Brits face biggest ever winter energy bills
Bill payers reeling from the coldest winter for 30 years are warned they now face record high energy bills, according to research by moneysupermarket.com.
The UK's leading price comparison site found that a standard tariff winter energy bill for an average household has increased by 20 per cent, or £104 in just 12 months - from £512 to £6161. This means that anyone paying their bill quarterly will be awaiting a bill that is more than likely to be the biggest they have ever received. Standard quarterly tariffs are the most expensive ways to pay for energy yet over half of us are still on a standard tariff.
Taking a broader, and more historic view to put the current bills in perspective, moneysupermarket.com found that bill payers are now paying record highs for their winter energy bill which has more than doubled over the past six years; since 2003 the average household winter energy bill has jumped from £217 to £616 a year, an increase of £399, or 183 per cent.
Scott Byrom, utilities manager at moneysupermarket.com, said: "Many people will be getting a hefty quarterly statement landing on their doormat at anytime, that's if they haven't already received this nasty surprise. This bill is likely to be the biggest winter energy bill they've ever had to pay. It is therefore extremely important for bill payers to address this issue and do what ever they can to reduce their bills going forward - especially as the cold weather and snow looks set to continue for many parts of the UK.
"Although there were price decreases throughout 2009 the majority of these price moves were to providers' online tariffs rather than to standard tariffs. With the backdrop of recession, a very cold winter and higher than usual energy consumption, people need to think seriously about how they will pay for their usage. The prospect of forking out for a chunky winter bill should be the catalyst to swap to the best tariff for their region and consumption, as well at actively trying to be more energy efficient and reducing the amount of energy they use to save money."
Further analysis found a customer on a standard tariff, paying an average £1,233 a year by quarterly cash and cheque, faces a whopping winter bill of £616 but could make a considerable saving by switching. Moving to the best available online deal, and paying by monthly direct debit, annual energy consumption would come in at £927 a year, a saving of £305, or 25 per cent off an annual bill. Paying bills by monthly direct debit is the best way to safe guard against having to pay a large winter bill at once as your payments are spread over a 12 month period and in more manageable instalments.
Scott Byrom continued: "Our research has shown people use 40 per cent of their annual energy consumption over the winter and with this winter bill at an all-time high, many people will be hit with a chunky bill soon."
moneysupermarket.com's top tips to minimise your gas and electricity bills:
Turn your thermostat down - now. By reducing your room temperature by just 1°C you could save an astonishing 10% on your annual heating bills.
Switch off and save. Don't leave electrical appliances on standby as it still uses power. Make it a nightly ritual to ensure all lights and appliances are off and watch those savings mount. For example, leaving your computer on 'sleep' means it is still using 75% of its energy.
Almost 25% of heat is lost via poorly insulated roofs. Invest in insulation - it is cheap and effective. What is more, many free grants are available from local councils for pensioners and those on low incomes.
Heating the whole house is justifiable for a large family but for working couples and singles, it is more cost-effective to heat only the rooms you use most. Invest in a low energy heater.
In the winter months, it pays to close all your curtains as soon as dusk sets - they keep the heat in and are one of the simplest and easiest ways of cutting back on heating bills.
Change to energy saving light bulbs. You can save up to £40 over the lifetime of the bulb.
Invest in a microwave oven. They are fast and efficient particularly for small families and singles and use a fraction of the energy of a conventional gas or electric cooker.
Watch out for draughts around doors (keyholes, letter boxes, gaps in doors and windows). Heat escaping your home is money wasted, so get yourself kitted out. Draught excluder packs are available from most DIY stores and for as little as £60. It is estimated that good draught exclusion around an average terrace can save as much as £25 a year, so it will soon pay for itself.
Double-glazing is pricey to install but will make a difference to bills over time. Heat loss through windows is cut by a whopping 50% - saving around £100 a year on bills.
Don't fill your kettle each time you go to make a coffee or cup of tea - only use the water you need. It will be quicker to boil and use less energy. It's a simple tip but makes a difference.
Take showers and not baths. While a hot bubble bath may feel like a treat, the cost of heating the water soon mounts up. A shower uses around a third of the water of a bath.
If you use a washing machine turn the temperature down to 30°C. Today's washing powders are so efficient they do not need to be used at high temperatures. Even better, get into the habit of hand-washing and just using your machine's spin function. It saves both time and money