Monday 24 October 2011

Five Ways to Cut Energy Bills


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

No comments:

Post a Comment