How do you save money on energy bills when most of the energy providers continue to increase their standard tariff charges? Today, one of the stuff that consumes much of our money is energy which includes gas and electricity.
And according to Ann Robinson, Director of Consumer Policy at uSwitch.com, in the last six years the UK’s average household energy bill has rocketed from £660 to £1,252 a year – a £592 or 90pc increase.
How To Save Money On Energy Bills
But despite increase in standard tariff charges, there are still steps that people can take to cut their heating bills without going cold this winter.
Most households won’t qualify for “business” rates on their gas and electricity. But there are still steps that people can take to cut their heating bills without going cold this winter.
#1). Get a fixed energy rate
These deals are fast selling out, but as this section went to press on Thursday it was still possible to lock into a fixed-rate deal that would ensure no price rises for two winters.
Best of the bunch is First Utility’s fixed-rate deal, which will hold prices until March 31 2014. However, this does come with exit fees (£30 per fuel), so if prices do fall next year you will could be left paying over the odds or paying a penalty.
Alternatively, Scottish Power is offering a fixed-rate deal over the same period with no exit fees. It has a slightly higher unit price – so on the typical home will cost £60 a year more than First Utility. Usually the consumer pays a premium for a fixed-rate deal, but both these deals are competitive when compared with the best variable-rate tariffs.
#2). Switch providers
If you haven’t moved suppliers in the past few years you could save money on your bills. Despite energy companies promising to “simplify” tariffs, there are often significant differences between standard tariffs and best-buy rates.
There are a number of websites – such as Moneysupermarket.com, uSwitch.com and energyhelpline.com – that help you find the best deal.
#3). Find a better way to pay
Even if you don’t want to switch provider – although it should involve minimal hassle these days – you may be able cut costs with your current provider.
Simply switching to an online tariff (where you update meter readings over the internet) and paying by direct debit rather than quarterly bills can cut costs significantly.
#4). Keep an eye on energy usage
Those paying by direct debit should ensure that they are not building up a surplus. Monitor estimated usage and bills, and actual readings.
You have the right to have surpluses repaid immediately. Remember that, if you have been underpaying, your supplier can backdate bills, but only for up to 12 months.
#5). Pay less for working from home
You may not qualify for “business” rates but those who work from home on a regular basis can claim the energy they use as a business expense, which can be offset against your tax bill.
For example, if you used a small room at home as an office, which represents 5pc of the floor area of the house, and your electricity bill for heating and lighting was £300, you could claim £15, or 5pc of the total. Contact HM Revenue & Customs for more information.
#6). Get cashback
If you are looking to switch suppliers, try using a cashback site such as Quidco or TopCashBack, where you may be able to earn up to £45 on top of any savings made by switching supplier. You will need to register with either site before cashback can be paid.
#7). Find free insulation
Loft insulation can save you £120 a year but you may need an upfront payment of £300 to install it. However, many energy companies offer free loft or cavity wall insulation, or grants to help with other energy-saving measures. These are typically (although not exclusively) targeted at those on low incomes or a pension.
Contact your gas or electricity supplier for more information. The Energy Saving Trust said simple measures such as fitting curtains across doors, blocking draughts and insulating windows could make an impact on heating bills.
