Reduce Energy Bills

Green house Finding out how to reduce energy bills is very important to many people. With utility prices at an all time high and struggling with cash in a recession it is worth looking at ways to reduce your energy bills.

There are many things you can do to reduce your bills including;

  • Renewable energy
  • Energy saving tips
  • Compare suppliers
  • Pay by Direct Debit
  • Check your meter reading, if your bill is estimated you may be paying more than you have used.
  • Switch to an online tariff - this normally gives you a discount

The average household spends £1000 on gas and electric each year (June 2008). This has now increased to £1400 with price increases.

Britain has one of the highest utility bills, compared to most countries. One of the reasons for high utility bills is that we can only store enough fuel to produce two weeks supply of energy, so we have to purchase fuel what ever the price. Some countries have the facilities to store their fuel for up to three months, so if the price increases they can wait for the price to fall again.

What is the easiest way to compare utility prices?

There are many utility price comparison sites in the internet. These sites will compare energy suppliers and give you information on savings, how much it will cost per year and type of energy. They will require some simple information including postcode, present supplier, how many bedrooms, how you pay your bills and the amount of gas and electricity used.

The information from the price comparison sites will let you know how much you could reduce your bills by, which energy supplier is the provider, the type of energy whether it is green energy or standard. With most of these comparison sites you can even switch online.

The price comparison sites will give you an option if you want capped rates, standard or green rates.

Reduce energy bills - Pay by direct debit

Most utility suppliers offer a payment by direct debit scheme. The advantages are that the rate is normally discounted so will reduce your bills and you know how much you are paying each month. It is worth checking that if you pay by direct debit that you are not paying to much or to little, but make sure you allow for different usage in summer and winter.

Why check your energy meter reading?

When you receive your utility bill it is worth checking your meter reading especially if the bill is estimated. If it is under estimated you may end up with a big bill when they do the reading. If they over estimate the energy bill, then you will be paying for an unnecessary high bill. Contact your energy supplier and request that they reduce the bills.

What is a capped or fixed rate?

With a capped tariff will know how much you will be paying for your bill for a set period of time, usually 2 - 3 years. Even if the energy price increases you will be on a fixed rate. In the long term this may reduce energy bills.

Capped rates are normally 10-15% more than present prices, but if the energy bills rise at the rate predicated, you many soon be saving money.

If you are interested in a capped energy bill, it is worth transferring as soon as possible. As the energy prices increase the capped rates will increase and the best offers will disappear.

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Did you know?

1 in 10 people in the UK are in fuel poverty and can not afford to keep warm in winter.

 
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