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Why has my bill increased when I’ve used less energy than last year?

Why has my bill increased when I’ve used less energy than last year?

Chris,

I’ve just received my energy bill for the last quarter and, even though October, November and December were mild in comparison to previous years, I was shocked by how high the bill was, especially for gas.

I certainly didn’t have my central heating on as often and didn’t need to set the thermostat very high so assumed I would be saving money, but my bill for this quarter is higher than the bill I received for the same quarter last year.

Why is my bill higher when I’ve used less energy? I can’t see how switching supplier would reduce my bill significantly, so are there any steps I can take to reduce my energy consumption while still enjoying a modicum of comfort and not turning my home into a fridge?

Steve Perry, Boroughbridge, North Yorkshire, via email on Friday 13 January, 2012

Our expert replies...

Steve - hi there.

Firstly, just to reassure you, no, you’re not going mad: even though you used less energy this winter than last winter, your energy bill increased because all the “big six” energy suppliers ratcheted up their prices over the summer/autumn of 2011 by an average of 17.8% for gas and 11.1% for electricity. However, this was the second round of price increases by all of the “big six” in 2011, so it’s no wonder you’ve seen a considerable increase in your energy bills.

This series of price increases has wiped out any saving you may have made by using less energy over the October/November/December quarter, when the weather was unseasonably mild. However, the long-range forecast is that temperatures will plummet to single figures between January and March, so you’ll almost certainly have to turn your thermostat up, which will unfortunately mean increased consumption and higher bills.

I can appreciate your scepticism about switching supplier as all the “big six” energy companies - British Gas (www.britishgas.co.uk) , Npower, EDF Energy, Scottish Power (www.scottishpower.co.uk) , E.ON and SSE (formerly Scottish & Southern Energy) - seemingly offer a myriad of puzzling tariffs which cynics (and some realists) say are there simply to bamboozle the consumer and not lead them to the most competitive prices for their circumstances.

Energy regulator Ofgem has frequently lambasted the “big six” for confusing consumers by the bewildering array of tariffs they offer. In November 2011, British Gas took a leaf out of the smaller energy companies’ book by offering just two tariffs - fixed and variable - and pledging to offer bills and statements that are easier to understand.

Checking what deals are available to you is quick, painless and free. Simply get your latest energy bill, click on the Energychoices.co.uk comparison page and start comparing the deals on offer.

Having the bill to hand when inputting details of your energy consumption means you get a more accurate quote and, the more accurate the quote, the more informed the decision you can make when you switch supplier. Moreover, use the bill from winter 2010, when your energy consumption was more representative than winter 2011 as you used less then because of the mild weather.

As well as checking out the “big six”, also check out the smaller, niche energy companies, some of whom use renewable sources to generate the electricity they supply and this means a more stable price. For example, Good Energy has not increased its electricity prices since August 2008.

Also, the smaller energy companies offer a very limited range of tariffs depending on whether you want to opt for a fixed or variable rate deal or else how “green” you want your electricity. OVO Energy offers two tariffs: the New Energy Plan where 15% of the electricity is from renewable sources (solar, wind, wave and geothermal) or the Green Energy Plan where 100% of the electricity comes from renewable sources.

As well as switching energy suppliers to a (hopefully) cheaper deal, there are a number of obvious ways to save energy. So obvious are they that the majority of people ignore or denigrate them, but turning electrical appliances off at the mains socket rather than leaving them on standby does save money, especially if you own a lot of appliances.

Draught-proofing doors and windows not only stops cold air getting in, but also warm air getting out. It’s a pain to do the initial work, but draught-proofing tape is available from all the big DIY chains (and smaller specialist shops) and it’s cheap, so the investment you make is more time than money.

Also things such as turning the thermostat down a degree or two, wearing layers of clothing and throwing a thermal blanket on top of your duvet all help save energy (and therefore money). Closing the doors of empty rooms rather than leaving them open is another way of saving heat and installing energy efficient bulbs (compact fluorescents) in the most frequented rooms also cuts costs.

Other things such as only filling the kettle with as much water as you need, not putting hot food in a fridge or freezer (and occasionally running the vacuum cleaner nozzle over the condenser coils on the back of the fridge to remove dust to increase its efficiency) and always waiting until you have a full load for the washing machine/tumble dryer. In addition, don’t be tempted to dry clothes on your radiators - in makes your boiler work harder and consume more energy.

Don’t worry, doing all this doesn’t mean you’ll turn into a lentil-eating tree hugger, but it can cut pounds off your energy bill. That way, you can enjoy your “modicum of comfort” during a North Yorkshire winter without it dramatically hiking up your energy bills.

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Comments

My last bill in Nov was £2.71 to show you that I barely use my gas. My bill for Dec-Jan and part of Feb is £216. I barely have use the heating as I could not afford it, I only put it when we had the snow. Npower asked me to check for gas leaks I already had done that, nothing, meter reading is correct. This bill is as high as the last 2 1/2 years from my entire gas bills. I'm in warm tariff! at the end of Jan, they had reduce their prices. I'm desperate at this point, as I fear to ask them to come and check the meter and that they find nothing and I have to pay their fee, but were else could be the problem? I'm around the house like a polo bear, thermals, lost of socks, track suit , dressing gown to top it up, and as I have being cute poor I have being in the couch under the blankets, which keep me pretty warm. I also have insulation good double glazing windows. No matter were I look for a possible problem, I can't find one! - Feb 24 2012 8:01PM