Understand your energy usage and reduce your bills

The recent heat wave isn't just good news for those wanting to spend more time in the sun, it is also good news for your energy bills. The long days and warm weather mean your energy consumption is at its lowest point in the year, and there has never been a better time to review your energy tariff - asking your supplier for a refund on any credit balance, learning more about where and when you use the most electricity, and comparing the market for more competitive deals, mean you'll be well prepared for when the expensive autumn and winter months arrive.

Read on for Tesco Compare's tips and you could see your energy bills reduce by up to 40%.

Get an energy monitor

There are now a number of inexpensive and easy to use gadgets available online and at High Street stores, or even through some of the energy suppliers direct, which measure how much power home appliances use up. Consumers will probably be surprised at the gadgets around the home that cost them the most - and the least - and will certainly see how they can save money on their bills.

People normally assume that it's the big electrical items in the home such as plasma televisions and computers that burn the most electricity, but in actual fact it is smaller devices that consume the most energy. For instance, heated towel rails can cost around £10 per month to heat; whilst leaving the coffee machine on standby could add around £10 on your monthly electricity bill.

Wireless electricity monitors can be bought from a number of electrical shops online, including Tesco Direct, and on the High Street for as little as £30-£50. Some energy providers are even giving similar devices away for free - E.ON currently offers a free energy monitor to all customers on its Energy Saver 8 tariff, plus customers can sign up to earn Tesco Clubcard points on their energy bills.

Tescocompare.com's team tested E.on's gadget for a number of weeks and were astonished at the results. We now know the following:

Lighting makes up nearly 40 per cent of the energy bill
Leaving the coffee machine on standby costs about £10 per month
Heated towels rails cost as much as £10 per month to keep running
Overall monthly saving = £30

The monitor was installed in a matter of minutes, by clipping a sensor around the electric wire that connects the electricity meter to the fuse box. The separate display device, which can be placed anywhere in the house, displays the usage in real-time.

Make sure you don't overpay

Consumers who pay by Direct Debit should take an up to date meter reading and ask your supplier to adjust your direct debit amounts for the summer months ahead, when you will be using less electricity. Chances are that if you pay your bill by monthly Direct Debit you could be in credit by as much as £300. By adjusting your Direct Debit at this time of year you can save 10 per cent, and if you have already run up a credit of £150 or more, ask for your money back - this is your right as a consumer.

Manage your account online

Consider opting to manage your energy account online. Energy suppliers have improved their websites, making them much simpler and straightforward to use. There are also interactive tools to help you understand how energy is used in the home, and tips to make your home more energy efficient. Customers managing their accounts online should also ensure they regularly log in and provide accurate meter readings.

Get in quick

Deals and tariffs tend to be available on a first come, first served basis, and the market is constantly changing - so if you see a good deal, snap it up - it might not be around for long. And don't be afraid to fix. Suppliers tend to charge a penalty if you leave before the end of your agreed fixed period, but this is usually £30 or thereabouts. Weigh up how much you are due to save by switching to another provider - it's usually more than this penalty fee.

Keep cool

Other ways to stay cool this summer without spending too much money is to minimise sources of heat: Standard or halogen light bulbs, big LCD or Plasma TV sets, refrigerators, washers, dryers, Personal Computers, ovens, hot water pipes and boilers are significant sources of heat, which will exacerbate the effect of a heat wave. Make sure you turn off what you don't use, use insulation where you can, and invest in more efficient lighting for your home. Visit the Energy Savings Trust (est.org.uk) for help and information on making your home more energy efficient.

Visit tescocompare.com to see how much you could save by switching energy provider.