Energy News

Millions of Brits missing out on energy savings

Wednesday 18 January, 2012

By Martin Fagan

Badly insulated homes mean recent price cuts will still leave a £1.9bn hole in consumer pockets while 43% can’t afford next energy bill.

Despite all the “big six” energy companies cutting their prices, many Brits won’t see any reduction in their energy bills, according to new research.

As the UK marks Big Energy Week, several organisations have released research showing that the recent price cuts by the big energy companies will have little effect on households’ bills, and Brits miss out on savings because their homes are not energy efficient.

Research shows that while double digit price hikes added a total of £2.24 billion to household energy bills in little over a year, single digit price cuts announced in the past week will only wipe £340 million back off again - leaving consumers with a £1.9 billion shortfall.

The price cuts will shave £34 (2.6%) off the average household energy bill, according to uSwitch.com, the independent switching service. Even factoring in the recent price cuts, in the last six years household energy bills have rocketed by 91% - from £660 a year in 2006 to £1,259 a year now.

Ann Robinson, Director of Consumer Policy at uSwitch.com said: “These price cuts do not come anywhere near offsetting the eye watering price hikes that have hit consumers since the end of 2010. The cost of energy has become a major household worry and these single digit price cuts will do little to change that. Affordability looks set to remain a concern.”

Brits could offset any price increases with more energy efficient homes and by switching supplier, but millions of people are missing out on easy ways to make big savings for little or no cost, according to energy watchdog Consumer Focus and the energy industry’s representative body, Energy UK.

Recent Government figures show 9.6 million homes don’t have enough loft insulation and 7.8 million do not have enough cavity wall insulation - that’s one in every four homes. Every major supplier is offering free or cut price deals for loft and cavity wall insulation, yet only half of the 200,000 UK homes have taken advantage of the deals.

Consumer Focus says two-thirds of consumers are not fully confident that their home is as energy efficient as it could be, yet seven out of 10 of these consumers don’t plan to do anything to improve the energy efficiency of their home in the next year.

Mike O’Connor, chief executive of Consumer Focus, said: “Many people are paying more than they need to because their home is leaking heat and they aren’t on the cheapest deal. Yet with one simple call to their energy firm many customers could make big savings on their bill.”

Yet despite many consumers’ apathy to lagged boilers and switching suppler, 43% of people are worried they can’t afford their next fuel bill and one in two say energy bills will put a strain on their finances in 2012, according to new figures from Citizens Advice.

Photo by Images_of_Money