Households using outdated electric heating systems face a significant financial burden, with the most inefficient homes seeing gaps as high as £1,823.
As energy prices rise, electrically heated homes could soon be paying nearly £2,500 annually, compared to the £1,717 cap for a typical dual-fuel household set by Ofgem.
Heat pumps offer a solution to rising costs
National Energy Action (NEA) and Kensa, a UK ground source heat pump provider, are urging action to replace inefficient electric heating with heat pumps.
Switching to heat pumps could save electrically heated households over 67% on annual heating costs, significantly alleviating the financial strain.
More efficient heating solutions are seen as crucial in addressing the widening fuel-poverty gap, which increases as energy efficiency decreases.
Electrically heated homes with Energy Performance Certificate (EPC) ratings of F or G are hit the hardest, facing the highest energy bills and fuel poverty gaps.
Government support for better heating systems
The Government’s Warm Homes: Social Housing Fund is highlighted as a key tool for improving energy efficiency in social housing, which still sees around 250,000 homes relying on outdated electric heating.
Kensa, which has already helped upgrade electric heating in nearly 4,000 homes, is encouraging social housing providers to adopt networked heat pumps, which offer energy efficiency rates up to 400%.
This can protect vulnerable residents from future price hikes and help meet the EPC C rating requirement by 2030.
Maya Fitchett, policy analyst at National Energy Action, said: “This winter, the increase in the price cap will mean an estimated six million households are living in fuel poverty across the UK, unable to heat and power their homes.
“We have known for too long that a disproportionate number of these fuel-poor households rely on inefficient electric heating, making them particularly vulnerable to price increases.”
Stuart Gadsden, commercial director at Kensa, added: “Networked heat pumps can provide a much-needed lifeline for these people, shielding households from unstable energy prices and cutting heating bills by over £1,200 a year.
“Social housing landlords have a clear pathway to fund these vital projects through the Warm Homes: Social Housing Fund, potentially lifting tenants out of fuel poverty altogether.”
IMAGE: Kensa