The Domino Effect Of Energy Prices

Why Are They Going Up & How You Can Save £££’s


Guscott Heating Services

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Just last week OFGEM announced that the UK’s energy price cap for the average household will rise by 54%. This means the majority of households can expect a £693 annual increase from £1,277 to £1,971 for their electricity and gas bills come April 1st.

With a lot going on in the news recently, many of us are still unclear on a few things. And that’s who OFGEM are, what the ‘Energy Price Cap’ is, why energy bills are rising, what this means for the public and what you can do to counteract the inflation.

With Covid changing the daily routines of the world, people have spent a lot more time at home. Could this have been the main driving force for such cost increases? But hey, let’s start with who OFGEM are…

Who Are OFGEM?

OFGEM actually stands for the Office of Gas and Electricity Markets. They regulate the big energy companies who run the gas and electricity networks and according to them, they vouch to protect energy consumers by striving for a greener and even fairer energy system. (hmm doesn’t sound fair atm the moment OFGEM!)

Jonathan Brearley, chief executive of the energy regulator OFEGM said: “We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can.”

So What’s Caused Energy Bills To Increase?

It’s simply the result of a domino affect. Many are unaware that if gas prices rise, electricity prices rise along with it.

This is due to the fact that Britain actually generates roughly a third of it’s electricity from burning natural gas. One is reliant on the other in order to be produced.

‘Right ok, so we rely on gas to produce electricity?’ – ‘That’s correct’

‘So what’s caused Gas prices to shoot up then?’ – ‘Great question, let’s explore…’

Why Have Gas Prices Gone Up?

The world seems to be using more energy than ever before. A global squeeze on energy resources has caused the demand to sky rocket and unfortunately, being able to actually produce the energy in the first place is what’s causing UK’s Energy Price Cap to increase.

Here’s What Has Caused The Problems

  1. Countries across Europe experienced a cold winter in 2020 and 2021 which placed tremendous stress on gas supplies and impacted how much gas is stored
  2. Countries in Asia experienced a growing demand for air conditioning (which reportedly took it’s toll on global supplies) given their higher temperatures
  3. Lower winds in European summers has reportedly caused a shortage in renewable energy meaning more supplies need to have been taken from traditional methods.

So What Can We All Do?

As far as Guscott Heating services is concerned, we continue our efforts to help our customers save on their energy bills – something we actually won a regional award for.

Our Engineers always have tips at hand and we want to share these very same tips with UK homeowners

Turn The ‘Flow’ Temperature Down On Your Boiler

By lowering the flow temperature on your condensing combi boiler means you can save around 6-8% on gas bills. But what does this mean exactly? 

Most gas boilers run on what’s referred to as an 80/60 flow rate meaning water is sent to your radiators at 80 degrees, before returning back to the boiler at 60 degrees. The 20 degree difference is what has been given off to heat up the room. 

Should you have a condensing combi boiler, you can adjust this setting on the front of your boiler. If you are unsure, please call us on 01634 477023 and we will be happy to help!

Don’t forget about our recent take on The Help To Save Scheme designed to help people save 50% on what they put away.

Over the next few weeks we will be launching our money-saving series giving you guys different tips each week on how to counteract the energy price gap increase exclusively on our Knowledge Hub.

If you want immediate solutions however we are only a call or message away! We are always happy to help!

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Simply give us a call or drop us an email and we’d be happy to help.

01634 477023

Innovation Centre Medway, Maidstone Road, Chatham, Kent, ME5 9FD

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