The latest energy price cap increase is higher than many anticipated, however checking your boiler and making a potential change could help you offset the rising cost and then some
UK households are being urged to check their boilers ahead of the energy price cap rise, announced today (August 27), which will see energy bills increase once again when Ofgem’s price cap changes later this year.
Gas and electricity prices are set to rise for millions this autumn, with a two per cent increase from October 1 for a typical household in England, Scotland and Wales, according to industry regulator Ofgem.
The hike, slightly more than expected, will see bills rise by approximately £2.93 a month for the average household, resulting in homes on a default tariff paying £102 for what currently costs £100 per month.
One second task ‘100% saves you money’ at home as Ofgem announces price rise Five money changes happening in September that could save you £1,000s
In light of this impending price rise, experts warn that people could already be losing hundreds of pounds annually due to outdated boilers – and stress that now is the time to check your appliance’s rating.
Adam Knight, lead engineer at BOXT, suggests that replacing an old boiler with a modern A-rated one could cut your annual energy bill by over £500, without altering your heating or hot water usage.
“Heating and hot water makeup more than half of your annual energy bill,” Adam points out. “If your boiler’s over eight years old, chances are it’s not running at full efficiency. Most people don’t realise how much their boiler is quietly costing them.”
He added: “If you live in a detached property and your boiler is rated G, you could be burning through an extra £569 a year, which is a third of the cost of a new boiler installation at BOXT, whose prices start at £1,690. That’s money that could be going towards groceries or paying off your mortgage.”
The latest analysis shows exactly how much typical homeowners could save on their energy bills by switching to an A-rated boiler, using figures from Ofgem for standard energy consumption and usage rates.
Boilers get graded from A to G based on how efficiently they work. An A-rated boiler performs at peak efficiency (usually 90 per cent or higher), whilst a G-rated model can plummet to just 70 per cent, which means almost a third of the energy you’re paying for is wasted, reports Manchester Evening News.
If you’re living in one of these five typical UK property types, here’s the annual savings you could save by switching from a G to an A-rated boiler, according to BOXT:
- Detached homes: £569
- Semi-detached homes: £361
- Bungalows: £315
- Mid-terrace homes: £295
- Flats: £131
Making the change to a G-rated boiler in a semi-detached property could slash your bills by £361 each year, representing a whopping 21 per cent of the average UK energy bill which is expected to hit £1,737 annually. The efficiency of your boiler is essentially the percentage of fuel it uses to heat your home.
For instance, if your boiler has an efficiency of 88 per cent, this means that 88 per cent of the energy is used to warm your radiators and water, while the remaining 12 per cent is lost through the flue or powers the system itself.
How to find your boiler’s efficiency rating
To find out your boiler’s energy rating, start by looking for a sticker or label on the boiler unit itself. The energy label should be clearly displayed on newer models. Next, refer to the user manual or installation documents, or search the model number online to find official specifications.
“Knowing your rating is the first step to understanding how much energy and money your current system is wasting, and whether it’s time for an upgrade,” says Adam.
While the cost of a new boiler might seem steep, rising energy prices mean the savings you make on your energy bill will significantly offset costs, and you’ll recoup your money in energy savings quicker than you might expect.
According to Which?, the average cost of a new gas combi boiler including installation is £2,597. If you live in a detached property and upgrade from a boiler with a grade G efficiency rating, you could have recouped the cost of your new A-rated boiler in just over four and a half years.
