Household Energy Spending: 5-Year Rise

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Want to reduce energy costsA recent report1 conducted by the Office for National Statistics indicated a significant rise in household energy costs since 2012. Despite a decline in average energy usage, a 55% increase in monthly spend on household energy was recorded. With energy bills predicted to rise further over the next six years, looking at money efficiency where energy bills are concerned is a sensible option.

Saving money on heating

Having a cost-effective heating system can make a world of difference to any homeowner. The good news is that, if you have a central heating system, there
are plenty of options for energy-saving improvements:

  • Fit better controls to make sure your boiler provides heat where and when you need it. This could save owners of a typical three-bedroom semi-detached
    house £70 – £150 per year.2
  • Switch to a lower-carbon fuel. You can find out more on which renewable systems suit your home on the Energy Saving Trust website. Make any insulation
    improvements you can afford, including draught-proofing.
  • Consider using chemical inhibitors for older heating systems. Using this can reduce the build-up of sludge and scale in your heating system, ensuring it
    runs more efficiently

Improving electric systems

It’s no secret that electric is the most expensive form of fuel available. Households with storage heaters can save money in the long term by installing a
gas boiler. Although this is an expensive option initially at around £2,300, over time, the boiler will eventually pay for itself. This should cut your
annual bills down by half, saving the average homeowner just over £300 in one year. If you’re unable to replace your storage heaters, then get a good
understanding on how to use their thermostats and controls effectively.

Insulation is key

The better insulated your home is, the less you’ll pay out in energy bills. If you’re interested in insulating your home but don’t know where to start, the
first step would be to get a Home Energy Check from the Energy Saving Trust. This helps you plan what areas of your home would benefit from energy-saving
improvements — there are so many areas you can focus on, and it’s good to narrow it down:

  • Roof and loft insulation could save you well over £200 a year on your energy bills. At an installation cost of around £400 (depending on your property
    type), it’s well worth investing in.[3]
  • A whopping one-third of heat is lost through uninsulated walls — wall insulation will save you money and heat. You could save around £140 on your energy bills per year with cavity wall insulation.[4]
  • Draught-proofing is one of the cheapest ways to save energy in any type of building. To draught-proof, simply block up any unwanted gaps which might be allowing warm air to escape. You can expect to save around £10 – £50 a year for making this simple change.5

1Office for National Statistics. (2002-2012). 5 Facts about household energy spending in the UK. Retrieved 12 May 2014 from http://www.ons.gov.uk/ons/rel/household-income/expenditure-on-household-fuels/2002—2012/sty-energy-expenditure.html
2Energy Saving Trust. 2014. Thermostats and Controls. http://www.energysavingtrust.org.uk/Heating-and-hot-water/Thermostats-and-controls
3Energy Saving Trust. 2014. Roof and Loft Insulation. Around £250 per year saving on a detached house. http://www.energysavingtrust.org.uk/Insulation/Roof-and-loft-insulation
4Energy Saving Trust. 2014. Wall Insulation. Based on a typical house with cavity walls http://www.energysavingtrust.org.uk/Insulation/Wall-insulation
5Energy Saving Trust. 2014. Draught-Proofing. http://www.energysavingtrust.org.uk/Insulation/Draught-proofing

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Jennifer G. is a Social Media Associate at Enova International, Inc., and is interested in finding new and creative ways to be financially savvy.

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The information in this article is provided for education and informational purposes only, without any express or implied warranty of any kind, including warranties of accuracy, completeness or fitness for any particular purpose. The information in this article is not intended to be and does not constitute financial or any other advice. The information in this article is general in nature and is not specific to you the user or anyone else.