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Inefficient homes could pay almost £1000 more for gas this winter

energy scale

Analysis from the Energy and Climate Intelligence Unit (ECIU) has found that homes rated band F on the Energy Performance Certificate (EPC) system are set to have a gas bill £968 higher than band C.

With the dual fuel price cap forecast to reach £3,958 this winter, according to figures from Cornwall Insight, new analysis by the Energy and Climate Intelligence Unit (ECIU) has found homes rated band F on the Energy Performance Certificate (EPC) system could 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.

When gas and electricity bills are taken together, those 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.

Table 1. Annual energy bills by EPC band. EPC band G homes have lower energy bills than EPC band F because of the way in which the EPC is calculated, and EPC band G homes often use other secondary sources of heat such as biomass.
Energy Performance Certificate band Annual electricity bill 2022/23 (estimate, £) Annual gas bill 2022/23 (estimate, £) Annual total energy bill (estimate, £) Extra annual bill payments compared to EPC band C (£)
EPC C 2,070 1,806 3,877
EPC D 2,249 2,226 4,474 598
EPC E 2,605 2,581 5,186 1,309
EPC F 3,080 2,774 5,854 1,978
EPC G 3,258 2,322 5,581 1,704

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.

“The ECO insulation scheme has worked well and is knocking at least £600 a year off the bills of fuel poor households, but government is non-committal on doing more. We have to consider security of supply too, but more UK gas won’t come online anytime soon, so insulation is our best bet to shield us from the whims of Putin and lower bills during this cost of living crisis and each year after.”