After paying high energy costs in recent years, you may be wondering if they will finally go down.
It’s first important to understand how energy costs are calculated. Unless you’ve opted into an alternative tariff, you will likely be charged according to Ofgem’s price cap, which limits the standing charges and unit costs that energy companies can charge. Ofgem calculates this according to movements in the wholesale gas and electricity markets, however, market volatility inevitably gets reflected in your energy bills.
Cornwall Insight, which tries to predict energy costs, is currently offering a glimmer of hope in the form of a slight drop in the price cap in the New Year, potentially followed by further falls over spring and summer. Cornwall Insight’s principal consultant, Dr Craig Lowrey, said that while bill payers were currently having to pay more for their energy:
“…our current forecasts show that this is a temporary blip. January to March, typically some of the coldest months of the year, often bring with them the biggest energy bills, and—while our latest forecast is welcome news—it remains subject to the volatile wholesale gas and electricity markets.”
Nevertheless, expectations are that energy bills will remain hundreds of pounds higher than their historical levels. The best way to pay less for energy is to use less of it, and an efficient modern condensing boiler represents a way to do this. Xgas can provide a boiler installation in Chester and other places around the Wrexham area, so get in touch today to learn more.
