Energy price cap falls – what does it mean for heating oil households?

Ofgem just announced a 7% drop in the price cap for electricity and gas from £1,758 per year to £1,641 per year, saving an average home £117 from April 1st. This will be a welcome drop for everyone on the main gas grid, although still around 30% higher than before the war in Ukraine.

But how does that compare with heating oil? It’s difficult to compare heating costs for off-grid vs on-grid homes, as the kerosene price is always moving and households buy it when they need it, not on contract.

Here’s as close a comparison as you’ll find and, what’s even better, we’ve got a first-of-its-kind opportunity for you to save even more on your off-grid energy. Be ready to write down the details in just a moment.

Are heating oil homes getting a good deal now?

The high cost-of-living, in particular high food and energy costs, have been the status quo now for years. Ofgem's announcement was expected and we can roughly break down the £117 annual saving for a “typical household” from April 1st into its gas and electricity components.

• Electricity costs down ~£73 a year
• Gas costs down ~£44 a year

Off-grid homes should benefit from the electricity too, but what about gas vs heating oil?

Assuming the “typical household” off-grid uses 1,500 litres of heating oil annually (estimates vary from 1,200 to 1,800) and we use today’s average heating oil cost of 64ppl (incl. VAT), we get as close a comparison as possible between the heating costs of gas from April 1st and an oil order today.

You might be surprised to see that for the same heat production, the cost of heating oil is cheaper than gas. That’s mainly because heating oil has no “standing charge”. The only reason the typical household heating cost is higher for off-grid compared to mains, is the average oil home is more rural, older, larger and so requires more heating per year.

The obvious caveat is these prices will change. In 3 months’, a new price cap will be announced, and heating oil prices will change constantly, so stay up to date with our price alert emails. However, right now, this gives you a clear comparison.

We’ve created a permanent price cut for heating oil

What if we could discount 4 pence per litre off all your oil orders, forever. Sounds too good to be true right?

It’s here. The UK’s first home essentials package designed solely for off-grid homes to simplify your life with fewer bills.

Our mission has and always will be helping off-grid customers save on their essentials.

How does it work? And how do I join?

We’ve teamed up with the award-winning Utility Warehouse to get the best off-grid utility package in the UK. A first-of-its-kind. And exclusively, not only can you save on electricity, broadband and mobile, but you’ll also get up to 4 pence per litre off your heating oil. 1 pence for each utility service that you include in your bundle.

For a household using roughly 1,800 litres per year that’s around £70 a year saving on heating oil alone!

Heating oil savings are just the tip of the iceberg, you could also save £100s with combining your essential utilities as well.