, taking effect from 1^st April, the average home is expected to see their energy bill increase from £1,277 a year to just over £2,000.  This means that the cost of your bills will rise if you are currently on a standard variable tariff. This won’t result in energy companies getting rich – in fact, it will still be difficult for them to break even.  Midcounties partnered with Octopus as our retail energy partner – they are doing everything they can to keep bills low and also lobbying the government to take some serious action to protect consumers.  They have a number of blogs that you can read for more information.

What does this mean for you?

Right now - if you’re on a fixed tariff, this won’t impact you until that tariff comes to an end. When it does, the best thing you can do is join the variable tariff with your current energy provider. You will likely see a price increase but by choosing the standard variable tariff you’ll be protected by the government’s price cap keeping your bills as low as possible. DO NOT switch to a new company and DO NOT sign up to a fixed tariff. Both things will likely cost you more right now.   Most companies, like us, are currently advising you not to switch on their websites, as soon as the market settles, we will remove this advice and you can easily get a new quote for a fixed tariff.  We’ll let you know when this happens.