German-style energy reduction drive could save £9bn

The cross-party organisation the Social Market Foundation (SMF) is calling on the government to follow Germany’s lead and launch an information campaign that provides practical tips on reducing 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. Since its launch in September, the country’s gas consumption has been between 20% and 37% lower than at similar times in earlier years. 

If this was replicated, Britain could deliver household savings of between £250-£400 a year, according to the SMF. This would also deliver a significant saving for the public finances, since the Energy Price Guarantee policy currently means taxpayers subsidise every unit of energy used in the UK. 

Overall, the think tank estimates this could save the treasury up to £9.3bn on the price guarantee policy if British energy demand fell as much as Germany’s did.  

The German energy-saving campaign is based on providing easy options to consumers already looking to reduce the demand of their own accord, and strong encouragement from national leaders to save energy. 

Its package of energy-saving measures includes “offering practical tips, suggestions, and examples to make saving energy as easy as possible”, and it has, up until this point, refrained from imposing policies that force households to further reduce consumption. 

The SMF’s senior researcher Jake Shepherd 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 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. 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.”