Households with poor efficiency ratings will have to cough up nearly £1,000 more on their energy bills this year than other well-insulated homes, according to new analysis from the Energy and Climate Intelligence Unit (ECIU).
The group found found homes rated band F on the Energy Performance Certificate (EPC) system, a measure of the home’s efficiency will have a gas bill £968 higher than a home rated EPC band C, the Government’s target for 2035.
The average home in the UK is rated band D and these homes will pay £420 more for their gas this winter, compared to an EPC band C home.
Wholesale gas costs are expected to add £2,500 to energy bills during the gas crisis – with Cornwall Insight forecasting energy bills well over £4,000 per year over the coming months.
This includes electricity as high wholesale gas prices also have a knock-on effect in the power market.
When gas and electricity bills are taken together people living in the worst rated homes will pay almost £2,000 extra compared to EPC band C, and the average EPC band D homes will pay almost £600 extra.
It has been reported that the Government has opted against doubling the Energy Company Obligation (ECO) scheme, which aims to ramp up energy efficiency and reduce fuel poverty.
However, ECIU analysis has also found that energy efficiency schemes such as ECO have contributed to savings of £1.2bn per year under current prices, which will rise further under higher winter prices.
Jess Ralston, Senior Analyst at ECIU said: “These stark differences between highly insulated and poorly insulated homes show the real-world impacts insulation could have in time to dent exorbitant bills this winter. The most vulnerable, such as the elderly, tend to live in colder homes and these are the groups that are being placed at risk by inaction from the government on energy efficiency.”