The political battle over energy bills intensified after David Cameron met with the main energy
providers in the UK to discuss ways that households could save money on fuel this
winter.
But consumer groups say that the plans discussed, such as
setting up a new government website with advice on the cheapest tariffs and
clearer bills, will add little to the existing options.
Since 2004 the average annual bill for a duel-fuel energy
customer has risen by 117 per cent, to £1,293.
Providers say that they are simply passing on the
increase in wholesale energy prices, which were pushed up this year after
unrest in the Middle East and the Fukushima nuclear accident in Japan.
Five of the largest energy companies in the UK: SSE,
Scottish Power, E.ON, npower and British Gas have promised to hold prices
steady until next year. In the meantime, there are a number of ways that
households can act now to save money on gas and electricity bills.
● Switch tariff and pay by direct debit – save £350
The government has warned that consumers are confused by
the sheer scale of tariffs available and are not given the correct information
by providers about the cheapest deals available.
Scottish Power, for example, has the most expensive
standard plan on the market at the moment. Its dual-fuel tariff, which
consumers pay on receipt of the bill, costs on average £1,391 a year. If
customers switched to the same company’s Online Energy Saver 16 plan, an
online-only offer, they would pay £1,045 – saving themselves £346. (These
figures are based on a user consuming 3,300 kWh electricity and 16,500 kWh gas
each year).
Despite the size of savings on offer, Ofgem says that
only 15 per cent of households switched their gas supplier last year, and only
a fraction more changed their electricity provider.
Consumer groups say this may be down to the complexity of
tariffs, rather than inertia.
And providers don’t always make it easy to move. After a
provider announces a price increase, consumers have just 30 days to switch
their supplier. If they want to move after this, they may find themselves
slapped with a £50 exit fee.
● Insulate your home – save between £175-£300
Installing insulation to stop heat escaping through the
roof costs between £50 and £350 and could save the average non-insulated
three-bedroom semi-detached house £175 a year, according to the Energy Saving
Trust.
Even if a house already has insulation of 100mm
thickness, topping it up to the recommended 270mm could save an extra £25 each
year.
Homes built before 1920 may find they have a gap between
their inner and outer walls. Filling this could snip another £135 from annual
bills.
Some companies, such as British Gas, offer free loft and
cavity wall insulation, so check with your provider before you get a quote.
● Use an energy monitor – save £135
Energy monitors are cheap, wireless gadgets that check
how much energy you are using – they won’t make an automatic difference to your
bill but they can help households understand where they might be able to make a
saving.
The average monitor costs about £40 and some providers
such as E.ON and npower offer free monitors with certain tariffs, although these
are not always the cheapest deals available.
Energy monitors should not be confused with smart meters,
which send accurate energy use information to providers and are the gizmos that
the government wants all homes to have by 2020.
● Turn down the thermostat, switch boiler, install
glazing, replace lightbulbs – save between £50-£450
Making a series of changes to your home, not all of them
expensive, can dramatically cut the size of your fuel bill. Official government
figures say that reducing the temperature in rooms by 1C can cut heating bills
by 10 per cent, and turning off radiators in rooms that aren’t used can save another
£50 or so on average.
The EU has already banned incandescent lightbulbs in
favour of low-energy bulbs but opting for the most energy-efficient products on
the market can trim about £11 from the average bill, according to green
campaigners.
For a little more outlay homeowners can save even more.
Fitting energy-efficient glazing on windows should save the average home £165 a
year. The cost will differ according to the number of windows and their size
but will often start at about £3,000. Those thinking of replacing their old
boiler with a condensing boiler will spend £500 more but could save £300 each
year, although some users have reported problems with frozen pipes in winter.
● Install renewable energy – save between £70-£1,200
The unpopular hikes in energy bills this year threaten to
derail the government’s plan to spend £200m on renewable energy infrastructure,
which would also be passed on to customers. But for the moment, subsidies for
those who adopt green energy sources remain intact.
Households that install solar panels, wind turbines or
hydroelectricity systems are all eligible for the government’s feed-in tariff
scheme, whereby your energy supplier pays you for the electricity you generate.
A typical domestic solar electricity system with an
installation size of 2.9kWp could earn about £1,200 a year from the government,
in addition to any reduction in energy bills that the system generates.
The Department of Energy and Climate Change will be
reviewing feed-in tariffs before the end of 2011.
Urban Energy
Urban Energy are delighted that nearly half the
population would like to install renewable energy technologies; what
worries us is the lack of awareness surrounding it. To bridge the Green
Gap it’s essential we continue to educate consumers and break down some
of the myths surrounding the Green Deal, energy efficiency and
microgeneration.
Urban Energy has earned a reputation as the
south’s leading renewable energy specialist. This has been achieved by
ensuring that from the initial point of client contact we offer 1st
class customer service and care.
We only
install products that lead the way within the renewable energy industry
and that are renowned for their high quality and ecologically sound
production. This reflects our own high standards and quality assurance.
We
understand that introducing a renewable energy system to either your
home or business is an investment that lasts for many years. With our
in-house electrical and plumbing division it is our promise to you the
customer that your satisfaction and peace of mind throughout this period
is our number one priority.
For further information about Urban Energy products and services:
Call: 0800 232 1624
