Lower Your Energy Bills
We explain how to pay less for your electricity and gas.
With the average bill now exceeding £1,000 a year, paying for home energy is expensive.
Yet around half of households in the UK have never switched supplier, leaving some homes paying 30 per cent more for their fuel than they should be.
We have plenty of ways to reduce what you spend on electricity and gas. Review the situtation each year to ensure your bill is still as low as it can be.
Get Better Value
You can reduce overspending straightaway simply by switching to a better value tariff. There are more than 14,000 to chose from. This does not even always mean changing supplier. By switching to the best deal available, the average customer, who has never before switched energy suppliers or tariffs, can make a saving of over £280.
Go Online
With an estimated 40 per cent of people still on standard tariffs, people with internet access should consider an online tariff. These can save hundreds of pounds because energy companies pass on savings from reduced paperwork. Online accounts with paperless billing often offer big discounts and can save time, as well as money.
Double Up For A Discount
Dual fuel tariff deals often offer bigger discounts. These are where one supplier provides both gas and electricity.
Consider Capping
With the wholesale cost of energy almost double what it was last year, and further increases expected, now could be the time to switch to a capped-price tariff. If utilities companies up their prices again - and rises of between 10 and 20 per cent have not been uncommon - that mediocre capped rate from your energy supplier could suddenly be very reasonable. If you need some consistency in your monthly spending, consider capped rates. However, fixed rates mean you won't benefit from any price falls.
Pay By Direct Debit
You can normally save money by paying by monthly Direct Debit, as energy companies pass on savings from reduced paperwork. In the event of an error the bank should refund the money quickly. However, some companies have undercharged people leaving them with a large unpaid bill, or overcharged during the summer and sat on consumers' money. So:
Check Your Meter & Bill Regularly
Legally, energy suppliers only have to read your meter every two years, which means that your energy bills are based on what they think you might use up. Make sure that you check your meter on a regular basis and let your supplier know the reading. Their lines are often open 24 hours a day and they will amend your bill accordingly.
Spread The Cost
Check that you are spreading out payments on your household bills so you don’t have to pay them all at once. Gas, electricity, water and phone companies usually have budget payment schemes.
Use Less Energy
Energy saving tips are not just about being green, they can also reduce your bills. Check your appliances - if you are looking to buy the latest plasma screen, or American-style freezer, take a moment to read the booklet that comes with it. Some household appliances guzzle up electricity so it is worth having a look around your home to see if there are appliances which might be significantly increasing your energy bills.
Just Moved Home?
Don't inherit someone else's supplier. A classic mistake to make when you move into a new residence is to stay with the previous owner's supplier. Make sure that you read the meter as soon as you move in, and investigate the previous occupier's energy supplier. Unless that supplier is offering the best deal, look to change to a better tariff, or even change supplier altogether. If you want to save money, don't be lazy - start to investigate.
Shop Around
Price comparison websites are a great way to compare different suppliers and their tariffs, but ensure that the website you are using is as comprehensive as possible. There are six major suppliers, but some comparison sites do not cover all six, limiting your choice. In order to really save money, you need to search the whole market and all of the available tariffs to find the cheapest supplier.
Tim Whittle, the EnergyWatch Confidence Code Manager, recommends independent price comparison sites.
"They offer a comprehensive service that compares your current supplier, tariff and usage with the tariffs from all the major suppliers, to help find the best deal for you and provide you with a free and easy to use switching service. They also give detailed information on each tariff, including gas and electricity unit prices and any applicable discounts."
"Energy suppliers rarely reward loyalty and move customers to a cheaper tariff as a matter of course," says Siobhan Parker from Switch with Which? "Customers need to be proactive and look for the best deal around - changing supplier could save hundreds of pounds, is completely free and there is no interruption to supply. Even those who have already switched may find that new tariffs could offer further savings."
Switching isn't just for people with online access. Many sites offer a freephone service which is especially helpful for people who don't have internet access or aren't confident using an online service.
Some providers will even offer moneyback offers and various deals to new as well as current customers. With winter taking hold and the credit crunch carrying on, there will be a guaranteed minimum payment of £10.50 for every ACES gas customer for example.
Web Links
Energy price comparison websites:
Gas and electricity watchdog:
Are you or your family being hit by the credit crunch and having to cut back? Do you have any tips on reducing your bills? You can share your experiences or advice in the comment box or 50connect forum.
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