18/05/2022

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6 Reasons for the Rise in Electricity Bills in the UK

Energy prices: Why are power bills going up? - BBC News

2021 has seen an extreme rise in electricity bills in UK homes. These are some of the reasons why;

  1. Weather conditions 

Weather changes have a direct significance on the amount of energy consumed at home.

During winter the temperatures get very low causing a surge in electric bills because of the amount of electricity needed to warm the house.

Summer is not an exemption because it takes an immense amount of electricity to regulate air conditioning at home.

The average electric consumption during winter is proportionately higher than electric consumption during summer.

This is because there are many appliances in need of electricity during the cold weather including space heaters, air conditioners, water heaters, electric tapes, and kitchen appliances.

On the other hand, air conditioning is the main cause of high electric consumption during summer. It contributes to up to 50%. 

The good about this is that there are ways on how to save on electricity during winter and summer.

  1. The surge in energy costs  

It is imperative to note that the increase in electricity bills may not at all be a result of home electric use. There are other players as well, including the supplies. 

You most certainly get your electricity from a supplier who gets it from a wholesale energy supplier.

Energy suppliers need to recoup the expenses of construction, operational costs, electric transmission and distribution systems, and maintenance of power plants. 

With the increase in wholesale prices even cheap energy suppliers have no choice but to also increase there are costs.

Nonetheless, these are not the reasons why there has been a surge in energy cost after all the costs have always and will always be incurred. 

The reason for the increase in energy cost is the increase in the wholesale purchase price of energy. 

According to Industry group Oil & Gas UK, wholesale gas prices are up 250% since January and have increased 70% since August.

The prediction stands that energy prices Will Rise by 30% in 2022 in the UK.

  1. Shortage of energy supply 

This year the UK has experienced another energy crisis. 

The UK does not rely on coal and nuclear energy therefore the main energy sources in the UK are wind and natural gas. 

They contribute to about 60% of the total energy in the country.

Weather conditions have seriously impacted wind energy and natural gas suppliers from other European countries that supply to the UK including Russia and Norway have experienced shortages.

When there is a shortage of energy supply it automatically means that electricity and gas available will come at a higher price. 

  1. High demand for electricity

From demand and supply, when the demand is high exceeding the supply there is an increase in prices.

This is exactly what happens during winter. The consumption of electricity goes up the top end where it exceeds the supply and energy producers have no choice but to increase the prices. 

The high demand for electricity to heat homes is one of the contributing factors to the increase in electric bills during winter.

If the demand is high and the sources are limited, then there will be a direct increase in electricity bills.

  1. Home appliances and electronics

Weather conditions are just factors directly linked to high energy bills during certain seasons of the year. 

Home appliances and other electronics contribute to the remainder of the electricity consumption by and large proportionate.

The top five energy-consuming home appliances in the UK are;

  • Wet appliances – 25%
  • Consumer electronics – 19%
  • Cooking appliances – 19%
  • Cold appliances – 16%
  • Lighting – 16%

Wet appliances would serve to include dishwashers and washing machines. Consumer electronics are mostly used for entertainment including gaming consoles TVs laptops desktops e t c.

Cooking appliances are the sort of electric items in the kitchen like a microwave, cooker, kettle, etc. Cold appliances include freezers and refrigerators.

  1. Hidden electricity wastes at home

Hidden electricity wastes at home are the small things that often go unnoticed but contribute to increase in your electricity bills.

Let’s categorise them so it’s easier to point where the problem is;

  • Wet appliances – Washing your laundry with warm water.
  • Cold appliances – Placing hot food in the refrigerator and leaving the refrigerator open.
  • Cooking appliances – Not using energy-saving appliances.
  • Lighting – Using halogen and incandescent tungsten bulbs.
  • Consumer appliances – Leaving your electronic appliances unplugged.

How to reduce your electric bills 

Many of the reasons for high electric bills are beyond your control. 

Finally, let’s see the ways to save electricity. Energy consumption at home can be significantly reduced by doing the following;

  • Use energy-saving appliances
  • Home energy monitor 
  • Programmable air-conditioners
  • Replace halogen bulbs with LEDs
  • Unplug appliances, an  not in use 
  • Switch providers
  • Make wiser energy choices 
  • Electricity management