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Energy Price Cap – Comment

We heard from Labour Party in the 2015 General Election their solution to manage rising Energy Prices. Again we hear similar voices from the Conservative Party – An Energy Price Cap.

But is this really the Answer? Or is it a fools errand.

Energy Price Cap – A Manifesto Promise

An energy price cap could involve setting a maximum cost energy suppliers can charge for the average standard variable bill.

In principle, it sounds like a good idea. However, we are concerned about the level of competition in the energy market. This type of manifesto promise has the potential to create higher energy bills.

Energy firms could bump up their standard energy rates to the highest level possible. It could also lure homeowners into a false sence of security.  With an Energy Price Cap there will be less of an incentive for energy companies to drive down prices and compete for new Clients.

This type of manifesto pledge does not cost a future government anything.  Unless, they were prepared to drive down the cost of energy by subsidising each and every UK homeowners energy bills.  We cannot see that happening!

What is the Alternative

This is a sticking plaster to a much bigger problem.  The UK has one of the coldest and dampest housing stocks in Europe.  There have been government incentives to help improve the energy efficiency of people’s homes.  But these did not take an holistic approach to the overall energy use of the home.  Instead of solving a problem they created a potentially more dangerous problem. Following cavity wall and loft insulation, homeowners reported black mould in places never seen before.

For existing homes:

Our next government should reduce VAT on energy home improvements from 20% to 0%. In fact, they should do this for all extension and remodelling works.

For new homes:

All new homes should be designed to the Internationally recognised Passivhaus.

The only way you will pay less for your Energy Bills is if you use less. You take back control from the Energy Companies and you control the amount you pay for your Energy Bills.  The Passivhaus energy performance concept will create tiny energy bills.  We are involved in a project in Blackburn which will help to provide these new homeowners with greater freedom from rising energy prices.  You can learn more about this project by clicking here.

Passivhaus Development | Blackburn

Energy price cap Land for sale with planning permission Passiv Haus Passivhaus Lancashire - Wensley Meadows

PS9 Architects Manchester are experts at designing, developing and building energy-efficient homes.  If you are interested in reducing your energy bills.  Why not talk to a professional.  Contact us on 0161 401 2009.  Alternatively, use the contact form by clicking here.

 

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Energy Price Cap - Comment
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Energy Price Cap - Comment
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A energy price cap could involve setting a maximum cost energy suppliers can charge for the average standard variable bill. In principle, it sounds like a good idea. However, we are concerned about the level of competition in the energy market. This typ
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PS9 Architects Manchester
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