Four ways to keep your energy bills down

Energy prices are going up again in October, by about £35 a year for a typical household.

It is the cap on a standard variable bill that is going up. That includes the daily standing charge plus the price per unit of energy, so if you use a lot of gas and electricity, your annual bill could go up by more than that.

So what can you do to keep a check on rising bills?

The energy regulator Ofgem is advising people to look at fixing – so that the price you are charged per unit of gas or electricity does not change every three months, although the total bill will still vary of course, depending on how much energy you use.

There are fixed deals currently available that are around 15% cheaper than the current variable rate that you will be paying if you have not fixed (the rate that is limited by the regulator’s cap), according to Gary Caffell, from consumer website Money Saving Expert.

When the cap goes up on 1 October, that difference rises to 17%, so switching to a fixed deal will definitely save you money over the next few months, he says.

After that it is a bit harder to predict what the variable rate will be, but fixing could save the typical household £250 over the next year, Mr Caffell adds.

Before you fix, Money Saving Expert advises you look at all the deals available, not just what your own supplier is offering.

But consumer group Which? also recommends keeping an eye on any exit fees when picking a fixed deal. If variable prices fall below your fixed rate and you want to get out of it before the end of your agreement period, you may have to pay a hefty sum.

If you are already on a fixed deal that is higher than the current price cap then check whether you face an exit fee, and whether it is worth paying it to save on your bill.

The regulator Ofgem says around eight million people still pay their bill as it comes in each month. For some that’s because they do not want their supplier to estimate their usage in case they are overcharged.

But if you have a smart meter or submit a meter reading regularly that will not be a problem, says Mr Caffell.

And you will usually – although not always – need to switch to direct debit if you want to take advantage of the fixed deals on offer.

Customers on prepayment schemes – usually people on low incomes struggling to pay bills – used to pay a higher rate than others, but now they pay 3% less than the capped variable rate.

There are also a range of pricing schemes offering cheaper off-peak electricity, which suit “savvy” people who are able to manage their use, for example if they are charging an electric car overnight. But note that peak time prices are likely to be higher on those schemes, says Mr Caffell.

If you decide to stick with your variable rate, it might be worth putting a reminder in your calendar to submit a meter reading before the rate goes up on 1 October.

There are a range of ways people on low incomes can access support.

This winter anyone on means-tested benefits will get £150 off their electricity bill.

Your supplier will apply the discount automatically unless you are in Scotland, where you will need to contact your energy company to ask for the help.

Some people will also be eligible for a Cold Weather Payment and most pensioners will receive the winter fuel payment this winter, after political pressure forced the government to U-turn on its plan to restrict it to the poorest pensioners.

Beyond that, most energy suppliers offer hardship grants for people struggling to pay their bills and the government’s Fuel Direct Scheme can help you repay energy debt.

You can get more advice from Ofgem, Citizens Advice, or your own energy supplier.

People on low incomes may also be eligible for grants to help with insulating their homes.

The government has a scheme offering £7,500 for people switching to air or groundsource heatpumps.

But if you are hunting round for grants do watch out for scams pretending to be official money-off schemes.

Once the temperature outside starts to fall again, it is important to stay warm, especially for the very young, old, and those with health conditions or reduced mobility.

But there are plenty of ways you can keep bills lower without letting the temperature in your home fall below the recommended 18C minimum.

You may already have hung thicker curtains and blocked the drafts over the last couple of winters, but do not forget to switch off radiators in rooms you are not using and wrap up.

Money Saving Expert advises to “heat the human not the home”.

Turning down the flow rate on a combi boiler can save you money as often the water is being heated higher than it needs to be.

Batch cooking and using an air fryer or microwave rather than heating up the oven for a small item can save energy.

Take shorter showers and wash clothes at 30C rather than 40C. Dry clothes outdoors if you can, rather than using a tumble dryer, or hang clothes indoors but ventilate well or use a dehumidifier to avoid damp.

If you are thinking about moving home, or undertaking renovations, it is worth thinking through how to reduce bills. When it comes to white goods, look for energy-efficient appliances.