A new analysis report has suggested that a German-style national drive to reduce energy use in the UK could save households up to £400 over 2023.
By turning off lights and lowering heating temperatures, this could save the Treasury £9 billion too, reports the Daily Record. The Social Market Foundation (SMF), a cross-party think-tank, has called on the Government to launch a campaign informing people about practical tips to reduce household energy demand.
In Germany, a national energy-saving campaign has seen lights turned off in some public buildings, heating turned down and households encouraged to minimise energy use.
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Since this campaign was launched in September, the gas consumption of the country has been between 20 per cent and 37 per cent lower than at similar times in previous years.
In the new report, the SMF suggested that replicating these moves in the UK could deliver household savings of between £250 and £400 a year.
Reducing your energy consumption could also help savings for public finances, since the £2,500 Energy Price Guarantee policy currently means that taxpayers subsidise every unit of energy used in the UK.
The Social Market Foundation has estimated that the Treasury could save up to £9.3 billion on this policy if energy demand fell as much as Germany's. The German campaign is based on providing easy option to consumers who are already looking to reduce their consumption.
It also provides strong encouragement from national leaders to save energy. The German government’s package of energy-saving measures includes ‘offering practical tips, suggestions, and examples to make saving energy as easy as possible’.
So far, it has refrained from imposing policies that force households to reduce their consumption, as people have done it of their own accord.
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Despite the strong case for demand reduction measures, the government of Liz Truss refused to launch similar campaigning efforts, because the then-prime minister did not want to be accused of ‘nanny state’ attempts to tell people what to do.
Now, Prime Minister Rishi Sunak has announced he will increase the Energy Price Guarantee to £3,000. It will be in place for a year, and there will also be additional cost of living payments, worth up to £1,350.
The SMF said that ministers should be looking to emulate the German campaign as soon as possible. The think-tank produced estimates of what could be saved in the UK.
The SMF done this by calculating the impact of both 20 per cent and 30 per cent demand reductions on household finances, as observed in Germany.
It found that if consumption were to fall by 20 per cent, the average household would save around £260 across the year. If consumption fell by 30 per cent, it would save just under £400 a year.
Jake Shepherd, Senior Researcher at Social Market Foundation, said: “In the face of rising energy costs, and despite the Energy Price Guarantee, households are and will continue looking for ways to reduce their demand for energy.
"The UK Government should give them more practical information on doing so, instead of leaving them in the dark - or worse, making unacceptable trade-offs between heating and eating."
He added: “Far from ‘nannying’ people, Government guidance would empower them – and most importantly, help them save on their energy bills.
"Reducing energy use would deliver significant savings for the Treasury, potentially reducing the pressure on ministers to find money elsewhere with tax rises and spending cuts.”
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