Youtility

Boiler Upgrade Scheme Applications Have Tripled Year-on-Year! 📈🔥 The UK Government's Boiler Upgrade Scheme, designed to support homeowners in replacing old boilers with efficient heat pumps, has seen a surge in interest this past year, with applications tripling compared to last year. In September alone, over 3,000 households applied for the £7,500 grant, which helps cover the cost of a new heat pump and its installation. While the grant is available for any low-carbon heating system, air source heat pumps have been the clear favourite, making up 97% of installations so far. The Government has allocated £200 million for the scheme in the next financial year to support this trend towards greener, more sustainable home heating. As demand grows, the shift to low-carbon heating is set to keep gaining momentum!

Reasons for consumers to switch. Ofcom has introduced new regulations that ban mid-contract price rises to give consumers greater certainty and control over their bills. You may have noticed that many telecom providers—including mobile, broadband, television, and home phone services—have previously included small annual price increases in contracts, often linked to inflation. For example, you might have seen a 3.9% increase last year, typically implemented around March or April. However, many consumers may not fully understand the impact of inflation-linked terms, such as RPI or CPI. To address this, Ofcom has taken action. Starting on 17th January 2025, providers of phone, broadband, and pay-TV services will no longer be able to include inflation-linked or percentage-based price increases in new contracts. This is a catalyst for consumers, ensuring more transparency and stability in their contracts. It's also a great opportunity to help consumers switch and avoid unexpected price hikes, allowing them to manage their bills more effectively.

Ofcom data shows how competition within the telecoms space have helped bring down the average price for consumers over the past 5 years. Also full fibre broadband availability has grown from 6% to 57% and continues to grow. A great reason for why consumers would consider switching.

Ofgem wants to support innovation within the energy market Ofgem is focused on supporting retail energy suppliers in introducing innovation to the market. It is looking to change licensing rules to help support. This would see making licenses more flexible. These changes are expected to support the movement to energy as a service. These are services that combine/bundle other products or time based pricing. The changes to the licensing will mean new products can be bought to market without the need to change legislation. The aim is to bring benefits to consumers. The regulator is considering making licensing more flexible, which could include reforming requirements for all suppliers and expanding options for restricted or individual licenses. This would allow new energy products and services to enter the market more quickly, without the need for new legislation. The regulator (Ofgem) is seeking feedback on these measures to determine the best approach for the market and consumers.

So when can a consumer switch energy? if you are on a fixed tariff have 49 days or less before the end of your fixed term then you can switch. If you are on a variable tariff you can switch anytime. You need to ensure you have less than 1 months money in debt with your supplier in order to switch. Over 90% of consumers are on a standard variable tariff so if they are offered the right tariff they can switch.

#energysaving #switching #energyswitching #savemoney #helpconsumers

#energy #switching #pricecap #consumer #savemoney

This November Ofgem announced the UK energy price cap from January 2024 will be £1,928 for the average UK home. H1 2023 saw over a million fuel switches despite the majority of energy suppliers not actively acquiring new customers - a 68% increase on H1 2022 but down 75% on H1 2021. We expect to see this trend accelerate in 2024 for a number of reasons: 💷 Consumers are seeking certainty around their bills 💡 Many consumers haven’t chosen their current supplier  🏛 Saving opportunities will start to materialise ⚡ 87% of consumers are on variable tariffs, a historic high The six biggest suppliers account for 92% of the domestic energy market, with Octopus Energy now the largest in the market accounting for 21% of all UK energy customers. Ofgem Chief Executive, Jonathan Brearley said: "We are seeing the return of choice to the market, which is a positive sign and customers could benefit from shopping around with a range of tariffs now available offering the security of a fixed rate or a more flexible deal that tracks below the Price Cap.” At a high-level, energy suppliers are divided into two broad groups: 1. Those looking to grow their customer base... typically the newer entrants. 2. And those looking to retain & grow high value customers... more attributable to incumbents and a selection of new entrants. Their business models have evolved to prioritise retention of existing customers and revenue generation from value added services beyond the supply of energy e.g. electric car charging, solar panels, boiler support and heat pump installations. This type of customer targeting is a real opportunity for banks and fintechs to support suppliers in surfacing the right products to customers. To learn more about how we can support and get access to our longer form report, please DM Tyler Boyd or email [email protected]. #energy #fintech #startup #embeddedfinance