following the domestic cap increase. With the increase now in full effect, it seems appropriate to examine the effects of this shift and offer our advice to homes and businesses wherever possible. 

So how has the energy price actually affected different consumers nationwide? Did the government take appropriate action to protect individuals and businesses? And what can you do to reduce costs amidst such steep price spikes (with further increases also on the horizon for the rest of the year)?

How Have People Been Affected by the Energy Crisis? 

Perhaps unsurprisingly, the lowest income homes have been most affected by the energy crisis, with many people choosing between heating and other necessities such as food. 

According to Dan Paskins of Save the Children, “The cost-of-living crisis, fuelled by soaring energy prices, is totally unsustainable… People will die in cold homes.” Certainly several alarming interviews have emerged with consumers giving examples of the sacrifices they have had to make in order to save on energy. For example, one article describes how many food banks have even started to reject vegetable donations as “people can’t afford to boil them.” 

The Manager of Iceland Supermarket, Richard Walker, described on a radio program TalkRadio, saying: “Phrases like a choice between heating and eating sound overly dramatic, but it is a reality when you’ve got no money to spare in the first place”. 

With food prices rocketing in conjunction with the energy crisis, it is unsurprising that many of the lowest income households are now struggling to afford these essentials. Walker also went on to state that “I think the cost-of-living crisis is the single most important domestic issue that we’re facing as a country and it is incredibly concerning.” 

One woman, who adopted the name of Nona for an interview with Express.co.uk, describes how her situation “forces her to eat food cold from a tin so she can afford to take a hot shower.” 

For families with additional energy needs, due to health issues, the price increase has been even more catastrophic. In an interview with STV News, one mother explains how her bills will be rocketing £855 per month due to the medical machinery required to support her daughter with complex needs. She adds that she now fears “they’ll become homeless as a result of” this drastic price spike. 

Did the Government Handle this Crisis Properly? What More Could Have Been Done?

One CNBC article highlights the unequal economic consequences of the energy crisis, citing that the “poorest 20% of households will spend 10% of their budget on energy bills, while the wealthiest 20% of households would spend 4% of their budget on energy.”

Alongside harsher consequences for the poorest in society, the government has been criticised for failing to get to the “root of the issue” driving the UK’s energy prices. Friends of the Earth states, the council tax rebate and other temporary measures fail to address Britain’s “overreliance on expensive and polluting fossil fuels and a failure to upgrade inefficient, leaky homes.” 

This statement continues to explain how “the government is considering making us even more dependent on fossil fuels, by considering expanding the UK's supplies of gas and oil, including new licences for North Sea oil and gas and even the return of fracking.” All the while, “gas giants like Shell and BP have announced record profits, with the head of BP referring to his company as "literally like a cash machine".

Alternative measures suggested include “removing taxes from bills or shifting them onto other taxes, as well as making energy bills disproportionately larger for heavy users.” Instead, Friends of the Earth argues that “greater scrutiny of directors and “stress tests” for companies would prevent further bankruptcies and ensure affordable bills for customers”, helping to minimise the economic impacts of the energy crisis. 

Why Switching Supplier Won’t Help

Since the price rise is driven by a cap increase due to growing wholesale costs, the traditional advice of switching energy suppliers to save on bills has become somewhat redundant. 

Many leading market advisors and comparison sites have themselves acknowledged this issue. In fact, Money Saving Expert stated publicly that, "unfortunately, due to the dire state of the market, most can't save by switching right now."

Uswitch has also echoed this sentiment on their website, saying that “in a normal energy market, the best time to switch energy supplier would be when (or just before) you come onto a standard variable energy tariff so you can fix your deal at a lower price. However, given the lack of affordable deals on the market at the moment, it's difficult to say that there's a good time to switch.”

The Mirror states that, in light of this, other important considerations to make in trying to save include “how much energy you use, what sort of energy you use and how you prefer to pay your bills.” 

How Can You Save? 

For homes, small practical measures can make a great difference in terms of your overall energy consumption. These measures include repairing any electrical issues in the home, programming your thermostat and using power strips wherever possible. For a full list of home energy saving tips, we recommend you check out Paylesspower.com’s article. 

If you own or run a business then you’re in luck, as saving businesses money on their energy is GridDuck’s special skill! 

British Gas has published a list of energy saving tips for small businesses which we believe you might find helpful. This list includes points including installing motion sensitive lighting, switching off computers overnight and maximising efficiency on your air conditioning unit (this can be achieved by changing the filter and cleaning vents regularly, as well optimising your settings). 

We would also like to add our own energy top tips for businesses. They are as follows:

1) Stay Informed on your usage

Get an energy audit and install real-time energy monitoring

2) Make It Automatic 

Get help with shifting your energy habits using automated on/off switches, as well as automated alerts whenever you are using too much energy. 

3) Energy Training

As a business, you are heavily reliant on your staff to ensure appliances get switched off at night. By making your energy consumption automatic, you can save employees time. However, it’s best to educate your employees on your plans to save energy, and give them clear guidelines for how to help the business save money and carbon emissions. 

4) Energy Saving Reminders and Checklists

Even fully trained employees may need reminding to save energy. Fortunately, there’s a whole range of free posters and checklists out there to help you keep on top of your energy saving. In fact, GridDuck has published several of these resources ourselves. Why not download our free energy saving checklists for hospitality businesses or farms, alongside our Save Waste in the Workplace poster. 

If you are a business owner or manager concerned about energy prices, we can help. To arrange a 15 minute, no obligation consultation, please use our Calendly booking service.