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Christmas Home Energy Bills

Christmas Tree

Christmas is an exciting season for all the Elf's out there. However, it's no secret that it can get very expensive. In 2021, there's been plenty of media coverage of rising energy prices, and off the back of the Covid-19 pandemic could be a struggle for many UK families.

When it comes to the financial strains of Christmas, home energy is always a hot topic. In recent months the issue has been propelled even further into public consciousness. Media coverage of lorry driver shortages, supply chain problems, and bust suppliers has caused concern for many families. 

We have created this guide to help relieve a little bit of the financial pressure of the colder winter months when it comes to home energy.

Winter Home Energy Advice 

As home energy prices rise, it is wise to review some of the best-kept secrets in the sector. Experts predict that the UK will face above-average snow and lower temperatures during this winter. Not ideal timing with how much energy costs at the moment.

Here are some changes you can make this winter to become more energy-efficient to reduce those energy bills.

  • Turn off unused appliances at the wall - this may seem pretty obvious, but one thing that many of us forget or choose to ignore. Switching your television, plug sockets and other larger appliances off at the wall can help you save energy.

  • Use the gas fire (sparingly) - we know gas prices are through the roof at the moment. However, gas fires typically use less energy than electric fires and are up to 90% more energy-efficient. Simply close the door of the living room, and heat the room with the fire and turn it off.

  • Simple draught-proofing/ maintenance - simply draught-proofing your windows with curtains, sealant and making sure you have not covered your radiators can have a huge impact on your energy consumption. Make sure you bleed your radiators before the height of winter to ensure that they are efficient.

  • Service your boiler - this can cost a little bit of money, but a full service will make sure your boiler is operating efficiently and not eating away at your energy usage. The tradesmen will usually bleed your radiators as part of the service. 

  • Go smart - investing in a smart thermostat can help save money without you worrying about constantly adjusting the heating. You can also get smart plugs to put those Christmas tree lights on a timer!

Costs of Christmas Lights 

Now we have covered the basics, it's the cost associated with the festive season eating into your energy usage. Christmas lights are one of the shining stars of Christmas. Some families invest thousands of pounds into creating intricate displays, whilst others settle for fairy lights.

In 2020, towns and cities across the UK spend £292 per thousand people on Christmas lights, and the average display cost £52 per household.

It is difficult to predict the cost of Christmas lights per unit this year, especially given the recent boom in energy prices. Some households also really go to town and 'Deck the Halls'. Energy costs fall into the background when people are budgeting the costs of the festive season, leaving many with large bills in gloomy January.

Here are some great money-saving tips to help reduce the costs of the holiday season:

  • LED lights - many UK households are still using the old incandescent lights. Upgrading your fairy lights to the more energy-efficient LED lights can help reduce that energy bill. Incandescent bulbs consume up to 80% more energy than modern LED lights.

  • Less is more - consider toning the display down a bit. This doesn't mean being a complete grinch. Sometimes less is more when it comes to holiday lights. Remember that the holiday season is about spending time with your loved ones.

Cost of Christmas Dinner Home Energy 

Although it does not cost much to power a Christmas dinner, the cost of energy and produce adds up. On Christmas Day 2020, a traditional turkey dinner with all the trimmings cost anywhere from £3 to £4.50 to cook. 

Cost of Christmas Home Energy for Electronic Gifts 

Electronics have become a staple gift for children across the country. Given the current energy problems, it pays to understand how much home energy modern electronics use. 

  • It costs £0.06 to power a PS5 for one hour. 
  • It costs £1.86 to power a Galaxy S21 for a year.
  • It costs £2.48 to power an iPhone 13 for a year. 
  • It costs 3.6p per hour to power an Xbox Series X. 

Please note that these prices are averages. 

Whilst this does not seem like a lot, think of how many gadgets you have in your home. Then add all these up, and it is easy to see how the total average cost increases. Not to put a dampener on the holiday spirit, but it is always wise to ensure electronics are turned off at the wall when not in use.

What Happens When Energy Suppliers Go Bust?

In recent months, energy giants like Igloo Energy, Enstroga, and Symbio Energy have all gone bust. This development has come as a surprise to people who are out of the energy sector loop. 

Ofgem will move all affected customers to new suppliers, who will automatically put them on standard variable tariffs. These types of tariffs are the default and most expensive option. To combat expensive home energy bills, consumers should arm themselves with all the information they need to switch tariffs

Ofgem’s New Home Energy Price Cap

Christmas energy costs are set to rise this year due to Ofgem’s new price cap. The new price cap is set to add an additional £139 to the average household bill.

Ofgem’s energy cap is based on wholesale energy prices. Over the last six months, wholesale energy costs have risen more than 50%. As a result, Christmas energy costs will be higher than ever. 

From the 1st of October, 15 million people will be impacted by this change. Consumers on default tariffs who pay by direct debit will see an increase from £1,138 to £1,277. Those who opt for a prepayment tariff will experience a £153 increase from £1,156 to £1,309. 

Despite the increase, this price cap is put in place to protect consumers. It stipulates just how much suppliers can charge per unit for electricity and gas. The price cap is reviewed twice a year. On its own is quite manageable and expected, but paired with soaring wholesale gas prices that are putting dozens of energy suppliers out of business, it is causing some issues.

With the season total average cost increases, it is set to cost UK households a little bit more with a colder winter approaching than the ones of previous years.

Consumers should note that the price will change again in March 2022. Based on our knowledge of energy supplies around the globe, we predict that prices will rise even further. 

The energy cap has risen because energy is at an all-time high level of demand. Europe experienced a cold winter last year, which put pressure on suppliers. Gas supplies were much lower than usual. As we have emerged from lockdown, the increasing demands on energy supplies have created a crisis. 

How to Avoid the New Home Energy Cap?

Christmas home energy costs do not have to break the bank this festive period. If you are on a fixed tariff, you do not have to worry about the recent market cap rise. The rise will only affect you when your existing contract has finished and you need to find a new energy supplier. Fixed unit prices are based on wholesale energy prices. Even if you want to secure a new fixed deal, you will pay more per unit. 

People who are not on fixed tariffs should switch as soon as possible. By securing a fixed unit price, you can protect yourself against future rises and ever-rising Christmas home energy costs. If you are on a standard variable rate tariff, you will be able to make the switch without incurring any exit fees. 

Compare Home Energy Tariffs

Whether you are concerned about the cost of Christmas lights or the cost of radiators in winter, you should compare your tariff. Comparing your tariff is the easiest way to reduce your overall home energy bills. 

At Love Energy Savings, it has never been easier to find transparent information about your monthly bill. Simply, put your details into our comparison generator and find the best energy deals within minutes. Our experts will provide you with a list of suppliers and tariffs that suit your situation. 

Compare Tariffs

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