With energy bills rising, it’s important to know how to keep costs low. Ofgem has announced that the energy price cap will increase by £149 to £1,717 a year for the average household starting in October 2024. This means your bills could go up by £12 a month.
To help you manage these higher costs, here are some straightforward steps you can take.
Switch Energy Suppliers to Save Money
Switching energy suppliers can help lower your bills. Ofgem’s chief executive, Jonathan Brearley, advises everyone to shop around for better deals.
Use comparison websites like the Money Saving Expert Cheap Energy Club to find the best prices.
You’ll need to enter your address, current supplier, and energy usage to see where you can save the most.
Consider Fixing Your Energy Tariff
Fixing your energy tariff now can protect you from future price hikes. A fixed tariff locks in the price you pay per unit of energy for a set period, meaning your bill won’t go up even if the price cap does.
Martin Lewis from Money Saving Expert recommends looking at current fixed-rate deals, which are around 7% cheaper than the new October price cap.
However, check for exit fees and think about how long the fixed rate lasts before you decide.
Cut Down on Energy Use
Using less energy is the easiest way to lower your bills.
Simple things like turning off lights when you leave a room, using energy-efficient appliances, and setting your thermostat a degree lower can all make a big difference.
Installing a smart meter lets you see exactly how much energy you’re using and helps you find ways to cut back.
Apply for Government Support
If you qualify, apply for government grants like ECO4 Scheme and other support schemes. ECO4 offers free or subsidised energy efficiency improvements, such as insulation and heating upgrades, which can significantly reduce your energy bills.
Additionally, if you receive pension credit, you may still be eligible for winter fuel payments, which are now means-tested. These grants and benefits can make a big difference in managing your energy costs, especially as prices rise.
Look for Recommended Tariffs
Some energy deals offer lower prices on the energy you use. Money Saving Expert recommends deals like the E.On Next Pledge v5 and EDF Ensure.
If you’re comfortable with a bit more risk, consider variable rate tariffs like Octopus Agile, where the price can change daily or even half-hourly.
Plan Ahead for Future Costs
Energy bills could go up again in January 2025. Analysts predict another rise, so it’s important to stay informed.
Regularly review your energy plan and be ready to switch or fix your tariff to avoid higher costs.
Manage Your Energy Debts
If you’re struggling to pay your energy bills, don’t ignore the problem.
Contact your energy supplier to discuss your options. Many suppliers can offer payment plans to help spread the cost.
Get Ready for Winter
Winter usually means higher energy bills. With reduced winter fuel payments for some pensioners, it’s important to prepare now.
Make sure your home is well-insulated and use draught excluders to keep the heat in. These steps can help you use less energy and keep your bills lower.
By following these tips, you can better manage your energy costs and reduce the impact of rising prices. Being proactive and staying informed will help you keep your bills as low as possible.
