From the 1st of October, the UK's energy price cap will see a rise of over two per cent to £1,755, adding an extra £35 on to annual gas and electricity bills for those on the standard tariff. Ofgem adjusts the cap, which is primarily based on the cost of energy on wholesale markets. However, this two per cent increase is partly due to the higher cost of transporting energy and the additional support measures that have been implemented for consumers.
The price cap restricts the rates charged for each unit of energy and standing charges, so your actual bill will still depend on your household's energy usage. This means households that pay for their energy bills by direct debit and are on standard or variable tariffs will be capped at £1,755 a year.
If you're a prepay energy customer, the price you pay will be capped at £1,707 a year, and those who pay when they receive their bill will be capped at £1,890 a year.
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Liz Hunter, Commercial Director at online comparison site MoneyExpert, has compiled some practical, realistic ways households can look at reducing their energy bill costs before the new price cap comes into effect, reports the Daily Record.
These nine insights explore both short and long-term ways to lower the consumption of energy used around the home, which should have a positive impact on utility bills.
Review your energy billsMany of us are currently unable to save money by switching energy tariffs or providers due to the lack of suppliers offering cheaper energy deals. However, there are still ways consumers can reduce their bills.
Consider switching to online billing to dodge admin fees associated with paper bills. If you're currently receiving paper bills, enquire if your supplier can switch to paperless bills and manage your bills online instead, if feasible.
Paying via direct debit is typically the most cost-effective option, as some providers offer discounts for those who opt for direct debit. However, if your supplier wants to hike your direct debit beyond what you can afford or anticipate, request an explanation.
Lastly, providing your provider with regular meter readings will ensure accurate payments and avoid estimated bills, which can sometimes be steep. If you have a smart meter, it will automatically send meter readings, but it's worth double-checking this on your smart meter or with your provider to ensure you aren't being given estimated bills.
Reduce your laundry costsWashing machines have become more energy-efficient, yet they remain one of the most frequently used appliances in the home. Despite their convenience - particularly for larger families - they consume a lot of water and can be costly to operate.
This is particularly the case if you run a wash during peak times. However, by making a few simple changes, you could save around £27 a year:
- Use your washing machine early in the morning, before 7am, or late at night, if possible, to avoid the surge in price. Electricity demand is highest between 7am and 9am when most people are waking up, and after school or work between 3pm and 6pm. Avoiding these peak times will save money on each wash.
- 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.
- 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.
It might be worth considering upgrading your dryer to an eco-friendly heat pump dryer to conserve energy and money. A tumble dryer consumes a significant amount of energy, especially if it's inefficient.
One load in an electric tumble dryer can cost between 50p and £1.80 per cycle, 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 about 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 do own a tumble dryer, cleaning the lint filters every time you use it can help save money. A blocked filter prevents the air from circulating freely and makes clothes take longer to dry.
If you'd prefer to dry your clothes naturally, this can save you the most money. However, avoid hanging wet clothes on radiators to dry as this can cause condensation and make the radiators run inefficiently, costing you more money in the long run. Use a clothes horse or drying line instead.
Energy-saving tips for your heatingA more efficient heating system can save money, and even small changes, like turning down the thermostat by one degree, can reduce heating bills by 10 per cent.
Try to programme the timer to only activate when you're at home and require the heating, to prevent unnecessary energy wastage. It's worth mentioning that many firms offer sophisticated smart controls for heating systems that connect to the internet.
These advanced devices, similar to a timer but more sophisticated, allow you to adjust timings remotely. Incorporating smart controls into your heating system provides the flexibility to modify your settings from afar, ensuring energy is only used when absolutely 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 cosy for longer periods.
Maintain cleanliness of your appliancesHomes are bustling environments, and while we all aim to keep up with general cleaning, finding time to regularly deep clean every nook and cranny may be challenging. 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 compromise their energy efficiency, leading to increased energy bills as they require more power to operate.
An example of this is fridge filters, which need regular cleaning to function optimally. Regularly dusting the condenser coils can help your fridge run as efficiently as possible.
Moreover, older appliances won't be as energy-efficient as newer ones, which will cost you money as they'll be working much harder and using more energy. If your budget allows, it may be worth upgrading to a newer, more energy-efficient model where possible. You will need to weigh up the cost of a new appliance against the potential savings to see if it's worthwhile switching.
Maximise your kettle usageSome of us tend to overfill the kettle when we're making a cuppa; however, this can cost you money and energy. Try to only boil the amount of water that you need, saving you around £10 each year. Most kettles now have a low minimum-fill line, and switch off as soon as they've boiled.
You could take it a step further and boil a full kettle in the morning and pour the remaining water into a large thermos flask to keep it warm for the rest of the day. This will save you from boiling the kettle several times throughout the day to save you money and energy.
An older kettle will need to work harder and take longer to boil the water you need. So if you have an older model, it might be time to switch to a newer energy-efficient model, which will help you make savings in the long run. Remember to keep your kettle clean by descaling it regularly - if it's full of limescale, you'll be using more energy to boil the water, which can add to your energy bills.
Turn off energy-draining devicesThe term 'vampire device' refers to electrical gadgets that continue to suck power when they're plugged in but not actually in use, such as leaving a telly on standby. While this might seem handy, it will add to your already escalating energy bill.
While it might not appear to be a significant issue in the short run, over the course of a year, the cumulative cost of leaving multiple devices on standby can add a noticeable extra sum onto your bills.
Some of the most common 'vampire devices' include microwaves, computer screens, coffee machines, white goods and chargers. Some gadgets, like a modem or a fridge, do need to be kept on 24/7, but most electronic devices can be switched off at the plug when not in use to save money. By switching these off, you could save up to £45 a year.
Draught-proof your homeMaking your home draught-proof and topping up the insulation in your loft is one of the easiest ways to save money and energy. While it may not be too chilly yet, it's best to be prepared and start getting your home's insulation sorted in time for the winter weather.
Better insulation helps reduce the amount of energy you're using overall, including what you use for heating your home. Moreover, a quarter of your home's heat is lost through the roof, so keeping 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 be a cost-effective solution, with costs as low as £15. The more insulation you add, the more pennies you'll keep in your pocket.
Many homes suffer from gaps around doors and windows, leading to heat loss. By preventing this heat escape, you could save up to £85 annually. It's worth mentioning that if you have an open chimney, draught-proofing it with an inflatable pillow when not in use could save an additional £65 per year.
Another penny-pinching tip is to utilise draught excluders and sealant strips to retain warm air, while ensuring proper ventilation by not blocking air vents. Bear in mind, when insulating your home or draught-proofing gaps, adequate ventilation is necessary. So, ensure you're not obstructing intended openings, like trickle vents in window frames.
Invest in energy-efficient featuresAdding a few energy-efficient features to your home can significantly reduce your energy bills. For instance, thermostatic radiator valves can help regulate the temperature of individual radiators, ensuring you're only heating the rooms you need. This reduces the amount of hot water sent to the radiators, conserves energy and saves you money.
Consider switching to LED bulbs, which could save you up to £8 a year and outlast traditional incandescent lights. Another budget-friendly option is fitting an energy-efficient shower head, which controls the water flow to minimise your usage during showers.
If you're shopping for a new appliance like a fridge, washing machine or tumble dryer, opt for one with an A+ rating or higher (A+++ being the highest) to ensure it's not only more energy efficient but also eco-friendly.
What to do if you're struggling to pay your billsFor some, merely reducing usage or making minor adjustments won't be enough to make their energy bills manageable. Some households may require additional assistance or support to cover their energy costs. If this is the case, get in touch with your energy supplier at the earliest opportunity.
Discussing it with your provider might seem daunting, but it's the most effective way to seek help. Your options might include setting up a monthly direct debit payment plan, switching to a different tariff - such as a social tariff, getting extra time to pay, taking payment breaks, or they might have grants, schemes or hardship funds available.
Energy suppliers are obliged to take certain measures before disconnecting your supply, so if you're upfront with them, they'll assist you in finding ways to pay.
If you find yourself in an immediate financial crisis, there are numerous organisations and charities ready to provide support, including Citizens Advice, MoneyHelper, National Energy Action, National Debtline and StepChange.
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