‘Poorly insulated homes to incur £400 extra heating costs under new price cap’

Under Ofgem’s January price cap, poorly insulated homes face a £415 annual rise in gas bills, reaching a total increase of £730 when coupled with electricity costs, according to a report

Poorly insulated homes are set to face increased heating costs.

According to analysis by the Energy and Climate Intelligence Unit (ECIU), when combining gas and electricity expenses, homes with poor insulation (rated band F on the Energy Performance Certificate scale) will experience an average annual increase of £415 (50%) compared to homes at the government’s target energy efficiency level of EPC band C.

The gas crisis, coupled with escalating power prices, is expected to impact homes with lower energy efficiency ratings more significantly.

When considering both gas and electricity costs, the least energy-efficient homes could see bills rise by around £730 (42%) compared to EPC band C homes.

Even households with an average energy efficiency rating (EPC band D) are projected to face bills approximately £280 higher than if they met the government’s target of EPC band C.

Jess Ralston, Energy Analyst at ECIU, said: “For millions of people living in leaky homes, 2024 will mean being colder and poorer. The real kick in the teeth is that existing government insulation schemes started to flatline just as the gas crisis caused bills to soar, despite having worked well in the past.

“There was an opportunity to boost energy efficiency in the Autumn Statement, but it was not even mentioned, and the PM’s recent decision to scrap insulation requirements for landlords means renters are now locked into higher energy bills for years to come.

“Investing in insulation rather than simply subsidising gas bills over the gas crisis could have shielded households from future volatility in gas prices.”

Make sure you check out the latest Net Hero Podcast episode:

Net zero is a way to cut your costs and help the planet, so what’s stopping you? Often, it’s just the right help and advice. That’s what we will provide at the Big Zero Show this July. Workshops, expert speakers, case studies and exhibitions. Plus, networking with 1500 peers and potential customers. Register for free now.

Latest Podcast