In the Spring Budget there was little announced about the housing sector. There were however a few measures announced that will impact energy bills for both tenants and businesses, as well as thoughts on how the government aims to create more stability in the market in the future. Here is a summary:
Energy Price Guarantee
The government will continue subsidising 27 million households across the country for another three months.
Under previous projections, bills were expected to go up by a further £500 to nearly £3,000 on average per household per year in April – but this will now be delayed until the end of June 2023.
Extra support for energy bills
Those on a so-called ‘prepayment meter’ will soon see their energy prices drop.
Previously these customers have had to pay a little bit extra for their energy, to reflect the fact that it’s more expensive for the supplier to provide these meters. Now, prepayment customers will see their energy bills go down by £45 a year.
What will happen to energy bills in the summer?
The expectation is that the energy price guarantee will fall away, and we’ll move back to the price cap mechanism. Predictions suggest that energy bills will sit at around £2,100 on average at that stage.
When will it be practical to switch energy suppliers to get a better deal?
Once the competitive energy market returns in the summer or into the autumn, it should be possible to start looking again to switch supplier to reduce your bills by accessing a cheaper price.
What about Landlords?
If you are a landlord paying the energy bills for your tenants under a bills inclusive renting arrangement (such as in an HMO), the first recommendation is to make sure that you’re paying by direct debit.
However, to protect against future price increases – and to reduce bills overall – landlords should start looking to introduce energy performance measures into their properties, such as insulation, double glazing, new heating systems etc. This will also help you meet the expected increased Minimum Energy Efficiency Requirements of an EPC level C which will be introduced in the future.
Ensuring future energy supply
A new energy efficiency task force has been formed by the Government, with the aim of reducing the UK’s energy demand by 15% by 2030 compared to usage levels in 2021.
That reduction will cover energy usage across the whole of the UK. Industry experts and stakeholders across the whole sector will be invited to participate.
This won’t solve our energy security needs for next winter, however. Unfortunately, that will still depend upon the international energy markets at the time. We will update you if there are any further Government announcements regarding energy security and supply.
