The UK government has today (23 February) announced long-term measures aiming to help households save on their monthly energy bills.
These measures include examining how standard energy deals should work to pass on the cheapest electricity costs, as well as £10 million in funding for companies to test new technologies and tariffs with their customers to make the most of cheap, low-carbon power.
This announcement also sees the launch of a new scheme to help customers repair or replace smart meter in-home displays after the one-year warranty.
Eight suppliers, covering nearly two-thirds (60%) of the market, have signed up thus far, including E, E.ON, Good Energy, Octopus, Ovo, Scottish Power, Utilita and Utility Warehouse.
More than half of UK households already own smart meters, meaning they can access cheaper, off-peak energy tariffs, as well as saving up to £900 by charging an electric vehicle (EV) at home overnight with off-peak tariffs.
The government is also putting out a call for evidence on standard energy tariffs, which customers are rolled onto at the end of fixed-term contracts, resulting in the vast majority paying a flat rate throughout the day and a potentially higher price than they need to.
This call for evidence comes shortly after Ofgem announced that the Default Tariff Cap will be set at £1,690 for the average dual fuel household paying by direct debit for the next year, coming in at the lowest price since the onset of the energy crisis.
Minister for energy affordability and skills, Amanda Solloway, said: “Households will soon see their energy bill fall to the lowest level in 2 years. And to bring them down even further, we want more families to be able to benefit from the real savings that smart, flexible energy deals can offer.
“These new measures will ensure people can access these savings even if they’re on the standard basic tariff, so even the busiest families don’t miss out on cheaper bills.”
Why bill savings matter
Since the energy crisis began in late 2021, energy bills have been an increasingly difficult obstacle for regular UK households to manage on a monthly basis.
In fact, independent charity organisation Citizens Advice warned that more than two million people will be cut off from their electricity and gas supply this winter because top-ups are unaffordable.
Research from the charity revealed that, in 2023, 1.7 million people disconnected at least once a month, and 800,000 people went more than 24 hours without gas or electricity.
In addition, one in four people could not afford their essential bills, and one in ten households has had to borrow money in the past six months to cover their energy bills.
The study also reported that almost three million people live in households where they have skipped meals, cut back on food spending, or sold or pawned possessions in the last year to save money to keep their meter topped up.
