MoneyMagpie Editor and financial expert Vicky Parry reveals how to beat energy price hikes in winter
Autumn is well on its way – and with it, a rise in the energy price cap. Saving money on your energy bills has become something of a seasonal issue, but it means there are now some tried-and-tested ways to keep your bills low.
Compare your energy tariff
When was the last time you shopped around for a better price on your electricity and gas? Most tariff contracts are a year or two years long, but we’re all guilty of not knowing when that contract actually ends.
When you’re out of a fixed term period on your tariff, you could be paying over the odds for your electricity and gas. Use a price comparison tool online like USwitch to find the best prices available to you. To save even more, go via a cashback website like Topcashback or Quidco, as this will give you a chunk of change as a rebate and could net you an exclusive discount, too.
Take a meter reading
Smart meters are more widely used than ever, but that also means we’ve become used to not taking readings. Even if your smart meter works perfectly, make sure you take a photo of it once a month. This will help you work out your average usage and have a record of readings should something go wrong.
More importantly, take a meter reading on 31st September and submit it manually to your provider – even if you have a smart meter. That’s because the Energy price cap rise applies from 1st October 2025, so you want to make sure you’re being billed at the right rate for the right dates.
Change your direct debit
Direct debits for energy companies are set to average your cost over the year. It means you pay more than you use in warmer months, to build up credit for the winter. In theory, this makes your payments easier to budget for rather than being hit with huge bills in winter.
However, this process often means we hold several hundred pounds worth of credit in our energy account. Your supplier won’t reduce your Direct Debit unless you ask them to – and if you have a big surplus of credit, there isn’t a need to continue paying so much on top each month.
If you pay direct on receipt of your bill, consider switching to a Direct Debit as this often comes with a discount as an incentive.
Go old school
Use old-school knowledge of keeping warm to avoid putting the heating on until winter really sets in. Use hot water bottles, wear layers, cover up with a blanket on the sofa, and add an extra quilt to your bed.
Wearing socks and slippers indoors can make a big difference to feeling warm, especially if you have hard floors. Cosy living isn’t just an aesthetic, it can save you a lot on your energy bills!
Use free energy hours
Octopus offers free energy hours if you sign up to alerts and pay by Direct Debit. The way this works is that you pay for the average amount of energy you would normally use – but not for anything extra used in that hour.
The alerts are usually sent out a day in advance, so you can plan. As well as doing your normal activities at that time, put your car on charge, run the washing machine and tumble dryer, charge up all of your battery-operated appliances, and do the big hoover session of the week. All the extra energy over your average will be free (credited to your account).
Maximise off-peak tariff time
If you’re not an Octopus customer, you can still make the most of cheaper times. Those with off-peak tariffs can take advantage of timer switches and delay starts on appliances like washing machines to ensure they use the most electricity at the cheapest times.
Those with a heated water tank instead of an on-demand boiler should also set timers on their system to ensure the hot water heats up at night during the cheapest hours. Insulated tanks keep the water warm for a long time.
Remove draughts
A draught doesn’t have to be a major breeze to knock the temperature of a room down by a few degrees. Install thermal blinds, curtains, or curtain liners to instantly reduce heat loss from your windows. Invest in some draught proofing tape – which is about £5 a roll – to run around your windows and door edges to stop the breeze getting in.
Refer a friend
Earn credit on your energy account by referring a friend. Referral schemes can offer up to £50 to you and your friend if they switch supplier to yours. If three or four friends switch over in the next few months, that could be your winter energy bills paid for!
Make the most of battery power
While battery appliances and devices are commonplace, we often leave them plugged in unnecessarily. For example, many of us use a laptop at home for work, plugged in on the desk all day. When the battery is full, unplug it and use the battery life!
Set switch timers on chargers for items like your mobile phone, to make the most of off-peak prices. If you have multiple items to charge, create a charging station using an extension lead. That way, you only need one timer switch for three or four devices.
Consider battery operated lamps, too. These can provide extra light during murky daylight hours, but charging them at night will keep them cheaper to run than a desk lamp running at peak hours.
Avoid the central heating
Heating an entire house is what racks up winter energy costs really fast. If you live alone or work from home on your own during the day, consider only heating a single room.
Portable oil radiators, fan heaters, and halogen heaters are all cheap and easy to use, providing heat as and when you need it. The heat is also instant, so you can take the chill off the air in minutes rather than needing a heater on for hours.
Saving money on energy bills takes just a little bit of planning, but you could slash your bill by a significant chunk of cash every month if you follow these steps.
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