Cut your energy bills in 2011
Thursday, 20 January 2011 05:22
By Kate Saines
It’s late winter, arguably the time of year when our wallets go through their biggest bashing. Not only are we paying back that Christmas debt on our credit cards, but it’s time to cough up for all the fuel we used to heat our homes during the cold spell.
And this year, it gets worse. According to research by uSwitch.com, the average annual energy bill has soared to £1,250 from £912 in 2008 thanks to five of the ‘big six’ energy suppliers hiking prices by an average of 5.4 per cent this winter.
It means we are, as a bill-paying nation, collectively paying an extra £560 million on household energy bills.
That’s the bad news. The good news is that there are ways to lessen the impact of the harsh winter and price hikes. Here are some methods which will help you cut future gas and electricity bills.
Switch tariffs
You are not tied to one supplier, there are a whole range of gas and electricity companies out there and they all have a range of tariffs.
You could make huge savings simply by moving to a better deal.
Ann Robinson, director of consumer policy, at uSwitch, said: “The difference between the cheapest and most expensive plan in the market is £370 – I would urge anyone who hasn’t yet ditched their old fashioned and expensive tariff to do so and move to a competitive online plan instead.
“It’s the equivalent,” she added, “of saving almost a third off your bill.”
It’s very easy to switch. Once you have chosen a new supplier they will deal with your old energy company and notify the relevant people of the change. You will not be left without gas or electricity.
Finding a new tariff might be a little more difficult, simply because there is an overwhelming array of different schemes in the market place to sift through.
Consumer champion, Consumer Focus, suggests people call their energy supplier to ask directly if they are on the right tariff. They should also find out if they are entitled to grants or benefits, information which the Citizen’s Advice Bureau can provide.
Price comparison websites will give you a good idea of a range of deals on the market, and will help you compare to your current tariff. But remember, one individual site will not provide a complete picture of all the tariffs available, just a selection – so look at a few websites.
Read more: EDF Energy named cheapest dual fuel supplier
Before switching, arm yourself with information on your energy bills for the past year – to cover all seasons – to make sure you know exactly what tariff you are currently on and what it costs you.
Consider opting for ‘dual fuel’, which means one supplier provides both your gas and electricity. And see if you can find a tariff in which payments are made online, monthly and by direct debit.
Hannah Mummery, energy expert for the organisation, said: “Energy suppliers want people to go online and pay by direct debit, as it makes managing accounts easier for them.
“Online tariffs are generally cheaper as consumers will benefit from the savings made where the supplier does not have to send out paper bills etc.”
She advises supplying regular correct meter readings to ensure the direct debit reflects actual energy usage.
Read more: Online billing reduces energy bills
Insulate your home
Did you know 26 per cent of the heat in your home is lost though the roof, 33 per cent through the walls and 18 per cent through the windows?
Meanwhile 11 per cent escapes through floors and doors while another 12 per cent of the loss is down to draughts and other ventilation.
These statistics all provide a pretty convincing argument for insulation. Cavity wall insulation, according to the Energy Saving Trust, is the most cost effective measure you can take to prevent heat escaping from your home.
The organisation reckons getting it installed can save you around £110 on your heating bill per year.
Thanks to government targets to reduce C02 emissions, you’ll be eligible for a subsidy on the cost of the procedure if your home needs insulating. So it’s definitely worth checking it out.
Other methods to reduce heat loss, according to the Energy Saving Trust, include buying draft excluders for doors, windows and letter boxes, installing double glazing and closing curtains at dusk.
Using less energy
Using less energy will obviously reduce your fuel bills, but this doesn’t necessarily mean turning everything off and going without essential heat.
Getting a more efficient boiler, for example, can help you make savings. The Energy Saving Trust recommends if you have a boiler which is 15 years or older it should be replaced. A new A-rated boiler could cut your bills by a quarter, it said. Insulating your hot water cylinder will also cut waste.
Of course this all costs money. If you don’t have any spare cash, there are other small steps you can take to help reduce your bill.
Wash your clothes at 30?C, this uses about 40 per cent less electricity and can save around £10 a year, according to the Trust.
Switching your heating thermostat down one degree can also cut ten per cent off your heating bill – a saving of £50 a year for a gas-heated three-bed semi.
Overfilling your kettle before boiling and leaving the TV on standby are also classic energy wasting mistakes we all make. As is leaving lights on in rooms we aren’t using.
According to National Energy Action (NEA), the only sustainable way to cut energy bills is through using energy more efficiently.
A spokesperson for the organisation said: “British Gas estimates that customers following advice on energy efficiency are using 18 per cent less gas now that they were in 2006, a trend that is expected to continue.”
Get help
Finally, if all else fails and you still find you are struggling to keep your head above water when it comes to your energy bill, there is plenty of help out there.
Citizen’s Advice is running the Energy Best Deal campaign offering energy-related advice. More than 44,000 people benefited last year from the scheme, which offers help claiming the right benefits, provides information on getting the best tariff and supplies advice on making homes more energy efficient.
You may not be able to stop that bill landing on your doormat, but you can reduce its impact, so it’s certainly worth exploring every avenue.
Use the Myfinances.co.uk comparison site to find the best deal on utility bills.
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