New rules, lower bills? Will Ofgem’s Energy Reform save you money?



On 30th July, Ofgem – the UK’s energy regulator – announced a major review that will reshape the way we pay for gas and electricity. While rising energy prices remain at the forefront of homeowners’ minds, many will be wondering if there is relief on the horizon.

What’s changing and why?

As the UK moves away from fossil fuels and embraces renewable energy, the infrastructure needs upgrading. This means that while the unit cost (what you pay per kWh of energy) is expected to go down, the fixed costs (your standing charge) is expected to rise as funding for infrastructure upgrades is passed onto the consumer.

The problem is the current system – made up of a standing charge and unit rate – doesn’t reflect the changes leaving consumers with a feeling of unfairness in the system. Whether you use very little energy or a lot, everyone pays the same daily charge, hitting low income and energy-efficient households hardest.

Ofgem has launched the Cost Allocation and Recovery (CAR) Review looking at how energy bills are structured. It will look to see if fixed costs can be shared differently, whether there is a fairer pricing model that can be used and will look at ways the most vulnerable households can be protected from energy poverty.

While decisions have yet to be made, the review signals big changes are on the way.

What could this mean for you?

It’s too early to say how much your bills will rise or fall under any future changes until it is clearer what the new changes will bring, but it’s clear energy use is becoming more complex. Households are moving away from traditional fossil fuels to heat and power their homes and the increase in EVs, heat pumps and clean energy systems mean demands on the National Grid is rising and upgrades are needed to handle the loads on the increase in demand.

For homeowners, the best way to protect your energy future is to take control of your energy usage.

Why solar still makes sense

Whatever changes Ofgem bring in, one fact remains, the less you rely on the National Grid, the more control you have over your bills. By installing solar, you can reduce your reliance on the grid and limit your exposure to the volatile market of energy prices. You can reduce your reliance on the grid even further by installing a battery storage system that allows you to store extra electricity for use in the evening or when your panels are not generating. The Smart Export Guarantee (SEG) allows you to earn money back for anything you export back to the grid – not only good for your pocket but also helping others use clean, green electricity.

At SolarTherm UK, we make it easy and stress-free to make the switch to solar. As an EPVS accredited installer, you can guarantee our performance, savings and payback estimates are accurate and checked.

Future proof you home with solar

Ofgem’s review could lead to lower bills or just a fairer distribution of existing costs, but why wait to find out how if it will benefit you? By installing solar, you can benefit from lower bills from day one to year 30, it’s the most popular way to future proof your home against energy uncertainty.

By choosing SolarTherm UK you’re choosing quality, expertise and experience. Contact SolarTherm UK today for a free bespoke design package, tailored for your property, usage and future energy needs. No hard sell, just honest, expert advice – we let the figures do the talking.