Warning over ‘unreliable’ energy bill codes that could end up costing you thousands of pounds
HOUSEHOLDS are being warned over “unreliable” energy bill codes that could end up costing them thousands of pounds.
Energy Performance Certificates (EPCs) tell you how energy efficient a building is, with A being the most efficient and G being the most inefficient.
The system has been in place for 17 years, but consumer champion Which? has warned that EPCs are “unreliable” and “in desperate need of reform”.
Home-owners look to the rating system as a first step in getting advice on reducing their energy use and switching to low-carbon heating.
Plus, access to grant funding or “green” financial products, such as loans or mortgages, is often contingent on meeting certain EPC-based criteria.
These products essentially reward you for having an energy-efficient home by offering more favourable rates.
Green mortgages, for example, can offer lower mortgage rates, cashback when you take out the mortgage, or additional borrowing at lower rates.
Higher EPCs also allow home-owners to command a higher sales price or attract tenants if they are looking to rent their home.
Which? booked EPC assessments on behalf of 12 home-owners across England, Wales and Scotland.
They were all living in homes built between 1650 and 1999, ranging from a one-bedroom flat to a five-bedroom detached house – during February and March this year.
The results were “riddled with inaccuracies” and the advice the home-owners received was often “unhelpful”, Which? said.
It said one home-owner never received their certificate following the survey and, while the fee was refunded, they were left in the dark about their home’s energy efficiency.
Of the remaining 11 participants, Which? said just one was “very satisfied” with their EPC.
Meanwhile, eight of the 11 participants said their EPC did not appear to be accurate, with incorrect descriptions of features like windows, roofs and heating systems.
A couple in Aberdeenshire achieved a D rating for energy efficiency for their 1980s four-bedroom semi-detached bungalow, but their EPC report did not mention their solar panels or their wood-burning stove.
Which? said it contacted the assessor, who admitted there were omissions in his notes and offered to supply a new corrected EPC, with an improved B rating for energy efficiency.
What is an EPC rating?
ENERGY Performance Certificates (EPCs) tell you how energy efficient a building is and give it a rating from A (very efficient) to G (inefficient).
They’ll tell you how costly it will be to heat and light your property, and what its carbon dioxide emissions are likely to be.
An EPC also includes information on what the energy efficiency rating could be if you made the recommended improvements and highlights cost effective ways to achieve a better rating.
EPCs are valid for 10 years from the date of issue.
You can find your property’s EPC by visiting www.gov.uk/find-energy-certificate.
Another woman achieved a D rating for energy efficiency for her two-bedroom Victorian terraced house in London.
Her EPC recommended improvements which could have cost her up to £26,700 but would only raise the rating to a C and save her around £920 a year.
Which? is calling for the next government to reform the EPC system to ensure it provides consumers with the information and advice they need.
Rocio Concha, Which? director of policy and advocacy, said: “With millions of families worried about high energy bills, and the UK facing a big challenge to transition to low-carbon heating, Energy Performance Certificates could be a helpful tool for consumers looking to save money and improve their home’s efficiency in the future.
“However, our research shows they are in desperate need of reform – with current certificates often inaccurate and only suggesting costly improvements with long payback periods.”
Hundreds of thousands of households may be able to get free or cheap insulation to help cut their energy bills. We explain all below.
GREAT BRITISH INSULATION SCHEME
You can get help insulating your home through the Government’s Great British Insulation Scheme.
The scheme is open to households in council tax bands A-E across England, Wales and Scotland.
You also must have an energy performance certificate rating of D or lower.
If you qualify, you could be in line for essential upgrades to your home, including roof, loft or cavity wall insulation – which could cut your annual energy bill by £100s.
Check whether you meet the eligibility criteria by visiting www.gov.uk/apply-great-british-insulation-scheme.
ENERGY COMPANY OBLIGATION SCHEME
Through the Energy Company Obligation (ECO) scheme, low-income and vulnerable families can receive help improving the energy efficiency of their homes.
Under the ECO scheme, suppliers have a legal obligation to implement energy-saving measures in your home.
Help is offered on a case-by-case basis, but it can mean having a new boiler fitted, or loft or cavity wall insulation put in, often for free.
The ECO was first launched in January 2013 and has been extended four times.
Not all energy companies are signed up to the ECO scheme. Here is the list of ones that are:
- British Gas
- E (Gas and Electricity) Ltd
- E.ON
- Ecotricity
- EDF
- Octopus Energy
- Outfox the Market
- OVO
- Scottish Power
- Shell Energy
- So Energy (including ESB Energy)
- The Utility Warehouse
- Utilita Energy
You only qualify for the ECO under certain circumstances, such as claiming certain benefits and living in private housing.
You also could be eligible if you live in social housing.
Also, just because you are eligible for the ECO scheme, that doesn’t mean you are guaranteed help.
Meanwhile, you may have to fund part of the energy-improving measures in your home.
You can apply by contacting either your local council or energy supplier.
SOCIAL HOUSING DECARBONISATION FUND
The government recently confirmed fresh funding to help thousands of homes with poor insulation and outdated heating systems are in line for upgrades.
It has boosted the Social Housing Decarbonisation Fund (SHDF) by £75million.
The funding will be offered to 42 councils and housing associations across England to help them co-fund installations in up to 8,000 homes.
Under the scheme, council houses will be retrofitted with wall and loft insulation, double glazing, heat pumps, and solar panels.
They will not be limited to one installation and could get their home insulated, have doors and windows upgraded to reduce heat leakage and cut their energy bills.
If eligible, those living in social housing will not need to do anything, as their housing provider will contact them.
Other households will need to check what their local authority has on offer, and they may need to apply for help.
Local authorities will deliver the funding in different ways.
Therefore, you will need to check directly with your council.
BOILER UPGRADE SCHEME
Meanwhile, through the Boiler Upgrade Scheme, you might be able to get a grant to help with the cost of installing a heat pump.
The grant was first launched in 2022 and was originally worth £5,000 or £6,000, depending on the type of heat pump.
But as heat pumps are typically expensive to purchase and install, costing between £5,000 and £8,000, the government boosted the grant in October to £7,500.
The grant can be used towards both air source heat pumps and ground source heat pumps.
Those wishing to install a biomass boiler can also apply for a £5,000 grant.
You must find an MCS-certified installer to claim the grant on your behalf.
MCS is the certification scheme for energy-efficiency product installers.
You can find the nearest ones to you by visiting www.mcscertified.com/find-an-installer, but it is worth shopping for a few quotes.
Once you agree a price, the installer will apply for the grant and you will then be contacted by Ofgem, the energy regulator, to confirm that the work is being done on your behalf.
You must pay the difference if the pump costs more than the grant.
How do I calculate my energy bill?
BELOW we reveal how you can calculate your own energy bill.
To calculate how much you pay for your energy bill, you must find out your unit rate for gas and electricity and the standing charge for each fuel type.
The unit rate will usually be shown on your bill in p/kWh.The standing charge is a daily charge that is paid 365 days of the year – irrespective of whether or not you use any gas or electricity.
You will then need to note down your own annual energy usage from a previous bill.
Once you have these details, you can work out your gas and electricity costs separately.
Multiply your usage in kWh by the unit rate cost in p/kWh for the corresponding fuel type – this will give you your usage costs.
You’ll then need to multiply each standing charge by 365 and add this figure to the totals for your usage – this will then give you your annual costs.
Divide this figure by 12, and you’ll be able to determine how much you should expect to pay each month from April 1.