So, What help is available for the cost of electricity? We have taken a look at the package of measures to help and we have put down information gathered below.
- The Energy Price Guarantee reduces household energy bills over the next year, with a typical family paying around £3,000, saving £500 per year.
- Businesses, charities and public sector organisations will pay less than half the expected prices this winter under the Energy Bill Relief Scheme from October
- Government energy support makes up the largest single component of the Growth Plan, protecting jobs and livelihoods and curbing inflation by 5 percentage points
Households Costs Per KWH
In real terms this means the average variable costs of electricity will increase from 34p Per KWH to 52p Per KWH from March 1st 2022. In terms of costs this would have been going up to 52p Per KWH without the governments intervention. Many home owners are planning ahead with Solar PV and Battery storage systems to reduce the risk of energy inflation and hyper inflation.
Business Costs Per KWH
British businesses have also been experiencing significant increases in energy costs, with some reports of more than 500%. Businesses, charities and public sector organisations will also be protected through the Government’s Energy Bill Relief Scheme from October 1st 2022 over the next six months.
This support is equivalent to the Energy Price Guarantee put in place for households and similarly discounts price per unit of gas and electricity, meaning businesses and others will pay wholesale energy costs well below half of expected prices for this winter. Many businesses are now planning there Solar PV projects to generate there own clean energy and enjoying pay backs within 5 years and ROI 25%.
Whilst we welcome the support given from the government, common sense and logic explains that schemes such as the Feed In Tariff 2010-2019 was a massive success and had the funding carried on we would have not been as exposed as we are now. Generating our own clean energy must be the way forwards to reduce our need for harmful Carbon generating power sources.
The SEG launched on 1 January 2020 and is a government-backed initiative. The SEG requires some electricity suppliers (SEG Licensees) to pay small-scale generators (SEG Generators) for low-carbon electricity which they export back to the National Grid, providing certain criteria are met.
