New study shows lack of clarity for UK households on how to reduce cost of energy bills

New research by the charity Nesta and social purpose organisation, the Behavioural Insights Team, has found that despite 98% of people in the UK taking energy-saving measures, there is still obscurity around how to most effectively reduce the cost of energy bills.

The study included a survey which asked participants to rate the effectiveness of 11 energy-saving measures to assess people’s understanding of energy bills.

Results showed a lack of clarity around which free measures save the most energy. For example, air drying laundry was the highest rated measure at 7.1 out of 10 (lowest to highest), despite Nesta stating that actual potential energy savings are 4 out of 10 and could only save up to £70 (based on 206 kWh, assuming can only be done in warmest months) on a typical annual energy bills.

Turning down the thermostat by 2°C on the other hand, could save approximately £309 per year but was only rated 6.6 out of 10 by the public.

Reducing boiler flow temperature was voted the third lowest effective energy-saving measure despite Nesta saying that it could cut energy bills by an estimated £112 a year.

The survey also demonstrated that people believe there is a relatively small variation in the effectiveness of free energy-saving measures, with a difference of only 1.4 between the highest and lowest score. In reality, the study showed the difference in savings is £293.

The full table of responses to energy-saving measures in Nesta’s experiment can be found below:

Responses also demonstrated misunderstandings surrounding the UK Government’s Energy Price Guarantee, which limits the energy bills of a typical household to £2,500 a year.

The experiment revealed that 41% of respondents weren’t aware that £2,500 was not a maximum threshold for energy bills and that their bills could still vary depending on consumption.

“Energy prices have caused seismic shocks to people’s finances over the last year and many now think high prices are the new normal said director of sustainable future at Nesta, Madeline Gabriel.

“Most people are already taking action to cut their bills but they don’t necessarily know which measures will save the most. While every little helps, it makes sense to focus first on the most effective actions. Many of these are free and just need to be done once, rather than things you need to remember to do every day, such as turning off lights.”

To help households effectively save money on their energy bills Nesta launched the Money Saving Boiler Challenger last October in partnership with Which?, Energy UK, EDF, E.ON Next, Octopus Energy and Heating Hub.

The online tool, used by over 170,000 people, guides users on how to reduce their combi boiler flow temperature and is said to help households save an average of £112 a year on energy bills. Nesta has said that the scheme has already save the public £18 million on their energy bills and a further £9 million for the Treasury through the Energy Price Guarantee subsidy.

Gabriel continued: “In just two minutes anyone with a combi boiler can turn down their boiler flow temperature. This can save around £112 a year, which is why over 170,000 people have already done this with our simple step-by-step guide. All together those who have used the tool will save up to £18 million over a year and, because the Government is subsidising bills through the Energy Price Guarantee, the Treasury will save a further £9 million. We estimate 10 million homes with combi boilers could lower their flow temperatures and if all did so, annual savings could be as high as £1.5 billion. We hope that with the Government’s help to get the message out about the Money Saving Boiler Challenge more people will save money on their bills and reduce their carbon emissions.”