Ask our Expert

How can I save money on my energy bills?

Our expert says…

Thank you for your email. Following the recent energy price rises, many people are finding themselves in your situation, faced with increased gas and electricity prices and worried about their winter bills.

There are however simple actions you can take to cut your energy costs. Here are my five top tips for saving money on your energy bills:

1. Pay your bills by direct debit

This is a relatively easy and effective way to save money on your energy bills, as suppliers are keen to offer discounts to customers who pay by Direct Debit.

They claim that this is because direct debit payments are cheaper to process than other payment methods like cash and cheques, but the main advantage for the energy supplier is that their payment is guaranteed.

Ofgem has recently critised energy suppliers for awarding bigger discounts to direct debit customers as those who are unable to pay by direct debit are penalised.

According to the BBC, the average annual bill for households on prepayment meters was £118 higher than those who pay by direct debit following the latest round of price increases. Those who pay by cash or cheque each quarter - standard credit - pay about £80 a year more than those on direct debit.

While these discounts may not be around forever, they are still a good way to save money now.

Paying your bills by direct debit >>>

2. Sign up to paperless billing

Signing up to paperless billing is a great way to cut the cost of your bills, providing you have access to the internet.

Paperless billing means you will not receive paper bills, instead you will manage your account online. As an online only customer, you’ll take your own meter readings and enter them online; you’ll receive an e-bill and be able to access and amend your account, see direct debit payment details and pay your bill, if you’re not a direct debit customer online.

By managing your account yourself it saves suppliers money on admin costs such as postage and paper as well as technicians deployed to read the meter - savings which are passed on to you.

Paperless billing also means you’ll eliminate the risk of over-paying on estimated bills, and it’s good for the environment too!

Managing your energy account online >>>

3. Switch tariff

If you have never switched energy supplier before you are likely to save plenty of cash and even if you have switched recently it is still good practise to compare gas and electricity prices to ensure you are on the cheapest tariff. In fact, you could save up to £276 by using our energy comparison service.

For the best savings, you should ensure you take both your gas and electricity with one supplier, thus benefiting from dual fuel discounts.

If you are concerned about further price increases in the future, you may want to protect yourself by choosing a fixed price energy tariff. Fixed price tariffs will guarantee that the price you pay for energy will not increase for a fixed period of time, normally one to three years.

It’s important to shop around before making a decision and remember that the price you will pay for gas and electricity depends on where you live.

Once you have found the cheapest provider, switching is easy. All you have to do is fill in some personal details.

It usually takes between four and six weeks for your switch to take place and after you sign up you’ll receive a letter from your new supplier notifying you when the switch will happen. Your old supplier will send you your final bill and after that you’ll only receive bills from your new energy supplier.

Switching energy providers >>>

Compare energy tariffs >>>

4. Practise energy efficiency

Changes you make to your home and to your behaviour can have a dramatic effect on your energy consumption and thus on the size of your bills.

Here are some effective energy saving measures to start with:

• Switch to energy saving light bulbs - This is one of the quickest and easiest ways to start saving energy. Priced from around £3, energy saving bulbs typically last 12 times longer than ordinary bulbs, and could potentially save you a staggering £7 per year per bulb. With the average home containing 17 bulbs, you could save up to £120 a year by swapping them over.
• Replace your boiler - Fitting an energy efficient condensing boiler along with a full set of heating controls could save you as much as 45% of your heating fuel bill, around £250 a year.
• Insulate your home - As 15% of heat is lost through the roof, installing loft insulation is a simple and cost-effective way to reduce your heating bills. If you install the recommended 270mm depth of loft insulation, you could save around £155 a year on your heating bills.
• Turn down the temperature - According to the Energy Saving Trust (www.energysavingtrust.org.uk), turning down your thermostat by just one degree centigrade (which you are unlikely to feel) can save you up to 10% on your heating bill.
• Change your appliances - Making sure you choose energy efficient electronics and appliances when buying something new will cut down the amount of energy your household uses and reduce your bills. Replacing an old appliance with an AAA energy rated one could save you up to £45 a year.
• Change your habits - You can become more energy efficient just by making small changes to your behaviour. For example, remembering to turn off your appliances at the plug rather than leaving them on standby. According to Friends of the Earth, your appliances still use around 70% of their usual energy when left on standby, so turning them off will trim down your energy use, and could save you around £25 a year.

Energy efficiency guide >>>

5. See if you are eligible for any grants

If you are struggling with the rising costs of energy and are worried about being able to afford your bills, it’s definitely worth finding out whether you are eligible for any heating grants.

The UK Government funds schemes providing up to £2,700 (or £4,000 if oil central heating is recommended) to vulnerable households in order to improve their heating, insulation and energy efficiency. In England this scheme in known as Warm Front (www.warmfront.co.uk).

You should check the Warm Front website for full details of eligibility criteria, however in general to qualify for a Warm Front grant householders must fit into one of the following categories:

• Be aged 60 years or over and in receipt of an income related benefit (for example Income Support, Council Tax Benefit or Pension Credit)
• Have a child under 16 (or be pregnant with maternity certificate MAT-B1) and be in receipt of a designated income related benefit or tax credit.
• Be in receipt of a designated disability related benefit or Disabled Person’s Tax Credit.

If you are eligible, a grant can provide a package of heating and insulation improvements, including gas, electric or oil central heating (with a combination boiler, up to five radiators and all valves and pipework), as well as energy efficiency advice.

Can I get a heating grant? >>>

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If you have an energy query please email ourexpert@energychoices.co.uk