Ofgem announced that the price cap will go up from the start of October
From October, the energy price cap in the UK will see a rise of over 2% to £1,755, adding an extra £35 to annual gas and electricity bills for those on the standard tariff.
The cap, adjusted by Ofgem, is primarily based on the cost of energy on wholesale markets. However, this two per cent increase is partly due to the increased cost of transporting energy and the additional support measures that have been implemented for consumers.
The price cap limits the rates charged for each unit of energy and standing charges, meaning your actual bill will still depend on your household’s energy usage.
Consequently, households using a typical amount of energy on standard or variable tariffs will pay £1,755 a year, while the price for prepay energy customers will be capped at £1,707 a year. Those who pay upon receipt of their bill will be capped at £1,890 a year.
Liz Hunter, commercial director at online comparison site MoneyExpert, has put together some practical ways households can consider reducing their energy bill costs before the new price cap comes into effect, reports the Daily Record.
These nine tips delve into both short and long-term strategies to decrease the amount of energy used around the home, which should positively affect utility bills.
Review your energy bills
Many of us are currently unable to save money by switching energy tariffs or providers due to the lack of cheaper energy deals on offer. However, there are still ways consumers can reduce their bills. One way is to switch to online billing to avoid the administrative fees associated with paper bills. If you are currently receiving paper bills, consider asking your supplier if they can switch you to paperless billing and manage your bills online, if possible.
Paying by direct debit is often the cheapest option, as some suppliers offer discounts for those who choose this payment method. However, if your supplier wants to increase your direct debit by more than you can afford or were expecting, it is worth asking them to explain why.
Lastly, providing your supplier with regular meter readings will ensure your payments are accurate and prevent estimated bills, which can sometimes be quite high. If you have a smart meter, it should automatically send meter readings, but it is always good to double-check this on your smart meter or with your provider to make sure you are not being given estimated bills.
Cutting your laundry costs
Despite washing machines becoming more energy-efficient, they are often one of the most frequently used appliances in the home. While they may be convenient – especially for larger families – they use a lot of water and can be expensive to run.
Running a wash during peak times can be costly, but simple changes could save you around £27 annually:
Avoiding these peak times will save money on each wash.
Running your cycles on a 30-degree ‘eco mode’ wash will use less water and energy during the wash (unless your clothes are really dirty, in which case you’ll need a higher temperature wash). However, if you mainly run low-temperature washes, you’ll need to do the occasional hot wash to get rid of any bacteria and the buildup of odours in the machine.
Always wait until you have a full load before running a cycle. If you must do a smaller load, use the shortest, lowest-energy cycle possible (often referred to as a ‘quick wash’), which means less water, less energy, a shorter spin cycle and a lower temperature.
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Cutting down on drying costs
Consider upgrading to an eco-friendly heat pump dryer to conserve energy and money. Tumble dryers are notorious for their high energy consumption, especially if they are inefficient.
The cost of one cycle in an electric tumble dryer ranges from 50p to £1.80, depending heavily on the type of dryer, its energy efficiency rating, and the current electricity price cap.
An A-rated heat-pump dryer, on the other hand, costs approximately 50p to 65p per full load cycle, though this can vary based on your specific electricity rate and the model of the dryer. If you own a tumble dryer, cleaning the lint filters after each use can help save money. A clogged filter prevents free air circulation and prolongs drying time.
If you prefer natural drying, it can save you the most money. However, avoid hanging wet clothes on radiators as it can lead to condensation and make the radiators run inefficiently, costing you more in the long run. Opt for a clothes horse or drying line instead.
Save energy on heating
A more efficient heating system can save money, and even minor adjustments, like lowering the thermostat by one degree, can cut heating bills by 10%. To avoid wasting energy, it’s recommended to set your heating timer to only come on when you are at home and need the heat. Many companies now offer advanced smart controls for heating systems that connect to the internet.
These smart controls are similar to a timer but more sophisticated, allowing you to adjust timings remotely. Adding these to your heating system can provide the flexibility to alter your settings from afar, ensuring energy is only used when necessary.
A cost-effective method to retain heat in your home is to install reflector panels behind your radiators. These panels help distribute the heat faster by reflecting it back into the room, keeping you warmer for longer periods.
Maintain the cleanliness of your appliances
Homes are bustling environments, and while we all aim to keep up with general cleaning, deep cleaning every nook and cranny regularly may not be feasible. However, did you know that accumulated dirt can affect the efficiency of your larger appliances?
Large appliances such as fridges, ovens, dryers, dishwashers or washing machines can accumulate dust or grime over time. This can impact their energy efficiency, leading to higher energy bills as they require more energy to operate. An example of this is fridge filters, which need regular cleaning to function efficiently. Regularly dusting the condenser coils can help your fridge run at its optimum efficiency.
Older appliances may not be as energy-efficient as their newer counterparts, potentially costing you more as they work harder and consume more energy. If your budget allows, consider upgrading to a more energy-efficient model. It is important to weigh up the cost of a new appliance against potential savings to determine if it is worth the switch.
Maximise your kettle usage
Many of us have a habit of overfilling the kettle when making a cuppa; this can lead to unnecessary energy use and expense. Aim to boil only the amount of water required, which could save you approximately £10 annually. Most modern kettles feature a minimum-fill line and automatically switch off once boiling.
To further conserve energy, consider boiling a full kettle in the morning and transferring any leftover hot water into a large thermos flask for use throughout the day. This strategy could prevent multiple kettle boils, saving both energy and money.
An ageing kettle may require more energy and time to heat water. Therefore, if you own an older model, it might be time to upgrade to a more energy-efficient version, which could result in long-term savings. Regular descaling is also crucial – a kettle full of limescale uses more energy to boil water, contributing to higher energy bills.
Turn off energy-draining devices
The term ‘vampire device’ refers to electrical appliances that continue to consume power when they are plugged in but not in use, such as a television left on standby. While this might seem convenient, it adds to your already escalating energy bill.
Although it may not appear significant in the short term, over a year, the cumulative cost of leaving multiple devices on standby can noticeably increase your bills.
Common ‘vampire devices’ include microwaves, computer screens, coffee machines, white goods and chargers. Some appliances, like a modem or a fridge, need to be kept on all the time, but most electronic devices can be switched off at the plug when not in use to save money. By doing so, you could save up to £45 annually.
Draught-proof your home
One of the easiest ways to save money and energy is to draught-proof your home and top up your loft insulation. Even though it might not be too chilly yet, it is wise to prepare and start setting up your home’s insulation in readiness for the winter weather.
Improved insulation helps decrease the total amount of energy you use, including what you use to heat your home. Furthermore, a quarter of your home’s heat escapes through the roof, so retaining this warm air inside means your home will stay warmer for longer and you won’t be wasting energy and money.
DIY fitting foam insulation around exposed hot water pipes could cost as little as £15, and the more you add, the more money you will save. Many homes have gaps around doors and windows, which can result in heat escaping from your home. If you stop this heat escaping, you could save yourself up to £85 a year.
It’ is also worth noting that if you have an open chimney, draught-proofing it with an inflatable pillow when it’s not in use could save a further £65 a year.
Another money-saving tip is to use draught excluders and sealant strips to keep warm air in while maintaining proper ventilation by not covering air vents.
Just remember that when you are adding insulation to your home or draught-proofing gaps, you do need some ventilation in the home. So make sure you aren’t covering up holes that are supposed to be there, like trickle vents in window frames.
Invest in energy-efficient features
Installing a few additional features in your home can be an effective way of saving money on your energy bills. For example, investing in thermostatic radiator valves can help control the temperature of individual radiators so you can make sure you are only heating the rooms you actually need. This reduces the volume of hot water going to the radiators, using less energy and helping save you money.
Switching to LED bulbs could save you up to £8 a year and they last longer than traditional incandescent lights. Another cost-effective measure is fitting an energy-efficient shower head, which controls the water flow, reducing the amount used during showers.
If you’re considering purchasing a new appliance like a fridge, washing machine or tumble dryer, opt for one with an A+ rating or higher (A+++ being the highest), ensuring it is not only more energy efficient but also better for the environment.
How to get help if you are struggling to pay bills
For some households, merely reducing usage or making minor adjustments will not be enough to make their energy bills manageable. Some families may require additional help or support to cover their energy costs. If this is your situation, get in touch with your energy supplier at your earliest convenience.
Discussing it with your provider might seem daunting, but it is the most effective way to receive help. Your options might include setting up a monthly direct debit payment plan, switching to a different tariff – such as a social tariff, extended payment periods, payment holidays, or you might be eligible for grants, schemes or hardship funds.
Energy suppliers are obligated to take certain measures before disconnecting your supply, so if you’re upfront with them, they will assist you in finding ways to pay.
If you find yourself in a pressing financial crisis, there are numerous organisations and charities ready to offer support, including Citizens Advice, MoneyHelper, National Energy Action, National Debtline and StepChange.
