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By now, I’m sure we’re all aware of the current energy crisis that is happening in the UK. It’s been the focus of news articles, has been plastered all over social media, and has become a real worry for those living in the UK this winter. In July of this year, the government laid out their strategy for helping millions of households across the UK with their ever-rising energy bills, with the ‘Energy Bills Support Scheme’. But what exactly is this scheme, will it help, and are households able to do anything more to help themselves in the wake of this crisis?
What is the Energy Bills Support Scheme?
The Energy Bills Support Scheme (EBSS) is a non-repayable discount given to eligible households this winter, with the scheme lasting from October 2022 until March 2023. It forms a response to the rising energy costs, and aims to help those that live in the UK with paying their energy bills throughout the colder months. Every household that has a domestic electricity connection is eligible for the discount, and that amounts to 99% of households in the UK. For the remaining 1%, the government have announced that an equivalent benefit will be available to those that do not have a domestic electricity connection, in order to help them heat their property through winter.
The discount is automatic and is paid in 6 monthly installments assuming you pay your energy bill by direct debit, so there is no need to contact your energy supplier. On the chance that you have a pre-payment meter, the discount will be redeemable by vouchers that will be sent by SMS, email, or post.
How is the Energy Bills Support Scheme going to help?
The EBSS is part of a wider strategy, which is the government’s Cost of Living Support Package, which is costing around £37 million to fund. The idea is to lessen the strain of the extortionate energy costs, which could prevent people from turning their heating on over winter, and to alleviate some of the worries they have around paying their energy bills. In total, every eligible household will receive £400 to go towards these bills, with further help being given to those who are low income, or are of pension age.
The EBSS comes as an addition to the Energy Price Guarantee which is to reduce the cost of gas and electricity for the next 2 years, and is capped, so hopefully we won’t see another huge surge in prices again, in that time at least. This means that a typical household could see their energy spending at around £2,500 for the year, which is a huge contrast to just £1,287 in 2020. Based on a median consumption rate based on 2019 figures, the government have predicted that households can expect to save an average of £1,000, with those who live in flats saving around £700.
While this is helpful, and necessary for households in the UK to be able to afford energy bills, many people are still worrying about how they will heat their homes this winter, and that the government are simply not doing enough to help.
What else can be done to help with energy costs?
Aside from watching your energy usage, and putting some extra money to the side to help, it can be hard contemplating what can be done to further reduce any energy spending. It doesn’t seem like the government is going to be giving any more handouts, and so that leaves us thinking that we’re on our own from here on out.
While we may be slightly biased, solar panels are a great way to reduce energy costs overall, and could be a solution to reducing them even further in the wake of the energy crisis.
In the EBSS there is no mention of solar panels having any effect on eligibility, so we can assume that those with solar panels will still be eligible for the discount. It’s possible to save up to £514 a year with solar panels, and so having a scheme on top of that which helps to reduce bills can really add up and maximise possible savings. Furthermore, if you have a solar battery also installed, the savings can be even greater, as you don’t have to rely so much on energy from big suppliers, you can generate it and then store it for whenever you need. Not only this, but you could find yourself saving even more if you are eligible for the SEG tariff, where you can export excess energy that you have generated, back to energy suppliers for a cost. From this, it’s possible that you could earn up to £110 a year, just for exporting the energy that you don’t use, which again, adds to the savings that are possible from having solar panels installed.
This won’t be a viable solution for everyone. Not all people have solar panels, and those that don’t might not be able to afford the upfront cost, especially at this time of the year. This definitely raises the idea though, that in times like this when we can see no sign of bills reducing, solar panels can be a huge help.
What’s the takeaway?
This energy crisis has left us all anticipating that we are all going to have a cold winter, and that comes as no surprise when we look at the limited help that we are getting from the government to combat this. The Energy Bills Support Scheme is most likely going to be the main way that the majority of households will get any relief from the extortionate cost of energy, but aside from this, most people will be left to their own devices when it comes to cutting costs. Installing solar panels could be one helpful solution to help consumers fight their rising bills, but this also comes with its own barriers, like the upfront cost of buying them and having them installed. What we can say though, is that having solar panels at an unstable time like this can definitely help mitigate any worries for rising costs in the future.