Switching energy supplier could save you £300 per year - and following these energy saving tips could save you even more.
Looking at the weather report for this week has reaffirmed to me that winter is definitely on its way. It's freezing outside! And of course, with cold weather comes high heating bills as we attempt to keep warm.
With warnings from energy regulator Ofgem's boss Alistair Buchanan that due to a crisis in Russia's gas supplies fuel prices in the UK are expected to rise next year, those bills may be set to soar even higher.
Switch supplier
Indeed, one of my jobs for this week is to switch energy suppliers. We haven't switched for a while and as our bills are quite high I think there's still plenty of room for improvement.
Interestingly, our friends at Xelector reckon most of us could save £300 on average by switching gas and electricity suppliers (assuming an average user that uses 3,300kWh electricity/20,500 kWh gas in London, who has not switched before and pays quarterly). And for many people the saving could be even greater, so it's well worth doing.
Do it now!
What's more, as it can take 4-6 weeks to switch, now's the time to do it if you want to benefit from lower tariffs while the weather is at its coldest (apply in January and it'll be February/March by the time you've switched, by which time we're two thirds through winter!).
The good news is switching supplier is one of the quickest and easiest things to apply for - it can literally take less than 10 minutes. And there are some great value tariffs on the market at the moment from new companies such as First:Utility and Ovo that should help slash those heating bills and save you a few quid.
So what do you need to do?
Grab a copy of your latest gas and electricity bills (or preferably the last four quarters' worth) and head on over to an energy comparison site - to make things ultra-simple we have our very own switching service here at lovemoney.com.
Plug in your personal details, supplier information and usage and hey presto, within seconds you'll receive a quote showing what you could be paying - and saving. You can find out more in "A step by step guide to switching energy". Just remember to cancel your old direct debit once the new supplier(s) is up and running.
Just remember:
- Paying by direct debit is usually the cheapest method
- Using the same company for your gas and electricity is not always the cheapest way to buy your fuel - compare how much it would be using separate companies too.
- Just because you've switched in the past doesn't mean you can't save more - it's worth regularly checking with a comparison service
And as a quick search revealed I could save £90 by switching despite having changed supplier last year, that's enough to convince me to go ahead.
Slash those bills further
But don't stop there. According to recent research for every £3 we spend on heating our homes, £1 is wasted through poor energy efficiency. So once you've switched supplier it's time to tackle that energy consumption. Why not try these tips:
1) Insulate
One of the most cost effective ways you can reduce your home's fuel consumption is by insulating it.
According to the Energy Saving Trust, getting cavity wall insulation can significantly reduce the amount of energy it takes to heat your home and save you around £120 per year, on average. Note: most houses built after 1983 will already be insulated.
And of course as the roof is a great culprit for losing heat (around 15%) fitting loft insulation can be one of the easiest and best ways to save money. Fitting the recommended depth of 270mm can be relatively inexpensive and save around £155 in annual heating bills.
Best of all many homes are entitled to a government grant to help with the cost of cavity wall or loft insulation.
2) Thermostat
Turning down your thermostat by just one degree can reduce your heating bill by 10% - and you won't even notice the difference. And turning down your hot water tank to 60 degrees Celsius can save another tenner per year - as well as meaning your hot water isn't scalding hot.
3) Look after your boiler
If your boiler is more than 10 years old, chances are it is losing efficiency. Modern condensing boilers are the most energy efficient, converting 90% of the fuel they use into useful heat, compared to just 60% for a conventional boiler - which could save around £250 per year.
But if replacing your boiler is out of the question make sure you get it serviced regularly, not only to ensure it is safe but also to spot any potentially expensive problems early.
4) Energy saving lightbulbs
These little beauties may cost a bit more than a standard bulb (from around £3 each) but they last 12 times longer, meaning you could save a whopping £7 per year, per bulb. And with the average house using 17 of them that's £120 you could save yourself per year by switching.
5) General energy saving
Finally, remember that an appliance on standby is still sapping electricity so switch off anything you aren't using. Close your curtains at dusk to stop heat escaping. Wash your clothes at 15 degrees Celsius and use dryer balls in the tumble dryer. And if you need to replace appliances, check for AAA energy ratings to help reduce energy consumption even further.
So don't hang about, switch supplier and think about saving energy - and hopefully your bills won't be too shocking this winter.
Get help from lovemoney.com
If you need a bit of help cutting the cost of your bills, we can help.
Adopt this goal: Cut your gas and electricity bills
And why not have a wander over to Q&A and ask other lovemoney.com members for hints and tips about what worked best for them?
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