Only 15% of British local authorities have at least 50% of their homes rated as moderate or excellent for energy efficiency.

Energy bills have fueled the cost-of-living crisis among British households for over a year. Even though the winter is ending and it is unlikely that government assistance programmes will be extended again in the summer, reducing gas and electricity consumption remains a top priority. 

A home’s energy efficiency is a crucial factor, and the most recent data reveals how much more some regions must spend to stay comfortable. 

The Government’s £2,500 Energy Price Guarantee (EPG) was extended for an additional three months as part of Chancellor Jeremy Hunt’s Spring Budget, unveiled last month.

Limiting the amount suppliers can charge per unit of gas and electricity to 10.3 pence per kilowatt hour (p/kWh) and 33.2 pence per kilowatt hour (p/kWh), respectively, this is the maximum amount a typical household can anticipate pay in a given year.

Depending on consumption habits and heating methods, expenses could be significantly lower or higher than £2,500.00. 

However, the home’s energy efficiency may be the most influential factor, with data indicating wide variation in ratings nationwide.

Energy Performance Certificates (EPC) for residences are determined based on the materials used, the heating system in place, the quality of insulation, and other energy characteristics. Typically, the resulting score ranges from 0 to 100, indicating which band from A to G a residence falls into.

The median energy efficiency rating for England’s housing stock is 67, and for Wales, it is 65, both of which correspond to a D-band property. Only 15% of local authority districts had more than 50% of dwellings with energy efficiency ratings of band C or higher; two-thirds of these areas were in London or the South East.

The borough of Tower Hamlets had the greatest median EPC, at 74.81, followed by the City of London (74), Southwark (71.3), and Cambridge. (71.1).

On the opposite end of the continuum, the Isles of Scilly had the lowest ratings, with a median of 47, placing them in the E-band of ratings. This was followed by Gwynedd (56.7), Ceredigion (57.6) and Eden (58.9). Five of the ten local governments with the least energy efficiency were in Wales.

In all local authorities in England and Wales, new dwellings’ median energy efficiency was higher than existing dwellings, with the largest difference recorded in Gwynedd and Ceredigion. This disparity reflects the poor standards to which homes were built in the past, which ultimately dragged down the area’s median scores today.

Government initiatives exist to resolve these disparities. Approximately 3.7 million energy efficiency enhancement measures, such as cavity wall or loft insulation, were installed between 2013 and 2022, primarily through the Energy Company Obligation. (ECO).

The ECO requires suppliers to assist low-income and vulnerable households with home heating.

Numerous recipients are considered to be in fuel poverty, a condition in which a household cannot afford to maintain its home at a comfortable temperature.

The number of ECO measures implemented in 2022 was 59% lower than in 2021. According to National Energy Action, the number of UK households experiencing fuel poverty increased from 6.7 million to a peak of 7.5 million on April 1.

This is primarily because approximately four million people in the UK have prepayment metres in their homes, for which they are required to pay a daily standing charge – a fee just for being connected to the gas and electricity networks.

This now corresponds to an average of £350 per year for dual-fuel households, a cost that disproportionately affects low-income households that consume less energy.