The UK Government has announced the Great British Insulation Scheme at a time when winters are getting colder and energy costs are soaring. This innovative initiative aims to ease the financial burden on households by offering substantial discounts on energy efficiency improvements to homes.
Anyone who lives in Council Tax bands A to E can benefit from a substantial reduction of £400 on their annual energy bills. Regardless of whether you are a homeowner, landlord or renter from a private entity or housing association, you can take advantage of this remarkable opportunity.
However, if you are a tenant, it is essential to obtain your landlord's permission before proceeding with any insulation installation.
One of the main conditions of eligibility is the Energy Performance Certificate (EPC) rating of your home. If your home is rated between D and G, or if it falls into tax bands A-D in England or A-E in Scotland or Wales, you may be able to take part in this innovative scheme.
How the Great British Insulation Scheme Works
The initiative is based on a mandate for energy suppliers to help their customers reduce their heating bills through the installation of energy efficiency measures.
These measures may include loft and cavity wall insulation, among others, with the cost being partially or fully subsidised, depending on the measure proposed and any property-specific considerations.
The government has set ambitious targets for the Great British Insulation Scheme, aiming to help more than 300,000 households improve their energy efficiency between 2023 and 2026.
The expected result? Households taking part in the scheme could benefit from average annual savings on their energy bills of between £300 and £400.
It is anticipated that more than 100,000 homes will be awarded a level C energy efficiency certificate, thus contributing to the government's objective of reducing fuel poverty.
Similarly, programme operators will also check modelling assumptions to ascertain whether targets such as expected energy savings and bill reductions are accurately estimated.
Whereas the raw participation figures for a scheme may appear satisfactory, a failure to validate the underlying assumptions, such as expected savings per measure, might risk the achievement of wider objectives, such as the reduction of fuel poverty.
Octopus Energy to Refund £178 of Households' Bills
The onset of spring means that many households may have stopped using their heating to save costs. Octopus Energy has now published a guide for direct debit customers on monthly bills.
Customers who pay their monthly invoices by direct debit may notice that credit balances are building up due to the fall in gas and electricity consumption compared with the winter peaks. For some, this means that they wonder why their bills don't go down as consumption falls.
Direct debit payment systems work with fixed monthly amounts to keep bills stable over the seasons. Credits in the warmer months compensate for higher winter consumption without fluctuating payments. However, large credits may justify requests for repayment.
Customers can claim refunds at any time, however, it is prudent to consider the impact on winter bills. Industry data shows that average household credits are £178. Suppliers should review payments periodically to avoid excessive credit.
Octopus Energy explained, in response to a request for credit by direct debit, that credits build up naturally from reduced summer usage in return for regular payments. The company's forecasting tool shows the trajectories of payments and usage balances over 12 months.