Energy Bills May Keep Increasing - Take Action

10th November 2025

it's wise to increase savings now to prepare for higher energy costs through 2026 especially for households and small businesses. While the UK government is offering targeted support, it won't cover everyone, and bills are expected to remain above pre-crisis levels.

Despite some recent dips, energy prices are forecast to stay elevated.

Ofgem’s price cap algorithm continues to adjust quarterly, and predictions from suppliers like EDF and British Gas suggest that costs will fluctuate but not return to pre-2020 levels anytime soon. For rural households and retailers, this means budgeting for sustained pressure on energy bills.

The government is stepping in—but selectively. From April 2026, around 500 of the UK’s most energy-intensive businesses (like steel, chemicals, and glass) will receive up to 90% discounts on electricity network charges, saving over £400 million annually. However, this support is limited to large industrial firms and does not extend to small retailers or households.

For everyday consumers, proposals like tax-free electricity or VAT cuts have been floated by think tanks such as Nesta, which argue these could reduce bills by over £150 and ease inflation. But these measures are not yet policy, and their future depends on political will and fiscal priorities.

In short, government help will be partial and targeted, not universal. That makes personal savings and proactive energy planning essential. Whether it’s upgrading insulation, switching to fixed-rate tariffs, or joining community energy schemes, the best defence is preparation.

Rural Household Energy Savings Plan (2025-2026)

Phase 1: Immediate Cost Control (Nov 2025 – Mar 2026)
1. Review Your Energy Tariff

Check if you're on a standard variable rate. If so, switch to a fixed-rate deal with a reputable supplier.

Use comparison sites like Uswitch or Energy Helpline to find rural-friendly tariffs.

2. Reduce Winter Consumption

Lower thermostat settings by 1–2°C and wear layered clothing indoors.

Use draft excluders, thermal curtains, and seal gaps around doors and windows.

Limit use of electric heaters and tumble dryers—opt for air drying and hot water bottles.

3. Apply for Winter Support

Check eligibility for the Warm Home Discount (£150 off electricity bills).

Explore local council schemes or fuel poverty grants, especially if your home is off-grid or oil-heated.

Phase 2: Spring Efficiency Upgrades (Apr – Jun 2026)

1. Schedule a Home Energy Audit

Contact Home Energy Scotland for a free assessment and advice tailored to rural properties.

2. Invest in Smart Tech

Install a smart meter to track usage and identify waste.

Use programmable thermostats and timers for heating and hot water.

3. Apply for ECO4 or ECO5 Grants

These government-backed schemes can fund insulation, heat pumps, and solar panels.

Priority is given to low-income households and older homes with poor EPC ratings.

Phase 3: Summer Savings & Resilience (Jul – Sep 2026)

1. Build a Monthly Energy Buffer

Set aside £50–£100 per month in a dedicated savings account for future energy spikes or repairs.

Use summer months to reduce usage and bank savings.

2. Explore Community Energy Options

Join or start a local energy co-op. Some rural areas offer shared solar or wind schemes with discounted rates.

Check with your local development trust or community council.

3. Prepare for Off-Grid Contingencies

If reliant on oil or LPG, consider bulk buying with neighbours to reduce costs.

Explore battery storage if you’ve installed renewables.

Phase 4: Autumn Readiness (Oct – Nov 2026)
1. Service Heating Systems

Ensure boilers, heat pumps, or stoves are serviced before winter.

Bleed radiators and check insulation in lofts and pipes.

2. Reassess Tariff Options

Review your fixed-rate deal before renewal. Consider green tariffs with community reinvestment options.

3. Update Your Budget

Forecast energy costs for winter 2026–27 and adjust your savings plan accordingly.

Include emergency funds for unexpected repairs or price surges.