Rising energy prices: what you should do
On 31st March, aka ‘Meter Reading Day’, energy customers across the country rushed to upload their latest meter readings on their supplier’s website and app before energy prices jumped massively in the UK.
From the 1st of April, most people would pay around £700 per year more for gas and electricity. This increase is because the energy price cap, set by energy regulator Ofgem, increased by 54% to reflect rising costs for energy suppliers.
What is the price cap?
Ofgem’s price cap, introduced in 2019, was designed to put a limit on the maximum amount suppliers can charge for each unit of gas and electricity a customer uses.
The price cap is linked to market prices, so when wholesale energy prices go up, the price cap goes up too. Similarly, when wholesale prices drop, the price cap ensures energy suppliers pass on those savings to customers.
The energy market is facing a massive challenge due to the unprecedented increase in global gas prices. Energy companies cannot afford to supply electricity and gas to their customers for less than they paid for it. The previous price cap, last updated in August, did not reflect the market’s current situation. Energy companies were allowed to pass on these higher costs from April when the new level took effect.
What can you do?
As millions of households across the country face an additional spike in their energy costs, it is undeniable that this will be a very challenging year for many. The current energy market crisis shows why we must reduce our reliance on fossil fuels and continue the transition to an energy system powered by renewables.
In the meantime, there are actions we can all take to help with the rising costs:
1. First always compare prices from different energy suppliers
Usually, when energy bills go up, the best advice is to shop around for a better deal. Unfortunately, better deals are simply not currently available. Right now, it is best to do nothing, as switching your energy supplier could further increase your bills. But keep an eye out as prices change.
You can monitor energy prices from different energy suppliers and compare them across the market using Citizen’s Advice’s impartial energy price comparison tool to be up to date with any changes in energy tariffs.
2. Make your home energy efficient
With the current situation, it’s more important than ever that your household is as energy efficient as possible. From witching appliances off standby to insulating your loft, all measures help make a difference in reducing your bills. Find out more tips in our blog.
If you own solar panels and battery storage, you’d know that this is also a great way to keep your energy costs down by importing less energy from the grid – protecting your household against the volatility of the energy market – while also doing your bit for the planet.
Do you already own a Moixa optimised battery? Get more control over it with our Operation Modes
If you already own an optimised battery from Moixa, you can further reduce your energy costs with our Operation Modes. This recently released feature offers you more control over your battery’s behaviour.
This feature enables you to set your device on either Balance, Scheduled or Smart mode*, and then adjust your choice (for example, if you are planning some changes in your behaviour or want to prepare your battery for a one-off event).
With Scheduled mode, you will be able to control when your battery charges by creating a personalised charging plan and setting up charge and idle instructions (in 30-minute increments) for different days of the week. These instructions will always be repeated weekly and can be repeated for different days of the week.
Scheduled mode is beneficial if you are on a static time-of-use tariff because you can set up a specific charging plan to make the most of your tariff and achieve additional savings. This feature might also be a good option if you want to make a one-off change for your upcoming summer holidays.
When your battery is in Smart mode, its behaviour is optimised by Moixa’s GridShare software. GridShare’s AI identifies your home’s solar generation and consumption patterns alongside weather forecast data and your import and export tariffs. Based on all these inputs, it generates a personalised daily charging plan for your battery.
We strongly recommend that you choose Smart mode if you are on a time-of-use tariff. GridShare is especially beneficial over cloudy days and winter months – when less solar is available. The software will enable you to store energy from the grid when wholesale prices are low, which you can then use at peak times to maximise savings.
If you’d like additional information on Moixa’s Operation Modes and how to use them for different scenarios, please check out our blog post.
For more information on how to switch Operation Mode, please take a look at our Help Centre.
*Smart mode is available for 4.8kWh or larger devices.