Energy Price Increase in October 2024 – What You Need to Know and How to Manage It

As we approach October 2024, households across the UK are bracing for another increase in energy prices. The energy price cap for gas and electricity is expected to rise by an average of 10%, which will significantly impact monthly bills for millions of consumers. Understanding the reasons behind this increase and knowing where to find support can help households manage their costs more effectively.

What Is the Price Cap, and How Is It Changing?

The energy price cap is a limit set on the rates energy suppliers can charge consumers for each unit of gas and electricity. This cap is designed to protect households from sudden and extreme price fluctuations, but as global energy costs continue to rise, the cap itself has increased.

From October 2024, the price cap for a typical household paying by Direct Debit will increase from £1,568 to £1,717 per year. This represents a 10% rise, meaning the average household will pay around £12 more per month. In addition, gas unit prices are expected to rise by 14%, while electricity unit prices will increase by 10%. Standing charges, which are the fixed daily costs for maintaining energy supply, are also set to rise slightly, contributing further to overall bill increases.

This price cap affects households using standard credit, Direct Debit, prepayment meters, and Economy 7 meters. While energy prices have generally decreased since early 2023, the upcoming increase will leave bills more than 30% higher than during the winter of 2021/22.

Why Are Prices Rising?

Several factors contribute to this new increase in energy prices, including:

1. Global Market Volatility: Events such as geopolitical conflicts, disruptions in supply chains, and fluctuating energy demands contribute to the volatility of energy markets. These market shifts ultimately impact wholesale gas and electricity prices, which are passed on to consumers.
2. Rising Energy Demand: As economies continue to recover from the COVID-19 pandemic, global energy demand has surged, leading to higher prices.
3. Infrastructure Investment: Energy providers are investing in infrastructure upgrades to improve efficiency and reliability. These costs are often reflected in consumer prices.

How UKEM Can Help You Save on Your Energy Bills Through ECO4 Funding

With energy prices increasing, it’s more important than ever to find ways to reduce your household energy consumption. The UK Government’s ECO4 scheme provides a valuable opportunity for low-income and vulnerable households to access grants that help improve energy efficiency. UKEM, a leading provider of energy-saving solutions, can guide you through the process of applying for ECO4 funding and help you access key measures to reduce your energy bills.

Access to ECO4 Funding

The ECO4 scheme (Energy Company Obligation) provides funding to households for a variety of energy-saving measures, helping them manage rising energy costs. If you qualify, UKEM can assist you in accessing this funding to cover the costs of essential improvements like insulation, heating system upgrades, and renewable energy installations.

For more detailed information about eligibility and the funding process, visit UKEM’s ECO4 Funding page.

Energy Efficiency Improvements Available Under ECO4

ECO4 funding covers several energy-saving upgrades that can make your home more efficient and help lower your bills in the face of rising energy prices:

1. Wall and Loft Insulation: Proper insulation helps retain heat in your home, reducing the need for constant heating and ultimately lowering your energy costs. UKEM can install wall and loft insulation under the ECO4 scheme, which will not only save you money but also increase the comfort of your living space.
2. Heating System Upgrades: Many homes still rely on outdated and inefficient heating systems that drive up energy bills. ECO4 funding can help you upgrade your boiler or heating system to a more energy-efficient model, reducing your energy consumption and long-term costs.
3. Smart Controls: The ECO4 scheme can also include the installation of smart controls for heating, allowing you to remotely manage your energy usage via a mobile app. Smart controls ensure you only use heating when necessary, helping you to avoid wasting energy and saving money on bills. You can find more about these technologies on UKEM’s Smart Heating Controls page.
4. Renewable Energy Solutions: UKEM can help you explore renewable energy options such as solar panels, heat pumps, and other sustainable energy sources. These systems, which are also eligible under the ECO4 scheme, reduce your reliance on traditional gas and electricity providers, helping you stay insulated from future energy price hikes. Switching to renewable energy can also significantly lower your energy bills over time.

How UKEM Provides End-to-End Support

Applying for ECO4 funding and implementing energy-saving measures can be a complex process, but UKEM provides end-to-end support. From assessing your eligibility to managing the installation of energy-efficient systems, UKEM ensures that you make the most of the funding available and implement the most effective measures for your home.

If you’re struggling with rising energy costs, check whether you qualify for ECO4 funding and explore the energy efficiency improvements that could significantly reduce your bills. Visit UKEM’s ECO4 Funding page for more information.

Additional Ways to Reduce Your Energy Bills

In addition to seeking support through the ECO4 scheme, there are several actions you can take to reduce your energy consumption and manage your costs effectively:

1. Monitor Your Energy Usage: Installing a smart meter or using energy monitoring apps can give you insights into your consumption patterns, helping you identify areas where you can cut back on energy usage. Monitoring your energy can help you make more informed decisions about how and when to use electricity and heating.
2. Make Energy-Efficient Upgrades: Upgrading your home’s insulation, windows, or heating system can significantly improve energy efficiency. While these upgrades often require an upfront investment, they provide long-term savings by reducing energy waste.
3. Reduce Standby Power: Many electronic devices continue to use energy even when switched off. By unplugging devices or using smart plugs that cut off power when not in use, you can avoid wasting electricity on standby power.
4. Switch to LED Lighting: LED bulbs are far more energy-efficient than traditional incandescent bulbs, using less electricity and lasting much longer. Switching to LED lighting can lead to noticeable savings on your energy bills.
5. Consider Renewable Energy: If feasible, installing renewable energy systems like solar panels can dramatically lower your energy costs and provide long-term savings by reducing your dependence on fluctuating energy markets.

Preparing for the October 2024 Energy Price Increase

With energy prices rising in October 2024, it’s essential to take control of your energy usage and explore available funding and support options. UKEM is well-positioned to help you navigate these changes through the ECO4 scheme, offering practical solutions that improve your home’s energy efficiency and reduce your bills.

By accessing ECO4 funding, implementing energy-saving measures, and adopting smarter energy habits, you can manage the rising costs and create a more sustainable, affordable home. Visit UKEM’s website today to learn more about how they can help you reduce your energy consumption and take advantage of government funding to offset rising energy prices.