Britons took action to curtail their energy use this winter by buying blankets, warm clothing and energy-efficient appliances in response to soaring gas and electricity prices.
Consumers also cut back on big-ticket items such as computers, televisions and furniture in September, according to the latest sales survey from the British Retail Consortium (BRC).
The overall value of sales rose 2.2 percent from a year earlier, but that was due to a sharp increase in the price of goods, the BRC said in a report on Tuesday.
The volume of sales continued to fall as households already struggling with near double-digit inflation braced for a 27 percent increase the energy-price cap on Oct 1.
Helen Dickinson, chief executive of the BRC, said rising costs and wages are making it hard for retailers to reduce prices for embattled households.
“A difficult winter looms for both retailers and consumers,” Ms Dickinson warned. “Costs are increasing throughout retailers’ supply chain, the pound remains weak, interest rates are rising, and a tight labor market is pushing up the cost of hiring.”
Britons are also turning down the heating. Keeping the thermostat a few degrees cooler than usual could reduce residential gas consumption by as much as 23 percent, according to data.
That would be enough to stave off forced rationing and carry households comfortably through the coldest of the last 30 winters, giving suppliers a bit of a cushion while seeking replacements for dwindling Russian flows.
Regulator Ofgem warned that the country faces a significant risk of gas shortages in coming months, and Britain’s grid operator said there could be three-hour power cuts on cold, calm days.
About three-quarters of households are expected to make behavioral changes such as reducing the amount of time the heating is on and not using it in every room, according to modeling by financial consultant Lane Clark and Peacock (LCP).
Those changes could reduce energy consumption in an average household by as much as 20 percent, said Steven Ashurst, head of heat at an LCP unit.
“We are all hoping for a mild-autumn and winter heating season,” he said. “People will try to manage without their heating for as long as possible.”
The government so far has prioritized reducing costs for consumers over pushing conservation.
The European Union raised concerns about Britain and Germany providing billions of dollars of support for energy bills without addressing demand.
Europe has a voluntary target to cut gas consumption by 15 percent this winter, and France unveiled dozens of measures, pledges and incentives to cut energy use by 10 percent over two years.
By comparison, Britain made no estimates, and Prime Minister Liz Truss blocked an energy-saving campaign.
The most effective way to minimize power consumption during colder months is by improving insulation, said Raman Bhatia, chief executive officer of Ovo Energy, noting that the average British home loses heat three times faster than those in Germany or Sweden.
He also recommended using smart-home technology to boost efficiency. Ovo, the nation’s third-biggest household supplier, is training customer-service agents to offer more advice and audit homes.