According to a thinktank, government guidance would empower consumers and help them reduce their spending.
According to a study, a public education campaign encouraging consumers to reduce their gas consumption this winter could save households close to £400 and the Treasury £9 billion.
Households could save between £250 and £400 annually, according to a study by the Social Market Foundation, a nonpartisan think tank, if a UK campaign modeled after Germany’s nationwide energy-awareness drive was launched.
Given the high cost of energy and worries about blackouts, the government has come under fire for failing to advise consumers to reduce their gas and electricity consumption this winter. Germany’s government has taken action to reduce energy consumption out of concern that the Kremlin may decide to completely cut off gas supplies this winter. Germany was much more dependent on Russian gas than Britain before the invasion of Ukraine.
In Germany, some public buildings have been left without lights, and in September, a campaign to persuade homeowners to turn down their heating was launched by the government. Since then, the nation’s gas consumption has decreased by 20% to 37% from prior years.
Due to the European crisis, Britain is subject to high gas prices and increased competition, which has prompted calls for a national initiative to cut consumption.
Last month, The Guardian reported that Liz Truss’ administration was prepared to launch a formal campaign but ultimately decided against it. It later emerged that Jacob Rees-Mogg, then business secretary, signed off a “light touch” £15m campaign to save consumers £300 a year on energy bills but the move was blocked by Truss, who opposed a “nanny state” intervention.
Help for Households, a government information website, was later updated with details on lowering boiler flows and draught-proofing windows, but there hasn’t been a comprehensive campaign. Campaign supporters claim that it would enable consumers to save money and ease the burden on the electricity grid.
According to National Grid, the worst-case scenario for the United Kingdom would be three-hour rolling power outages. In the event of a nationwide blackout, the government has also reevaluated its Programme Yarrow plans.
Since every unit of energy used in the UK is now subsidized by taxpayers thanks to Truss’s energy price guarantee policy, reducing energy use would also result in significant financial savings for the government. A 20% reduction in gas consumption would save customers $261 and the government $6.2 billion, according to an analysis of UK government data by the Social Market Foundation, while a 30% reduction would save customers $392 or $9.3 billion.
The German campaign only provides advice rather than imposing restrictions on household consumption.
Jake Shepherd, a senior researcher at the Social Market Foundation, said: “Government assistance would empower people rather than “nanny” them and, most importantly, help them reduce their energy costs. The Treasury would save a lot of money if energy use was reduced, which might ease the pressure on ministers to raise taxes and cut spending in order to raise additional funds.”
Reference: https://www.theguardian.com/environment/2022/nov/06/uk-campaign-energy-save-treasury-9bn-guidance-bills