It has been announced that energy bills in the UK are set to rise by 5% from January as cap hits £1,930 a year for a typical gas and electricity bill.
Commenting on this, David Hall, VP Power Systems, Schneider Electric, UK&I, said:
“Households face a tougher winter owing to a volatile energy market and jump in gas prices – with the price cap expected to rise by 5% from January. The situation was more optimistic in the autumn when wholesale energy prices began to level out due to careful planning, lower demand and a build-up of storage reserves. However, storage can only do so much and there was always a risk that prices would be disrupted if the temperatures in Europe were to drop, significantly increasing demand and draining reserves.
“Unfortunately, the energy market will aways be subject to external factors, such as a cold winter or a sharp rise in demand for oil and gas from other markets, pushing up prices and forcing the UK to bid higher for imports. Once again, this highlights the need for a more secure and sustainable domestic energy system that will reduce the UK’s reliance on imported energy supplies, especially during the winter months when we place greater demands on the national grid.
“The solution lies in a smarter, decentralised grid based on a network of self-contained microgrids that generate electricity using a mixture of renewable energy sources. The foundation of this infrastructure already exists. There are installations up and down the country based on smart power distribution systems managed by digital tools configured to manage existing capacity, without placing additional strain on the grid. The data and insights they provide facilitate a transition to off-grid solutions powered by wind, solar and other clean energy sources like green hydrogen. Replicating this model on a national scale would add resilience and help to future proof the UK’s energy sector for years to come.”