Published On: Thu, Dec 11th, 2014

UK Energy Bills Drop By £100 This Year

This year, the UK has enjoyed higher winter temperatures than in previous years. October was particularly impressive, as it saw record breaking heat levels across Britain. The unexpected warm weather has been great news for Britons across the country. The latest figures show that the average Briton spent £100 less on heating their home this year in comparison with last year. That means that many households saved a great deal of money over the last few months. Winter is, usually, the most expensive time of the year for the British people, and yet this year has been an exception.

Pound Coins

Cost of heating in the UK

The average cost of heating a home in the UK is around £1000 a year. That figure went up by a massive 60% back in 2012, when the country saw one of its coldest winters to date. If that is the cost of heating a residential property, imagine how expensive Warehouse heating is. This year, customers have spent around £700-800 on heating their home. That is a significant difference. Many people in the UK struggle to heat their house throughout the winter. People on low incomes and old people often can’t afford to pay for gas and electricity bills.

UK company says people used less heating in 2014

Centrica, the UK company who owns British Gas, has reported that fewer people have been using their gas this year. Most people tend to start using their central heating in September in the UK. That correlates with when the weather in the country drops a great deal. This year, Centrica says, people have not used their household heating systems until December. That three-month gap in energy usage has made an enormous difference to people’s finances. Many people across the UK have saved money over the last three months.

Wholesale cost of energy falls

Energy companies could afford to slash customer prices, yet have decided not to. Figures show that this year the price of wholesale energy has fell by more than 20%. That means that mainstream energy providers are paying almost a quarter less for their energy at the moment. Some experts thought that energy companies may pass some of this saving on to their customers. Many people have lost faith in the energy services, and a price cut before Christmas would have been an excellent idea. Centrica have stated that they have no plans to reduce people’s energy bills at the moment. They have said that they buy power in advance, and so the new costs don’t impact current energy prices. They have also said that they have other significant costs within their business, and so can’t afford to cut prices.

Consumers switch to small suppliers

Financial restraints mean that many consumers have turned to small energy suppliers. Green power suppliers have reported that they are now making larger profits than ever. British Gas have lost more than 250,000 customers in 2014. That figure shows that many consumers are losing faith in mainstream companies. The trend is likely to continue into 2015. With large corporations refusing to cut their prices, many people will look elsewhere. Large firms could lose a lot of money to small providers if the trend continues.

Centrica lost money in 2014

On that note, the latest 2014 energy figures show that the national giant, Centrica, lost money this year. The firm have lost many customers in the second half of the year and have also lost out on big profits. In fact, this year Centrica made 26% less than they did in 2013. Officials at Centrica have said that they believe their profits will increase again in 2015.