Ensure energy bills match your consumption

Brits living in flats and terraced houses could be paying over the odds for their gas and electricity by not correctly identifying the best value energy product for their consumption, according to moneysupermarket.com.

When it comes to choosing an energy tariff the majority of bill payers will choose from costs based on the average consumption of a medium house - 3,300 kWh of electricity and 20,500 kWh of gas. However, levels of use can vary greatly depending on the size of your home.

According to research from the price comparison site, British Gas WebSaver 3 is the cheapest product on the market in all of Britain's 14 regions for an 'average' house, with an average bill of £1,018 per year. However, for ‘low' consumption bill payers, those living in flats or on their own for example, the SOL 15 tariff from npower offers the best value option for 12 regions with British Gas claiming the remaining two; an average cost of £527 a year. ‘Low' consumption households could save as much as £172 a year on average by swapping from the incumbent tariff to the cheapest available.

For households with higher consumption, for example a four bedroom family home, it's a different story completely - while British Gas is cheapest for the Yorkshire region, its E.ON's EnergyOnline Extra Saver 14 that snatches the top spot for the rest. The average bill for these customers comes in at £1,394 a year on average. These bill payers could see savings of £326 a year on average by moving from the incumbent to the average cheapest tariff available.

Scott Byrom, utilities manager at moneysupermarket.com said: "The figures for an 'average' house are used in advertising and as the default numbers when comparing prices. So, if you don't know your typical energy usage, you may well choose a tariff that isn't the best deal for you and doesn't represent your household's consumption.

"For bill payers looking to swap their supplier to save cash as they emerge from this year's first round of price cuts3, it's important to remove the guess work and know exactly what your energy consumption has been over the past 12 months by looking at your bills - there are clearly savings to be made. If you don't have bills going back that far, phone your energy provider and ask for the historic details of your energy use.

For those bill payers on standard tariffs, paying quarterly by cash or cheque, there are also savings to be made by ensuring you seek out the best tariff for your level of usage, and in most cases, move away from your incumbent provider. High consumption households in Yorkshire for example could save £185 a year by swapping from the incumbent provider (npower for electricity and British Gas for gas) to the cheapest alternative.

Scott Byrom continued: "Its clear online tariffs remain the best deals on offer for Brits, no matter what your consumption. But whether you pay by monthly direct debit for an online tariff, or by quarterly cash or cheque for a standard deal, just because a provider is cheapest for your neighbour, it doesn't mean they'll be cheapest for you. I advise each person to evaluate their own situation and find the right tariff to cut the cost of their bill. Shopping around for the best energy deal is a quick way to make big savings".