Energy Price Cap falls - but for how long?

So we now enter the next price cap from Ofgem the Office of Gas and Electricity Markets. Ofgem are responsible for working with government, industry and consumer groups to deliver a net-zero economy, at the lowest cost to consumers.

So the latest price cap has brought energy costs down by an average of £122 or 7% which is always good news for consumers. Problem is a report by the Energy & Climate Intelligence Unit (ECIU) said that consumers should brace for an additional hit of up to £600 over the coming winter, largely due to higher wholesale prices.

It pointed to a possible £200 price cap rise from October on the back of some analyst calculations, suggesting it was plausible the total could remain around that level until June. One calculation, by experts at Cornwall Insight released last Friday, predicted a 10% - or £155 - increase from 1 October to £1,723 a year but said there remained uncertainty on the market path ahead. So what can you do to protect yourself against this price rises.

Well you could start to generate your own energy, get completely off grid. The issue here is the investment needed and if you think you can do it with Solar Panels alone, think again. They may well cover all your needs in summer on a good sunny day, but wait until you see the drop off in energy produced in winter. Yes they can still produce energy on a gloomy day, but it’s not close to their potential on a sunny day. So you are going to need a lot more panels than you may anticipate. Of course you then have to make a enough during the day to cover you in the evening, its easy to forget at this time of year when we are enjoying the late bright evenings that in winter we are int he dark at 5pm and making nothing from our solar panels. Store the energy in batteries, I hear you cry! Well of course, issue now is the investment is going up and the return is taking ever longer.

Which is why at ESME we promote a battery first solution. Install enough batteries to cover all your peak costs. Charge only in off peak, currently only 7p per kW on Octopus Intelligent. Help the UK use all the renewable energy produced and reduce your own costs by not 7% but closer to 60%. Which makes a return in under five years. And no difficult install on your roof. If you have a washing machine size space in your utility room or garage, then you’re ready to go.

Try the ESME energy saving calculator and start your saving journey now.