New Government rules on white goods could save £75 on average Energy Bills

What are the new rules?

With the average energy bill set to rise sharply thanks to a rise in wholesale energy prices, the raising of the energy price cap and the increased energy billing costs associated with the Covid-19 lockdown the government has announced new rules designed to help reduce energy bills.

Ministers in Westminster announced the introduction of new tough rules for electrical products to tackle ‘premature obsolescence’ – a short lifespan deliberately built into some of the most energy demanding products available.

The new rules will force manufacturers to make spare parts available for their goods to consumers for the first time as well as ensure that electrical appliances can be easily repaired.

Currently, white goods such as washing machines and fridges are some of the most energy-intensive products in the average household. Making sure that they are built to last and easy to repair is according to the government expected to reduce energy bills by as much as £75 per year.

"Now the UK is an independent nation outside the EU, the EU emblem on energy efficiency labels has also been replaced with the Union Flag," the government said.

Also read: How should Energy Suppliers explain Energy Bill Increases?

Impact on Energy Suppliers

The new rules are unlikely to impact energy supplier income from consumer energy bills too much due to the 11 million households who will see their bills rise £90 as a result of Ofgem hiking the energy price cap.

The new price cap comes into force on 1 April and will see the cap rise by £96 to £1,138 for standard dual fuel and by £87 to £1,156 for prepayment meter users.

Only if those consumers on standard dual fuel tariffs switch to cheaper tariffs or new energy suppliers en masse are suppliers going to see a bit of an impact. Despite increased awareness and ease for customers to switch energy suppliers, it is unlikely a substantial number will take the chance to do so.

Energy suppliers are also likely to see an increase in income as a result of the lockdown effect. With 12.5 million people working from home, cold weather and the price cap rise, energy bills are set to rise sharply.

According to Forbes Advisor UK, 7 million UK households could spend an extra £900 million on gas and electricity.

Also read: How can Energy Suppliers reduce Energy Billing Errors?

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Whether you’re looking for electricity and gas systems or support on starting an energy supply company, Dyball Associates can help.

Further Reading

Electricity prices at multi-year highs as low levels of wind generation see the UK turn to imports

Energy Suppliers still installing tens of thousands of SMETS 1 smart meters

18 Energy Suppliers told to refund a million energy consumers by Ofgem

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