What determines your energy bills?

With energy bills having risen dramatically in recent years, you may be wondering what is driving this and what you can do about it.

Firstly, most households are on what’s called a default tariff, which is a basic tariff that all suppliers must offer. Ofgem sets a maximum price on what can be charged under these tariffs for standing charges and units of gas and electricity based on conditions in the wholesale market. It revises this price every three months to account for any shifts in the market. Nevertheless, you don’t need to stay on a default tariff. You can opt for a different deal with your current or other supplier, such as a one-year fixed deal or a tariff that offers cheaper off-peak electricity for charging electric vehicles.

Whatever tariff you’re on, however, it’s your usage that will ultimately determine your bills, and this is where you may be able to make big savings. This can involve behavioural changes that cost nothing, such as drying your washing outside instead of using the tumble dryer or setting the thermostat one degree lower. Upgrading your home insulation may cost money, but the investment can pay off in the long term by reducing the amount of gas you need to burn to heat your home.

Xgas can also provide heating engineers in Wrexham and Chester to ensure your heating system is working efficiently, such as by servicing your boiler and replacing an old inefficient boiler with a more efficient modern equivalent. Get in touch to learn more.

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