Five ways to cut your energy bills

http://www.guardian.co.uk/money/2012/oct/12/five-ways-cut-energy-bills

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The news that British Gas is to increase energy prices by 6% from 16 November will be a blow for millions of householders who have already seen prices rise by up to 18% since summer 2011.

But British Gas customers are not alone. SSE has already announced a price rise of 9%, which starts on Monday, and the other four major energy supliers – Scottish Power, npower, EDF and E.ON – are widely expected to follow suit.

However, there are ways you can keep costs down, some of which could be effective enough to mitigate the latest price rise altogether.

Up your insulation for free … but be quick

We all pay a levy on our energy bills for a government-backed scheme called Cert which aims to cut carbon emissions. The good news is that Cert means energy suppliers must offer free or discounted loft and cavity wall insulation to some or all of their customers.

The energy companies must only meet their obligations under Cert until the end of 2012 and some of them have already closed applications. SSE is one of these, as is Scottish Power. Others such as EDF are offering it to those in receipt of child tax credits where their annual household income is less than £16,190, or to anyone claiming pension credit. To qualify for the EDF offer you don't have to be an EDF customer, but you do have to apply before the end of October.

For everyone else, British Gas is offering free insulation to all households – not just those on low incomes – who apply before the end of November. There are, of course, some terms and conditions: the insulation is only available if you have less than 60mm of loft insulation already in place (but that is quite possible if your home was insulated a while ago), and the insulation has to cover at least a third of your loft or wall space. There is also an upper limit of 120 metres squared, which is roughly the size of a four-bed detached home.

In all cases work has to be carried out by the end of the year under Cert rules.

Potential saving Up to £175 a year (for a gas-heated three-bed semi).

Swallow the cost and change your boiler

Boilers account for about 60% of your total energy spend in a year, according to the Energy Saving Trust, so an efficient one makes a big difference.

The major downside, of course, is it can cost a typical £2,300 to have one installed, but if your boiler is ancient or you are forever paying to get it fixed now could be the time to replace it with an A-rated one. The Energy Saving Trust has a list of recommended boilers and can help with finding an installer.

People in Scotland can take advantage of the Scottish boiler scrappage scheme, which entitles them to a £400 voucher towards a new boiler. A similar scheme ran in England and Wales but is now closed.

Potential saving £300 a year (if you switch from a G-rated to an A-rated boiler).

Switch suppliers and look outside the mainstream

Although people are often loathe to switch suppliers, fearing hassle and little benefit, you could save hundreds of pounds if you are someone who has never switched and are on your supplier's most expensive tariff paying by the most expensive method.

It is also worth looking beyond the mainstream suppliers. According to TheEnergyShop.com, three of the five cheapest tariffs come from two of the smallest suppliers, First Utility and Ovo Energy.

First Utility's iSave v12 variable costs the typical household £1,054 a year. For certainty that prices will not move for a year, a fixed rate is a good option. One of the cheapest is Ovo Energy's New Energy Fix tariff at £1,088 a year, though this is not available in Scotland.

Co-operative Energy, a newcomer to the market, has announced it is committing to freezing prices until at least April 2013. Its average standard tariff is £1,166. This is the same price for customers, regardless of the mthod used to pay their bills.

Potential saving £300 a year (if you move from the most expensive tariff in the country to the cheapest).

Manage your bills better

Take regular meter readings – if your gas and electricity meters aren't read regularly, bills based on estimated readings mean you could end up paying for much more than you actually use.

Also consider changing your method of payment, as you pay more for using cash or cheque each month. Switch to monthly direct debit and you could save a typical 10%. However, you need to keep an eye on how much your supplier is debiting compared to your actual bills. You can end up vastly in credit and your supplier won't pay you back unless you ask. If a credit has accumulated and you request the money back, suppliers must refund it unless they have a very good reason not to.

Another advantage of paying by direct debit is you can often choose the date of payment, so you can arrange it to coincide with pay day.

Potential saving Up to £100 a year.

Change your approach to energy consumption

Turn your heating and hot water thermostats down. Reducing your room temperature by 1°C could cut your heating bills by up to 10%, and typically saves about £60 a year, according to the Energy Saving Trust. It says your hot water cylinder thermostat should be set at 60°C. Close your curtains at dusk to stop heat escaping through the windows and check for draughts around windows and doors. If you are home alone in the evening and only using one room, keep your gas central heating turned off and pile on the layers or get under a blanket.

You could also consider some of these tips from one of our readers who says she has cut her bills to £100 a year.

Potential saving Up to £280 a year if you carry out all the measures recommended by the Energy Saving Trust.