We all love a warm, cosy house. But will it soon become pricier to heat your home? Muir Homes explores whether gas bills are set to rise this year. Read more.

Gas Prices Are Rising – Here’s Why You Need To Take Charge Now

Moving into a new, cosy home is always a pivotal moment in our lives. It comes with a wide set of projects, hopes, and ambitions. Whether you are looking for homes for sale in Lanarkshire or somewhere else across Scotland, Muir Homes has you covered.

While settling into your perfect, new abode, there are a lot of things to think about. From decorating your living spaces to adding your personal touch to the property, these first steps are usually a very exciting process. Some other tasks, however, are not necessarily as enticing. Arranging your utility bills, for instance, is one of the most obvious and tedious duties.

This said, it may be wise to consider taking charge of gas and electricity contracts in a timely manner. Gas prices, in particular, are rising, and it is, therefore, important to address the matter sooner rather than later. Hopefully, this will allow you to save money that could be spent, instead, on adorning your house and making the most of activities you truly enjoy.

Why are gas prices so high?

There are a number of reasons for which gas prices are elevated. First of all, it is fair to say that it is not only a domestic issue. Most places that rely on other countries for their gas supplies are facing some serious struggles.

Russia, in recent times, has been producing less gas than usual, and numerous North Sea platforms are still on halt due to maintenance work and repairs. In this respect, the events of the last couple of years have only created slowdown and delay in operations.

What’s more, winters 2020 and 2021 in Europe have registered some very cold temperatures. This has put more pressure on supplies and, ultimately, decreased the amount of gas stored. Not to mention that a near windless summer in 2021 has made it challenging to produce sufficient wind energy.

In short, all these various obstacles have been pushing up our gas bills. As around 85% of British homes have gas central heating, and with gas generating one-third of the country’s electricity, it is no surprise that the UK is being significantly affected.

Are gas prices rising?

As things stand, gas bills are already rather pricey. But are they rising even further nowadays? The simple answer to this question, unfortunately, is yes. The reality is that our pockets are currently facing higher costs.

Put simply, households are seeing a spike in their energy bills, which can now swing from an extra £139 to £1,277 per year on top of people’s past fees.

Why are gas prices rising?

So, the heart of the matter is that our energy bills are rising. But why are the gas prices going up? As mentioned, there are several reasons for which this is happening, and we detailed some of the issues above.

The fact that countries are starting to lift COVID-19 restrictions with the aim to gradually relaunch their economy is playing a part in this too. After the shock of the pandemic, demand for gas has skyrocketed – and suppliers are finding it difficult to keep up.

Long cold winters both in Europe and Asia also mean that there is increased demand and competition for gas all over the world. Prices, as a result, are surging as well.

In fact, a higher energy cap was introduced and came into effect on 1st October. Therefore, households – as well as businesses – have seen in recent weeks an increment of 30% in gas prices.

Are gas and electricity prices likely to rise in 2022?

All things considered, experts predict that prices will continue to rise throughout 2022, and will keep growing in the next few years too.

In this respect, from April, average electricity and gas bills are set to increase by £693. Ultimately, with a record growth of global gas prices, the energy price cap has ended up rising by 54%.

There is no hiding that energy bills will not be kind to our finances this year. But, with a general idea of the reasons behind the increase in price, and with future cost previsions in mind, you will know what to expect. All you can do, in the meantime, is to relax and enjoy your cosy house.