Households with electric vehicles (EV) and heat pumps are now saving £1,180 compared to those with petrol cars and gas heating.
With inflation at its highest rate in 40 years, it is becoming increasingly cheaper to run an ‘Electric household,’ according to new research from the Energy and Climate Intelligence Unit (ECIU).
Inflation hit 9.1% in May, over a third of which (3.2%) is being driven by energy prices due to the oil and gas crisis. According to the ECIU, for houses that use electricity to power heat pumps and EVs, the inflation contribution from energy is 2.3%, almost a third lower than the rate of 3.3% seen by households that use fossil fuels.
“There is no category in which inflation is hitting homes and businesses harder than in the cost of energy,” said Bim Afolami MP, chair of the Parliamentary Renewable and Sustainable Energy Group, in response to ECIU’s analysis.
“The UK’s wind power generation had already begun to replace our dependence on gas, the high price of which has had a huge impact on energy bills for homes and businesses. The route to cost effective and efficient energy from domestic renewable sources is through expanding home insulation and heat pump installation.”
In the year to May, gas price inflation has been almost double that of electricity, meaning heating a house using a heat pump is now more than £220 cheaper per year.
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