Homes with the lowest Energy Performance Certificate (EPC) rating of G could see bills rise by an average of £558 per year following the Ofgem cap increase, a property listing firm has suggested.
Ofgem announced that the energy price cap would increase by 10% in October, adding £149 to the average household annual bill. This would mean an extra £12 per month for the typical user.
Based on this data, Rightmove calculated that an inefficient G-rated home would see a £558 rise in energy bills on average, while homes with an EPC rating of A would see bills increase by £56.
For a property with an EPC rating of B, energy bills could go up by £102, and for a C-rated home, this may be £159.
Properties with an EPC rating of D might have to pay an additional £225 per year in energy bills after 1 October, while it would be £319 for E-rated homes and £445 for F-rated homes.
Rightmove also carried out a survey of more than 14,000 people and found that nearly three-quarters – 72% – would be prepared to change how and when they used energy if it meant they could access cheaper rates.
This was more likely among renters, with 76% saying they would be ready to adjust their energy use compared to 70% of homeowners. Rightmove said this was probably because renters were less likely to retrofit their homes.
Tim Bannister, property expert at Rightmove, said: “The rising price of energy in recent years means that renters and homeowners are likely having to closely consider their total monthly outgoings when choosing their next home. We know that lower bills is one of the biggest motivators for people to go greener, so we expect over time people will increasingly seek out more energy-efficient properties in order to keep bills down over the long term.
“Our research suggests that if something like a dynamic price cap, where energy is cheaper at less popular times of day, was to be introduced, the majority would welcome it if it meant lower bills.”
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
