As you may have heard, gas prices are set to rise at the beginning of October by around 12%. Around 11 million households may see their bills rise by £139 a year (or £153 for prepay meters) in line with the latest price cap. These are based on typical usages – so your actual bill will vary depending on your usage.
Did you know wholesale Gas prices have surged by 250% since the beginning of the year? That’s a 70% rise since August alone. The National Grid is really under pressure and its site in Kent was evacuated following the blaze on Wednesday morning and they have warned it will be more than six months before the facility can be restored, adding more pressure on natural gas supplies used for generating electricity.
It is believed that as the globe recovers from the Covid-19 pandemic and countries reopen their economies, the demand for global gas has risen. Energy firms buy gas and electricity wholesale and with higher demand and limited supply, prices have shot up to record levels.
What should you do if you’re approaching the end of your tariff?
Martin Lewis OBE (The Money Saving Expert) has said that customers who are approaching the end of their tariff have two options to keep their bills to a minimum:
1) Don’t do anything: You can stick with the price cap for six months as prices may fall next year when you’ll be able to lock a cheap deal in again. However this is dependant on whether the price falls in the next six months.
2) Act fast: Lock in the cheapest one or two-year fixed deals now. However with gas prices rising by the day, you’ll have to act immediately. “You have to look at the whole market,” he said. “Check all comparison websites but watch out as these often focus on commercial partnership deals.”
We get that it isn’t an ideal time for your tariff to end, however these prices fluctuate regularly and there is no saying that they will go any higher or even decrease.
Is now the time to replace your Gas Boiler?
As you can probably tell, we are a little biased. We are a real believer that Air Source & Ground Source Heat Pumps are the future of heating your home. This is only the beginning of the gas price rises and the government, as well as ourselves, has to look to a more renewable way of heating the everyday home. Replacing your gas boiler with a heat pump, in our eyes, is the next step.
You should do your own research but we are a trusted and accredited company that can supply you with your new heat pump. Also, depending on where you are in the country, we may also be available to install your heat pump.
If you have any questions at all regarding replacing your gas boiler with a heat pump please drop us an email or give us a quick call, you can also check out our website!
We very much look forward to hearing from you!