The cost of energy is set to soar this winter, with bills potentially rising by hundreds of pounds.
This year, wholesale gas prices have risen by 250%. In the last month alone, they’ve risen by 70%. This sudden surge has been caused by a number of factors, including increased global demand, lower supplies of gas from Russia and a fire in Kent that affected the electricity we import from France.
Due to this, many customers are concerned about spiralling energy bills. However, if you’re currently on a fixed-term deal, then there’s no need to worry just yet. This is because your supplier cannot start charging you more per unit for the gas and electricity you’re using until your deal comes to an end.
But, if you’re instead on a standard variable tariff or your fixed-term deal is coming to an end, then your bills are set to increase. However, you’ll be pleased to know that you’re offered some protection by the energy price cap, which will prevent your bills from skyrocketing. This is because the price cap sets a maximum amount that your energy supplier can charge you per unit of energy you use.
If you’re currently on a standard variable tariff, then you may be able to save money on your energy bills by running an online energy comparison. Although many of the cheapest energy deals have already been taken off the market, running a price comparison will show you the best energy deals that are still available from the country’s best energy suppliers. If you see a suitable deal, you can then lock in a new rate for your energy that will stay fixed for the next 12 months or longer.
Although there’s no guarantee that this method will save you money against the current price cap, it is still advised by some experts. This is because it’s predicted that the price cap will rise by another £280 when it’s reviewed next year. As a result, by running a price comparison now, you could beat this impending price hike if costs stay high.
- Switch to a fixed deal: See the best deals in your area now
5 simply energy saving tips
Other than ensuring you’re on the best deal available, there are other simple steps you can take to keep your energy bills down.
1. Use heating controls
If you use heating controls in your home, you’ll be able to ensure that you’re only heating the rooms you need. By taking this step, you could save £70 a year on your energy bills. As an added bonus, heating controls will also save you around 300kg of carbon emissions a year.
2. Turning down the thermostat
This may seem like a basic step, but many people are unaware of the huge impact that turning down the thermostat slightly has on heating bills. After all, turning down a thermostat by just 1°C can save you as much as £80 per year.
3. Reduce your water use
When we think of our heating bills, very few of us consider the amount of water we use. However, around 22% of our heating bills relate to water heating.
Here in the UK, the average person uses around 145 litres of water per day. But, there are plenty of ways you can reduce this figure, such as purchasing a water-efficient shower head. Taking this step alone will reduce your water usage by around 32 litres a day.
4. Turn appliances off
By leaving your appliances on standby rather than turning them off, you’ll spend around £35 a year more on your energy bills. So, something as simple as pressing a button really could save you money.
5. Upgrade to efficient appliances
When your old appliances reach the end of their lifecycle, it pays to go energy efficient. As a result, when you go to purchase new items, check their energy efficiency rating before you buy.
It’s estimated that switching to a more energy efficient fridge freezer could save you £113 a year on your energy bills, so it definitely pays to do your research. And remember, spending a little more could actually save you money in the long run if it brings your bills down.