I realised this week that we have cut our energy bills (gas and electricity) by half compared with what it was this time last year. I’m quite proud of that! I haven’t done anything radical, but I have played the system a bit, so here are my tips to see if you can make a saving too.
You probably shop around for a mortgage deal and the best credit card, so why not your energy account too? We’ve ended up saving hundreds of pounds per year on our energy bills, which actually makes me quite embarrassed now that we paid so much before!
[At this point I will declare an interest that I have an energy company as a business client, but what that does mean is that I can share a bit of insider knowledge!]
1. Get an online account
Most of the UK’s energy providers allow you to register for an online account. This enables you to access your details via the web and gives you better visibility of your energy usage and therefore puts you in control. Look for a ‘log in’ or ‘register’ button on your energy company’s website.
2. Check you are on the right tariff
Using your online account you can see if you are on the right tariff for your needs. If you have come to the end of a fixed term deal (just like mortgages you can get 1-year or 2-year fixed price deals for energy) you may have been transferred onto a standard tariff, which is normally higher rate and will be costing you more. Use your company’s tariff checker to see if you could save money by switching to a different product. Before you switch check if there is an exit fee for the product you are currently on.
3. Select the money saving options for your new tariff
Some companies give discounts for paperless online billing and monthly direct debit. Unless you have an aversion to either they can save you a reasonable amount of money (£50+). If you are on a pre-pay meter try to get a credit meter installed as they generally offer better priced deals. If you opt to take both gas and electricity from the same provider you may also qualify for a dual fuel discount of £15-£20. Some providers offer extra benefits such as Tesco Clubcard points or Amazon vouchers either as a one-off golden welcome or as an ongoing customer benefit, so take those into account too.
4. Opt in to price alert emails
Some providers will notify you each time they drop their prices or issue a new product that could be cheaper. Other providers will notify you 6-monthly. Either way, it is worth signing up for this service as it ensures that you are kept up to date on the latest deals from your current provider.
5. Join the Cheap Energy Club and switch supplier
Sign up for Moneysavingexpert.com’s Cheap Energy Club. This works as an intermediary, using the collective buying power of all the members to negotiate the best prices for a fixed time period. Again, it is worth signing up to join the club and you will be notified when a collective switch is available. When the switch opportunity comes along you get to select the best tariff for you, from whichever company you want, and the switch is managed via the intermediary.
Before you switch just check out the green credentials and customer service ratings for your new supplier, as it is sometimes worth paying a little extra to get a good service. You can however even use the club to switch tariff and stay with the same supplier.
6. Get accurate bills
Estimated bills are not good for you or the energy company, so provide regular (at least monthly) meter readings (either online or via your company’s mobile app) to ensure that you get an accurate bill. Otherwise you could be paying over the odds for energy you haven’t used. Watch out for what they call the ‘billing window’ which is a period during which the meter reading/estimate that is on the system is used even if you provide an accurate reading.
Once Smart Meters are installed across the country you won’t have to provide meter readings any more as they will be automatically transmitted to your provider, but for now the responsibility is for you to provide accurate consumption data to your provider.
7. Cut your energy use
Whilst the biggest savings to be made are by switching supplier and/or tariff you can still save money by cutting down on the amount of energy you use. A lot of the energy saving tips will save you a few pounds a year, but I discovered that the biggest savings you can make are by turning your heating and/or hot water down by a few degrees.
Being completely nesh [Nesh: Nottingham slang for a person who feels the cold] I couldn’t face turning our heating down but have dropped our water temperature to 60 degrees (Hot water should be stored at 60 °C at least in order to kill legionella bacteria.) No-one has noticed and I am sure it has made a difference to our energy bills!
Many energy companies offer an energy saving tracker tool online, or a counter-top energy monitor which are worth using for a while at least to understand where you use energy and how you could make savings. Worth looking into if you have the time and sufficient attention span!
I’d love to hear how you get on and if you manage to make savings too!