Every week the news from the UK energy industry highlights the fact that the energy crisis keeps deteriorating. Prices are going up at an extremely high pace, making certain families worry that next time there is an increase, they will no longer be able to pay for their supply.
The government has introduced a number of measures designed to help families deal with the increasing costs but a solution needs to be found to finally stop the crisis.
Recently the UK government announced that the UK will start focusing more on homegrown energy to boost the country’s energy independence. But can placing more emphasis on homegrown energy actually help put an end to the energy crisis?
The government’s plan
In a press release published last month, the UK government said that the Prime Minister intends to improve Britain’s energy security while at the same time making the UK rely more on renewables rather than fossil fuels. The plan foresaw ‘quicker expansion of nuclear, wind, solar, hydrogen, oil and gas, including delivering the equivalent to one nuclear reactor a year instead of one a decade.’
One of the aspects of the government’s new Energy Security Strategy is to boost homegrown power in Britain. The strategy ‘sets out how Great Britain will accelerate the deployment of renewables, whilst supporting the production of domestic oil and gas in the nearer term – which could see 95% of electricity by 2030 being low carbon.’
As Conservatives explains, ‘This will be central to weaning Britain off expensive fossil fuels, which are subject to volatile gas prices set by international markets we are unable to control, and boosting our diverse sources of homegrown energy for greater energy security in the long-term.’
Generating energy from renewable sources is significantly less expensive than using fossil fuels so the transition has not only environmental but also economic benefits for the country.
Importance of homegrown renewables
As wholesale energy prices are hitting record highs, many countries wish they weren’t dependent on anyone else for gas deliveries. If a country sources the majority of its energy from renewables, its supply is not affected by geopolitical events such as the ongoing war in Ukraine. Moreover, by becoming more energy independent, states can achieve greater resilience and energy security.
Homegrown renewables are a great option also for individual businesses that want to mitigate the impacts the energy crisis has been having on them. By generating their own energy, consumers can detach themselves from what is happening at global markets.
According to Race to Resilience, ‘in the UK, as many as one-third of businesses now generate at least some of their electricity themselves, mostly from solar,’
This shows that the trend is becoming popular. Hopefully in the near future more businesses, as well as domestic customers, will follow the lead.
As Conservatives explains, ‘This will be central to weaning Britain off expensive fossil fuels, which are subject to volatile gas prices set by international markets we are unable to control, and boosting our diverse sources of homegrown energy for greater energy security in the long-term.’
Therefore, homegrown energy can be a solution allowing the UK to prevent future energy crises. But, implementing the government’s plan and moving away from fossil fuels takes time so it might unfortunately be too late to try to use homegrown energy to end the current energy crisis.
How can energy consumers get their discounts on energy bills?
Recently the UK government introduced new measures intended to help the most vulnerable families deal with rising energy costs. In fact, the suggested solutions are not entirely new as the government had previously announced a number of solutions to lower people’s energy bills. Nevertheless, these have now been reviewed and improved given that the energy bills are only getting higher and are expected to keep increasing in the next few months.
Previously, the government had said £200 would be taken off everyone’s energy bills but that people would have to pay this reduction back in installments over the course of five years.
After the latest changes, the discount has been doubled and the government got rid of the requirement to repay it. That means that from October this year, everyone’s energy bill will be reduced by £400 and people do not have to worry about having to save money to pay this discount back at some point.
How can I get the £400 discount?
Households in England, Wales, and Scotland qualify for the discount and you can get it automatically, there is no need to apply for it. The discount will automatically be added to accounts of direct debit and credit customers. If you are using a prepayment meter, the money will automatically be added to your meter. Alternatively, you can receive a voucher that you can then use to top up your meter.
As for Northern Ireland, it will get equivalent funds to distribute amongst people who can then spend it on their energy supply. Nevertheless, it has not yet been announced how it will be done.
What about the £650 payment?
While the £400 discount will be available to all energy consumers in the UK, there is an additional payment of £650 intended for the most vulnerable households. This money will be allocated to around eight million low-income households who ‘receive Universal Credit, tax credits, pension credit and other means-tested benefits,’ BBC explains.
Just like the £400 discount, the payment will be made automatically into bank accounts of eligible energy consumers. The difference is that this payment will come in two installments. The first one will come in July and the other one in autumn. Those who are on tax credits will receive their payments shortly after.
Is there any additional help for pensioners?
Households where at least one person is of pension age will receive the Winter Fuel Payment worth between £200 and £300. On top of that, these homes will receive an additional payment of £300 in November or December.
That means that pensioners will get extra help of £300 in the beginning of winter. This measure will supposedly cover almost all pensioners around the country. Low-income pensioners that claim pension credit can also get the £650 payment for those on benefits. So together they can qualify for £950 in reductions.
While these measures do not offer a sustainable solution to the energy crisis, they can help people, especially those that do not have much income coming in, survive these difficult times.