Households face another hike in energy bills this month as the energy price cap was lifted once again.
The cap, which limits the extent to which suppliers can increase gas and electricity bills, rose by 1.2% from the first of this month. This means the energy bill for a typical household using electricity and gas and paying by Direct Debit will go up by 1.2% to £1,738 per year.
The cap is expected to rise again in April 2025 by around 3%, before possibly being reduced in the second half of the year. With UK household energy debt estimated at more than £3 billion, higher bills could cause significant financial stress. But there are several ways to reduce your energy bills, even if you’ve taken some steps already. Here are our five tips.
Reduce your energy usage at home
There’s a range of seemingly very modest steps you can take that can really help over the long run. Simple energy saving measures include:
- Switching off appliances (such as TVs and chargers) at the plug if they’re not in use.
- Turning down the thermostat (even if it’s just by just one degree it still lowers your heating costs).
- Washing clothes at 30 degrees instead of 40.
- Swapping any remaining traditional light bulbs for energy saver options.
- Draught proofing windows and doors.
The Energy Saving Trust offers a full list of measures (and how much they could save you).
Shop around for a new deal
If you’ve been with the same supplier for a while it’s worth looking at what else is on the market, as there may be cheaper options available. There may even be a better and more suitable tariff for you with your existing supplier. Price comparison sites that help with shopping around include Comparethemarket and uSwitch.
The market isn’t especially competitive right now, so cheaper tariffs can be hard to find. Even so, you might be able to cut costs with your existing supplier by switching from paperless to online billing; paying by direct debit; and making sure you send accurate meter readings at least once a month (a Smart Meter will do this for you, if you have one). Also, if you have more than two or three months’ of credit in your account you can ask your supplier to use it to reduce your direct debits for a period.
Upgrade your appliances
If you need to buy new electric appliances for the home it’s a chance to make sure you get the most energy efficient. Use the energy label to identify the rating the product has been given. Look out for those with A+++ ratings, as these use the least power and will therefore help lower your energy costs.
This can make a big difference when it comes to large items such as washing machines and dishwashers, which can account for around 10% of household energy costs.
Use a smart meter
There’s a good chance your supplier has already offered you a smart meter. But if it hasn’t, it’s worth asking. Smart meters have a real-time display that makes it easier to monitor your energy usage and how much it costs you, enabling you to manage how much you’re using and when. They also send electricity and gas readings directly to your supplier, so you don’t have to take your own readings or rely on estimates.
Some suppliers offer favourable tariffs to customers on smart meters. But if you switch away from the supplier that installed your smart meter, you’ll likely lose its functionality.
Insulate your home
Some steps are more about future-proofing your household against long-term energy bill increases. Among these are insulating your loft, which can save up to £200 a year for the average semi-detached house. There’s a good chance that your home has too little insulation, perhaps because the existing material has been in place for too long. Check your existing provision is in good condition and make sure you have the recommended 270mm of insulation fitted.
Also see if you can insulate your walls and any exposed hot water pipes. The Energy Saving Trust has more information on insulation. You may be eligible for support with energy efficiency measures for your home. Check the Ofgem website for details.
Image by Colin Behrens from Pixabay
