Have you noticed that your energy bills are getting more expensive?
Perhaps you’re moving into a new student pad and your landlord has told you that you’ll need to pay much more than you expected?
You’re certainly not alone. The global energy crisis is causing prices to soar across the country, forcing you to budget much more for your utility bills than in previous years.
Keep reading to find out what an energy crisis is, what it means for you and how you can keep your bills to a minimum.
An energy crisis happens when there isn’t enough supply to meet demand and it becomes more expensive to buy wholesale gas and coal.
This can happen for a variety of reasons including wars, overconsumption, market manipulation, tax hikes, regulation of the energy sector, strikes, problems at the oil refineries and ageing infrastructure.
The UK is currently experiencing an energy crisis because of ‘a perfect storm of market forces’ that has hit the sector from all angles. In short, almost everything that could happen appears to have happened at once.
- Russia invaded Ukraine (They supply around 12% of the world’s gas)
- Working from home during the pandemic increased demand
- Natural gas and coal prices reached record highs due to global competition
- Extreme weather conditions have caused problems with supply
- Energy regulator Ofgem increased its price cap that limits what suppliers can charge
The factors combined are placing a huge amount of pressure on households across the UK. This could get even worse if the energy cap increases from £693 to £800 in October as predicted.
Speaking of the changes that happened earlier this year, the NEA (National Energy Action) said, “the average bill increased by 54% from £1,277 to £1,971. This works out as £164 a month, on average, when previously it was £106.”
The hardest hit will be cash-strapped students and those on a low income who could find it a real struggle to afford these soaring energy costs.
If you’re living in student accommodation with bills included in your rent, your landlord may increase the price to cover their costs. This depends on the terms of the contract, so it’s worth taking a closer look and getting in touch with them if you’re concerned. Because you’re not in charge of the bills, you won’t be able to switch packages or providers.
For students living in private rented accommodation, you are more likely to feel the impact of the energy crisis.
However, the government has put several strategies into place that could help, including a £150 council tax rebate (if you’re liable) and a £200 discount on your energy bills. It’s also worth looking for a cheaper tariff and trying to use less energy overall to keep your expenses as low as possible.
Keeping your energy usage low is always a good idea. It’s better for the environment, helps keep your household carbon footprint low and will also save you money during this global energy crisis.
Here are a few tips that can help:
- Unplug your appliances when they’re not in use
- Take shorter showers
- Turn off the lights when you leave a room
- Wash your clothes at a lower temperature
- Read your meter to ensure you’re not paying more than you should be
- Sign up for our utility bill app so you can simplify your bills and make predictable monthly payments
The global energy crisis happened as a result of several combined factors including Russia’s invasion of Ukraine, increased demand, the aftermath of the COVID pandemic and soaring prices.
For households, students and those on a low income, this could mean we need to cut corners so we can afford to pay to keep our houses warm, power our devices and live our lives.
But by implementing some of the tips we’ve shared, reducing your energy usage and signing up for the Glide app, you could minimise the impact it has on your life and have more money to spend on the fun things in life. Find out more by contacting us today.