While efforts to use less power in the UK are paying off, many opportunities remain to become more energy efficient.
As a nation, we’re using less energy than ever. The last time the UK consumed less power over the course of a year, Harold Wilson was Prime Minister and Roger Moore was James Bond. However, while this is good news for the industry and consumers, we could still go so much further. There are many different opportunities to be more energy efficient.
In this article, we’ll talk about the latest government consumption figures and commend these achievements, but we’ll also look at ways to continue saving more energy.
Energy trends
The latest figures from the Department for Energy Security and Net Zero (DESNZ) show how significant the reduction in energy consumption truly is. Here is a selection of some of the most striking numbers:
- Household consumption for both electricity and gas are at the lowest point for 50 years
- Consumption in 2023 was 1.6% lower than in 2022
- Domestic consumption fell by 6.5%, industrial use by 3.4% – both record low levels
- Energy production fell by 9% – the lowest level since 1948 when they started keeping records
- Energy production has fallen by 66% since 1999, the peak of UK power production
- 47.3% of UK energy consumed in 2023 came from renewable sources, another record
- At points during the year, the proportion of energy from renewable sources exceeded 50% for the first time
However, while these numbers are worth celebrating, especially as they’re part of a longer trend of reduced energy consumption, it’s clear that we could do much better.
Improving energy efficiency
One pressing problem (or opportunity) is that we don’t get enough benefit from the energy we use. Research from energy supplier EDF found that the UK’s homes are not insulated well enough.
In an assessment of more than 25 million buildings, EDF found that 55% of UK homes are only insulated well enough to meet standards set out in the 1970s, lacking in modern insulation technology such as floor insulation, loft insulation and double glazing. Only 18% of properties meet modern building standards, which clearly isn’t good enough.
What’s more, most homeowners (61%) are unaware of their home’s Energy Performance Certificate Rating. Even if they are, many choose not to upgrade their home’s insulation due to cost issues. It’s understandable; we’re still in a cost-of-living crisis, and while insulating your home better could lead to lower bills, most people have other priorities.
The government introduced the Great British Insulation Scheme to address this issue, helping low-income households with their insulation costs. However, industry experts believe this scheme should be extended to more homeowners, allowing more consumers to save money and the nation to use even less energy.
Prices are moving in the right direction
As covered in previous articles, wholesale energy prices are falling after peaking in 2022 after the Russian invasion of Ukraine. This has led to a drop in the Ofgem energy cap, which should lead to lower bills for all. There are several reasons why this has happened, not least a milder winter weather-wise than in some previous years. The rise of renewable energy has also helped, as it is less expensive to produce and store.
However, the drop in energy consumption has also helped. Reducing our energy consumption can lead to lower prices in two ways. The first reason is simple: your bills will be lower if you use less energy. The second is more complex but just as relevant: lower demand means wholesale prices fall because it shifts the equilibrium point where supply meets demand.
Again, while this is excellent news, we could always achieve more. Another price rise is never out of the question, with volatility in Russia and the Middle East always an issue. We should use this break in sky-high prices as a time to consolidate and reduce energy consumption even further.
Looking to the future
It’s great to see the recent trend of lower energy consumption and lower prices. We hope it continues for years to come. However, when there are price rises, it’s always the consumer who suffers the most. By making simple changes now, such as helping get proper, modern insulation standards into more homes, we can use less energy and safeguard consumers for the future.