Search: Switch and save on energy costs
- Check which would be your best energy provider
- Energy saving tips for the home
British Gas recently announced price cuts on its standard tariff, proudly claiming this now made it the UK’s cheapest domestic power supplier.
Not to be outdone, E ON has now decided that as of the end of this month, it will be slashing its prices by 6%, saving the average customer £47 a year for those using the company for both gas and electricity.
Likewise, nPower will be cutting its prices by 7% from March 26, saving about £50 a year for its standard gas customers.
E.ON is also simplifying its bills so they are clearer and easier to understand. Graham Bartlett, Managing Director of E.ON’s Retail business, said: “We’ve been very aware of the effect of both the recession and the exceptionally cold winter on our customers, especially those most in need, so we are pleased to see the opportunity to now reduce prices.
“The fall in current wholesale prices is only part of the pricing story as our customers are using gas bought over a number of years at much higher prices than today.
“In addition, our customers have been telling us that their bills need to be clearer, better laid out and easier to understand. We’ve listened, and our new bills have all the relevant information up front so our customers can see exactly how much energy they’re using and hopefully where they can make savings.”
Don't look a gift horse...
All of this is good news. But in reality, the six or seven per cent cuts they are offering us in no way reflects the far bigger savings they are making from the recent big cuts in wholesale energy prices.
That the energy companies are prepared to keep the majority of the savings for themselves, should remind us that they’re not really doing us any favours.
They have all cut their bills by a similar amount in order to keep their market share of customers and we owe it to ourselves to keep switching suppliers and reduce our energy needs in order to keep these companies in check.
So what’s the best way of keeping our energy bills as low as possible?
Here we list what to do:
Pay online
Invariably, the cheapest tariffs are those online. You should also pay by direct debit as this too, should be the cheapest way of paying.
Switch
It might seem like a nuisance, but it’s vital to check regularly that your chosen supplier is offering the best deal. This is easy to do using online price comparison sites like MoneyExpert.com.
Given that there are hundreds of different tariffs available, if you haven’t checked for some time, it’s almost certain that there’s a cheaper tariff out there and that you might easily save yourself several hundred pounds a year by switching. Remember to check for “dual fuel” rates. These are often the cheapest as well as offering the convenience of having just one supplier (and bill) for your gas and electricity.
Don’t assume your bill is accurate
When you get your bill, make sure the meter readings correspond to what the meter says! You shouldn’t assume it will be correct. It might well be an estimated reading resulting in you paying too much. If there is a difference in readings, phone your supplier with the correct readings and they’ll send you a re-calculated bill.
Claim all allowances
Remember to claim for your Winter Fuel Payment if you’re 60 or over. Depending on your exact financial situation, you should get £250 a year if you are aged between 60 and 80, while those over 80 should get £400. You’ll need to move fast if you want to claim for last winter as all applications need to be in by March 30.
If you are struggling money-wise, regardless of how old you are, you should contact your supplier. All energy companies have to offer special “social tariffs” to their most vulnerable customers, which will be the cheapest available.
Another allowance currently available is to swap your old inefficient boiler for a new one under the Boiler Scrappage Scheme. If your current machine is G-rated, you are entitled to claim a £400 grant towards the cost of replacing it. If your boiler is more than 10 years old and has its pilot light permanently lit, then it will probably qualify. Don’t miss out on this opportunity as it’s not often we get £400 in order to help us save even more money in the future!
The same applies to having your home properly insulated. Whilst the Energy Savings Trust reckons proper loft insulation will save the average household £150 a year and cavity wall insulation will save a further £115, there’s a good chance you’ll qualify for a council grant to help with the cost. If you are over 70, you are entitled to have your home insulated for free. Check with your local council offices to see what help might be available.
