With average energy bills set to jump more than £200 this Summer, we look at the simple ways you can cut your bills.
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Energy Price Cap to soar 13%
Households will be hit with a sharp rise to their energy bills this Summer.
Ofgem, the regulator for the energy sector, has confirmed that the Energy Price Cap will rise 13% from July.
The price cap represents how much the typical household can expect to pay for their energy, and means average annual energy will jump by a staggering £221 to £1,862 when the increase kicks in.
The move will put even more pressure on household budgets that are already creaking.
Ofgem analysis released earlier this year showed that, between 2023 and 2025, average gas bill arrears jumped 44% while electricity arrears rose 35%.
It added that overall household energy debt stood at a staggering £4.5 billion, having jumped 18% in just one year.
Why are energy bills rising?
The increase to household energy bills is largely due to the Iran war, as tightened oil supply has led to an increase in wholesale gas prices.
"Today’s price change reflects continued volatility in global energy markets," said Tim Jarvis, Ofgem CEO.
"This means higher wholesale gas prices, driven by ongoing conflict in the Middle East, is impacting the price we pay for energy."
Fight back against rising prices
With bills looking set to rise sharply, taking measures to cut our energy use, and therefore our bills, makes a lot of sense.
In this guide, we'll run through the various things you can try. Some will be free, while others will require you to spend money up front to benefit.
Lock into a fixed deal and pay the right way
One of the fastest and easiest ways to reduce your energy costs is to switch to a cheaper tariff.
Many suppliers now offer fixed-rate deals that undercut the Energy Price Cap, which is set by Ofgem and what the majority of people will be sitting on.
If you’ve not already locked into one, take a few minutes to do so now (this link will take you through to the Uswitch energy comparison page).
Pay by Direct Debit
It’s also a good idea to pay by direct debit as this should help you to save cash. In fact, paying by Direct Debit could save you between £70 and £90 a year.
It’s easy to set up and means you’ll always pay your bills on time.
Just be aware that energy companies particularly like fixed monthly direct debit payments, as they can be sure you won't default, and they earn interest on any overpayments.
Pay for dual fuel
Next, it’s worth checking to see whether paying for dual fuel – in other words, using the same company for your gas and electricity – works out cheaper.
This isn't always the case, but usually is.
Check your bills
When you receive your bill, make sure it’s showing an actual reading rather than an estimated one (again this is only relevant to households without a smart meter).
It’s far too easy to assume the reading is accurate, but in fact, you may be paying far too much. If the reading is estimated, take the time – it’ll only take a few minutes – to check your meter and submit the reading to your supplier.
Your supplier should then recalculate your bill and re-issue it.
Alternatively, you could get a smart meter installed (although these aren't particularly popular with regular loveMONEY readers).
Shop around for a cheaper energy deal now (opens in new page)
Claim what you're entitled to
Once we head into the Winter months, Cold Weather Payments are available for those who receive benefits such as Pension Credit, Income Support, income-related Jobseekers' Allowance and income-related Employment and Support Allowance.
With this, you could get £25 for each seven-day period of very cold weather between 1 November and 31 March.
What's more, if you’re struggling financially, all energy providers must offer a Warm Home discount to help their most vulnerable customers.
This is a discount of £150 off your electricity bill.
And you are struggling to pay your bills, make sure you talk to your provider and see if you can be moved to a cheaper tariff.
Search for a cheaper energy deal: see if you could save
Cut your energy usage
There are loads of simple things you can do to cut your energy spend, such as:
- Wash your clothes in cold water;
- Defrost your freezer regularly and don't overfill your fridge (this increases efficiency);
- Vacuum the dust off your radiator coils;
- Turn your microwave off at the wall (simply powering the clock can use more energy than heating your food!);
- Turn off the hob or oven a few minutes before the food is fully cooked (there should be sufficient heat for the food to continue cooking). Just make sure it is definitely cooked before eating it!;
- Match the saucepan size to the hob ring (otherwise, you're paying to heat the air);
- Turn your hot water thermostat down to around 60 degrees;
- Use energy-saving light bulbs;
- Don’t leave electrical appliances on standby.
Read: I tried 4 offbeat ways to cut my energy usage
Get a new boiler (if it's 10+ years old)
An old boiler could be costing you in two ways.
First, if it's become unreliable then you'll be wasting money on regular engineer callouts (old boiler? consider boiler cover).
Second, boilers tend to become more inefficient the older they get, and so will drive up energy bills over time.
Heating specialist Heatinghub.co.uk say you're unlikely to save an awful lot if you replace a boiler that's less than 10 years old, but getting rid of a 20-year-plus boiler would save you a fortune.
It keeps the figures broad as a lot obviously depends on your specific home and boiler model, but it says you can generally expect to save between 14% and 34% on your energy bill.
That’s a lot of money when bills are so high.
To limit the cost of getting a new boiler, read our guide: Save money on your new boiler or get free quotes to see how much one will cost by entering your details below.
If you can't afford the outlay but want to avoid a big bill if your boiler packs in, you can get boiler cover from £8 a month from the likes of Your Repair or 24/7 Rescue.