Don’t let energy bills burn a hole in your pocket in 2010
When winter fuel bills start to hit doormats in the New Year consumers could be in for a nasty shock says uSwitch.com, the independent price comparison and switching service.
Even though suppliers cut their prices this year the average household now faces an annual energy bill of £1,239 - £327 or 36% more than at the beginning of 2008. And, unfortunately for cash strapped consumers, households can expect to feel the full impact this winter when they ramp up the central heating.
Household heating accounts for 42% or £520 of the average annual energy bill with most of this spend typically clocked up during the winter months. As a result, households will be bearing the full brunt of high energy prices throughout the coming months. Those expecting this year's price cuts to help them could be disappointed. These only shaved 4% or £54 off the average energy bill - nowhere near enough to make up for the 42% or £381 increase seen by householders in 2008 when bills rocketed from £912 in January 2008 to £1,293 in January 2009.
But while household energy bills are substantially higher than a couple of years ago there is good news for consumers. Online energy plans are now around £300 a year cheaper than standard plans so by moving to a competitive new plan households could take their bills back to levels last seen in January 2008.
Will Marples, energy expert at uSwitch.com, says: "Rather than sitting back and hoping for further reductions we can all give ourselves a substantial price cut on our energy bills today. Moving to dual fuel, paying by direct debit and signing up to an online plan will all help save money. Online energy plans are around £300 a year cheaper than standard energy plans - this is a very simple saving for any household to make. And with only 5% or 1.3 million households on online plans the scope for others to join them and save money is huge."
Don't wait for price cuts - uSwitch.com's New Year guide to cheaper fuel bills:
1) Compare and switch - never switched? Then now is not the time to be complacent as you are likely to be paying a premium on your energy bills. Getting the right deal for you - based on where you live, your actual energy usage and how you like to pay - is key to saving those pounds. If you use a price comparison service, check that it is accredited under the Consumer Focus Confidence Code, impartial and upfront about how it earns its money.
2) Pay the easy way - if you pay by cash or cheque you could be paying just over £100 a year more on average for your energy than paying by direct debit. Not only is direct debit easy, but many suppliers offer a discount for paying this way.
3) Switch two for one - dual fuel (buying gas and electricity from one supplier) can save time and money. Not only do you benefit from dealing with just one bill and one supplier, but dual fuel plans can also offer a discount.
4) Go online - customers on standard plans are paying on average £300 more than new online customers. This is an easy saving to make - don't be put off by it being called an ‘online' plan as some suppliers will only expect you to register online and then manage your account in the same way as before.
5) Keep on top of energy bills - make sure you give regular meter readings to ensure you are being billed accurately and review your energy bills at least once a year to ensure you are still on the cheapest deal.
6) Insulate, insulate, insulate - don't spend hard earned cash heating up the street and not your home. Make sure your loft is insulated to a depth of at least 10 inches.
7) Shed some light on savings - contact your supplier or the Energy Saving Trust to find out whether you would be eligible for a grant or financial help towards making your home more energy efficient.
8) Switch it off - before you go to bed make sure you turn off all appliances such as TVs, computers and DVD players at the socket. Fit energy efficient light bulbs and make sure you turn lights off when not using a room.
9) Turn it down - most of us have the heating on way too hot. Turn it down by just one degree and you could save up to 10% on bills.
10) Cut out the draughts - check your windows and doors are sealed against draughts before the winter chill turns your home into an icebox.