Top tips for beating the winter energy price rise
Today's news that Scottish & Southern is to increase gas prices by 9.4% from 1 December could be an harbinger of imminent prices rises from all the major energy suppliers. Consumer Focus said today that history shows energy firms "adopt a pack mentality on pricing". If the big six energy companies increase prices across the board, how can consumers combat the effects and protect their wallets? USwitch.com says the cheapest plans on the market are the online, dual fuel, direct debit plans from First Utility (iSave v5 Dual Fuel) and Ovo (New Energy), priced at an annual £883 and £922 respectively. The cheapest comparison plans on offer from the big six are nPower's Sign Online 20 (£952) and E.On's Save Online V4 (£955). A spokesman from Energyhelpline highlights the EDF Online S@ver 7 plan, which costs £867 a year and includes a £100 cashback. The cheapest annual fixed-price plans are: First Utility's iSave Dual Fuel V5 (fixed for three months, working out at an annual £883); Ovo Energy's New Energy Fixed plan (£993.01 – though has a cancellation fee of £60 if you exit before 12 months); EDF's Annual Fix V4 (£1,009.45 – fixed until 31 September 2011, with an early termination fee of £50); and Atlantic's Fixed Price 3 (£1,015.78, with a £35 cancellation fee). EDF Energy also has a longer-term fixed product – the Fix Price 2015 – fixed until 30 June 2015, working out at an annual £1,221.84, but it has tapering cancellation fees depending on how soon you wish to exit. Among more generic advice for saving money on energy bills are the following tips: 1. Move to dual fuel – this means getting both your gas and electric from one supplier. Energy companies offer valuable discounts for doing this. 2. Pay by direct debit – suppliers also offer discounts to those customers who pay by monthly direct debit. Compared with an average household on a standard energy plan paying by cash or cheque, paying by direct debit will save you £98 a year. 3. Sign up to an online plan – these are consistently the most competitive plans in the market, currently offering an average saving of just over £200 compared with being on a standard plan. 4 Fix your energy prices – if it becomes clear that widespread rises are on the way then it may be worth looking at a fixed-price plan. However, these can come at a premium and can carry early exit penalties, so you should always think carefully before signing up. 5. Ask your current provider if you are on their cheapest deal. If not, ask to be switched. 6. Become energy efficient – reducing the amount of energy you use as well as paying less for what you do use can help you cut bills substantially. This means turning the thermostat down (a reduction in temperature of 1°C could save 10% on your annual heating bills); invest in cheap but effective roof insulation; heat only the rooms you use most often; close your curtains in the evenings to keep the heat in; and reduce draughts around doors. 7. Speak to your supplier about the help they can offer you in making your home more energy efficient – under the Carbon Emissions Reduction Target (CERT) scheme they all have a pot of money with which to help households and you may qualify. 8. Consider what other energy-sapping devices you have in the home. Don't leave electrical appliances on standby (a computer on "sleep" mode uses up to 75% of its energy); turn off lights and appliances when you go to bed; don't overfill your kettle; take showers rather than baths; wash clothes in your washing machine at a lower temperature; and change to energy-saving lightbulbs.
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