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Energy costs to increase for poorly insulated homes

Despite a new price cap, gas bills are set to rise by around £340 annually for households living in poorly insulated homes, according to new analysis

Under Ofgem’s newly implemented price cap effective from April, households inhabiting poorly insulated homes, categorised as band F on the Energy Performance Certificate (EPC) scale, will experience an average increase of approximately £340 in their annual gas bills.

The Energy and Climate Intelligence Unit (ECIU) conducted this analysis, highlighting the disproportionate impact of the price cap on households with substandard insulation.

Additionally, with escalating gas prices inflating overall energy costs, the combined gas and electricity expenses for inadequately insulated homes are projected to rise by roughly £600, reflecting a 40% increase compared to homes at the desired EPC band C level.

Furthermore, even households residing in properties with a relatively average energy efficiency rating, EPC band D, will observe an increase in overall energy bills, amounting to approximately £230 higher annually compared to those meeting the EPC band C standard.

Jess Ralston, Energy Analyst at ECIU, said: “For millions living in cold, leaky homes, insulation is crucial for lowering bills. But with energy independence remaining a top concern for the public and politicians alongside the cost of living, insulation is now also key to reducing our demand for gas.

“Unless we start to use less gas, we’ll just have to import more from abroad as the North Sea continues its inevitable decline, regardless of new licenses.”

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