Energy Guides

Student energy guide

Updated: Tuesday 8 May, 2012

Trekking off to university can, for many students, be their first experience of moving away from the family home and living self-sufficiently. So how do you pay those pesky energy bills? Our 10-point plan shows you how.

Up to this point in your life, it’s likely Mum and Dad have been responsible for not only cooking and cleaning, but also paying household bills. All of a sudden, it’s down to you to manage all these things, which can be a steep learning curve.

That’s why we have formulated a ten point plan to help students get the best energy deals available, and not waste valuable money that could potentially be spent on other, more essential items (we’re talking about text books, of course).

1. What’s included?

Before moving into your new accommodation, be sure to ascertain exactly what your rent covers. Are water rates, council tax and utilities included or to be paid on top? Don’t forget, as a student, you’re exempt from paying council tax. If gas and electricity are not included as part of your rent, you need to find out who the suppliers are and register yourself immediately.

The first thing to do when you move in is to take a note of the meter reading, as the amount you pay will depend on how much gas/electricity/water you use. It’s vital that these first readings are accurate, otherwise you could be charged for something you haven't used.

Also, if it’s your name on the bill rather than the landlord’s, contact the energy supplier to let them know who you are and the date you moved in, along with the correct meter readings. This will make sure you only pay for the utilities from the date you moved in, and aren't responsible for anything used by previous tenants.

2. Can I save?

Once you’ve established who your suppliers are and registered yourself, it’s time to run a price comparison to see if you can save by switching.

There’s a widespread belief that renting tenants must not switch supplier without their landlord's express permission and this myth prevents many students many from moving their energy bills to a cheaper supplier.

But what tenants often do not realise is that landlords should not hold them back from taking this reasonable step and the Office of Fair Trading (OFT) explicitly states that tenants paying their energy bills have the right to choose supplier. However, you are required to keep the landlord informed of any change and return the account to the original supplier at the end of the tenancy if your landlord insists.

Compare gas and electricity prices for your home and see how much you could save.

3. Meter readings

Remember to take a meter reading on the day you move in, and give this reading to the supplier when you call to register as a new tenant. The last thing you need is to be paying the previous occupants’ bills. Keep a record of this initial meter reading to compare against the first bill when it arrives.

4. Direct debit

Opting to pay by direct debit will benefit you in two ways: you will save money and avoid late payment charges. Choose this payment method if you can, the benefits are considerable and the financial discipline of paying your bills will hopefully stand you in good stead for later life.

Also investigate a “paperless” account, running the account online and having your bill emailed rather than posted. Energy companies often encourage this by offering up to 10% off your bill.

5. Dual fuel

In order to make further savings, choose a dual fuel tariff. A dual fuel tariff essentially requires you to take both your gas and electricity supply from the same company. Those on a dual fuel tariff, who manage their account online and pay by direct debit, will make the most savings.

Online account management >>

6. Shared households

If you’re sharing the house with a few friends or housemates, make sure the account is registered in everyone’s names. Therefore, if payments are missed then everyone is culpable, not just the person whose name is on the bill.

However, although the responsibility (and liability) is shared, it doesn’t mean you can just pay your share and everything will be alright. The bill has to be paid in full by the due date, which means all those named on it have to pay up. If one person pays the bill, then it’s beholden on the others to stump up to cover their contribution.

7. Anticipation

There’s no getting away from it, those energy bills will always arrive each quarter whether you like it or not. Regardless of how much you’d like to see it happen, the energy suppliers never forget to send them out. In preparation for this, why not try to put £30-£40 aside each term to help you out come billing time?

8. Prepayment meters

Households fitted with prepayment meters pay the most for their energy, and this is a fact. If you move into a property with a prepayment meter, approach your landlord with a view to having the meter replaced by a standard meter. By receiving quarterly bills instead of paying the astronomical pre-pay tariff you will save yourself a significant amount of money.

You could also ask the landlord to change the meter and then include the energy costs in the rent. Landlords in university towns have learned from experience that students are rarely the most prompt of payers and some lump the utilities bills (energy and water) in with the monthly rent. That way the landlord covers his/her bill and the cost is split evenly between the students.

9. Getting out of trouble

Should you fall behind with your energy payments, don’t bury your head in the sand. By ignoring reminders and final demands you’ll only be setting yourself up for extra costs. Before it gets to the stage of the energy supplier threatening you with court action, call the supplier and explain your circumstances.

The energy supplier should be able to set you up with a social tariff (more commonly known as a payment plan) to help you pay off the debt in instalments. But remember that if the utility bills are not paid at the end of the tenancy, the landlord can pay them out of the deposit.

10. Thermostat

If the heating system in your home is run by an immersion heater, then the way in which you set the thermostat can dramatically affect your bills. Program the thermostat to turn the heating on only at times when everyone is in the house. It may be sensible to run the heating for an hour in the morning while everyone is waking up, then a couple of hours in the evening when people are getting in.

For every degree the thermostat is set below 20 centigrade, you could save more money. During the warmer months, try to shut the heating off altogether, or only use it during especially chilly evenings.

And finally...

If you’re among the majority of students who are borrowing money to finance their way through university, then think twice about racking up big bills. This is because borrowing on student loans means you could be paying interest on that bill for up to 30 years. Therefore, keeping bills as small as possible means paying less interest on your student loans - this is effectively a double saving.

If you’re cold, wear an extra layer or invest in several pairs of thermals, if your feet get wet, change your socks and a hot water bottle is a cheaper way to keep you warm than a fan heater. Wearing a hat indoors might not be the coolest look, but you’ll be surprised how much warmer it makes you.

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