Households with a boiler urged to make 60-second change before July | Personal Finance | Finance

Households with a boiler in their home are being urged to make a simple 60-second change before July when Ofgem’s new energy price cap kicks in.

The regulator has confirmed that the price cap will rise by 13% from July 1, adding an extra £18 per month to the average bill for households using both electricity and gas. The increase is being driven by higher wholesale gas prices as a result of the ongoing conflict in the Middle East and will mean the typical household on a standard tariff is facing annual energy costs of £1,862, up from £221 on current levels, from July. And unfortunately, early predictions suggest that prices will continue rising, with analysts Cornwall Insight forecasting the October to December cap will reach £1,899 per year – a 2% rise on July’s cap.

From July 1, gas costs per kWh will rise from 5.74p to 7.33p – a 28% rise and the highest level since September 2023, while electricity rates will increase by just under 6%. The price cap is updated every three months meaning the increase from July 1 will be in effect until September 30.

To help ease the financial burden ahead of the July price increase, energy experts recommend making a quick adjustment to the flow temperature of your boiler, as it can result in big savings without making much of a noticeable difference to the temperature of your heating and hot water.

Most boilers are set too high by default to a temperature of around 70C to 80C, and while this setting ensures fast heating, it wastes energy as excess heat escapes through the boiler flue.

But if you turn the flow temperature down and set it between 55C and 60C instead, you can cut your energy bills by 12% and save up to £87 per year as a result.

At this slightly lower temperature, boilers can operate in “condensing mode” which is more efficient as it recovers heat that would otherwise be lost. This adjustment also doesn’t reduce the thermostat’s set temperature, although it means your radiators may take slightly longer to warm up.

In its online advice on reducing energy bills, Octopus Energy said: “Your boiler’s flow setting controls the temperature water is when it leaves your boiler. Its default setting is usually too high. Turn it down a bit and your home will feel just as warm, but you could cut your energy bills by 12% and save up to £87 according to Nesta.

“If you have a combi boiler, we recommend setting your flow temperature to 50c for heating and 55C for hot water to save energy.

“If you have a boiler and a hot water cylinder, we recommend setting the flow temperature on your boiler to a few degrees over 60c for heating and hot water, and setting your hot water cylinder to 60C (you’ll usually find the control for your cylinder ⅓ of the way up the tank).”

Adjusting the flow temperature of your boiler is a simple process that should only take you around one minute to do.

Stephen Day, Gas Safe Engineer at iHeat, explained: “To adjust your flow temperature, locate the Flow Temperature Control – find the dial or digital setting on your boiler panel, often marked with a radiator symbol.

“Adjust the Temperature. If the control has numbers set it to 60C, if no numbers are shown use the midpoint as a general guide.

“Monitor Your Heating. Check your home’s warmth and adjust slightly if needed. If your boiler is connected to a hot water tank, consult a professional before making this change to avoid unintended issues.”

Now is the ideal time to make small cost-saving measures around your home ahead of the 13% hike to the energy price cap – and a potential further 2% from October.

The price cap sets the maximum rate per unit and standing charge that customers can be charged by suppliers for their energy use – but not the total bill, so those who use more energy ultimately pay more.

While the price cap won’t affect households on fixed tariffs, it still pays to cut costs where you can and adjusting your boiler temperature is a very quick and simple way to save money.