Electricity, gas and a year of disruption

A year ago, this weekend, few knew that the Ukraine had a yellow and blue flag, was the world’s fourth largest producer of wheat and that Russia produces as much oil as Saudi Arabia and controls the gas market in Europe. On October 1, 2021, a new winter energy price cap for the average house of £1,293 was announced.

Now even with a massive state subsidy, that cap is doubling to £2,500 as we enter winter 2022, (although we will all receive a £400 discount).

Within this doubling hides some important, but difficult to find, detail and messages to compare with a year ago.

The average home uses approximately 4x the energy units of gas than electricity.

The variable rate of electricity is rising 1.6x but gas 2.6x.

This means that electricity per unit has gone from 5.3x the cost of gas to 3.3x.

The standing charge on electricity up 1.8x but gas 1.1x, reducing it from 15 per cent to 11 per cent of the total, (£273 for everyone before the meters use a single kilowatt).

Last year the average house bill was 55 per cent electricity and 45 per cent gas.

Now it is the other way round.

RBWM dwellings use 20 per cent more energy than the country average and some affluent areas are 50 per cent higher (larger homes and uncontrolled use).

What does this tell us?

Firstly, gas is mainly used for heating, and we heat more in the winter. Gas is proportionately rising significantly more than electricity, therefore saving by reducing thermostat settings, having an efficient boiler, and investing in home insulation, are evermore financially compelling, let alone reducing our carbon footprint.

Secondly, who would bet against another new PM in the next year with new policies.

We are in unstable times so securing our own supplies with such as solar selfgeneration and community generation schemes along with a general transition to electricity become imperatives.

To help your budgeting the new rates are: Electricity: 34p/KWhr and 46p daily standing charge

Gas: 10.3p/KWhr and 28.5p daily standing charge

Multiply your own usage by the rates and add £273 (standing charge) then subtract £400 grant and you have your new annualised bill.

Without the state intervention the average UK household would have to find an additional £1,400 over and above the discounted price rises.

However, let us have perspective, how lucky we are to have homes to heat, many in Ukraine lost theirs.

PAUL STRZELECKI

Cookham