Get energy smart
Universal smart meters are up to a decade away, but savvy consumers can get in control of their energy usage and start saving energy and money now. According to uSwitch.com, the independent price comparison and switching service, all of the big six energy suppliers are now offering schemes designed to help customers become more energy efficient. However, the approaches they have taken vary dramatically, from offering specialist ‘energy efficiency plans' that carry a premium to giving customers on any tariff a free energy monitor.
As a result, people need to weigh up the benefits before signing up. Energy efficiency plans cost £1,101 on average, £125 or 13% more than the average online plan. However, they come in at £6 cheaper on average than standard plans paying by direct debit and £105 cheaper than standard plans paying quarterly by cash or cheque, so can offer a genuine saving for those who haven't yet made the move to a competitively priced online plan.
On top of this, there are real savings to be made if consumers take full advantage of the control these plans give them over their energy consumption. The tariffs provide devices, tips and advice, all designed to help make customers more energy efficient.
People also have the opportunity to wave goodbye to estimated billing, which can see them falling into debt with their supplier. Most suppliers offer tariffs which allow customers to upload meter readings and track their energy usage, while British Gas EnergySmart offers accurate monthly billing for those who submit meter readings.
EDF Energy meanwhile offers EcoManager, a device which allows you to see the cost of running individual appliances and switch them off remotely. SSE's iplan offers a monitor which warns you when you are using a lot of electricity. It also enables you to compare your usage with a previous time period, similar households and with other iplan customers. By making sure they take full advantage of energy efficiency measures, consumers could save up to £165 a year.
However, some households can get a free energy monitor from their supplier without signing up to a premium-priced plan. In fact, they can get a monitor while still enjoying competitive online rates. E.ON offers an Energy Fit starter pack (a free monitor) to all its customers. This means you could be on its cheapest online plan costing only £955 a year and still be able to get a free monitor.
For a limited period, existing npower customers can receive a free monitor when they sign up to paperless billing - which is available on all tariffs, starting at £952 for its new online plan. Energy monitors allow households to better understand and track their usage and take positive steps towards reducing their consumption and ultimately their bills.
ScottishPower also offers a free energy monitor with its Platinum Fixed Energy January 2014 plan. This plan comes with the added benefit of boiler care, worth up to £150 and the promise of fixed prices until 2014. It also includes a discount of up to 25% off cavity wall insulation. These extras come at a premium and the plan is £249 more expensive than its cheapest online plan and £108 more than its standard plan paying by direct debit. However, this could offer good value to consumers if they want to protect themselves from future price rises and boiler-related disasters. As with any plan, consumers should always check the small print first.
Tom Lyon, energy expert at uSwitch.com, says: "There is no right or wrong answer as to whether these new energy efficiency plans offer good value or are an expensive gimmick - it is down to the individual consumer and whether they will make full use of the information and advice provided. By being energy smart and taking advantage of everything the tariffs offer, consumers can offset any extra costs they may incur and make extra savings. But, they need to be realistic about how much effort they will put in to cutting back on their energy usage.
"If you switch from a standard plan paying by cash or cheque and make the maximum savings possible on an energy efficiency tariff you could end up nearly £500 better off. But if you know that you may not make the most of the energy efficiency savings on offer an online plan could be a better option for you."