Cut heating bills without feeling the draught

Householders feeling the squeeze will be alarmed by news that gas and electricity bills could rise by a further 40 per cent this year. This will push the average cost of heating for the UK's hard-working families up to almost £1,500 a year – a rise of nearly £500. This comes on top of sharp price rises since the start of this year.
The price of oil has doubled in 12 months while wholesale gas has climbed by 75 per cent this year, rises that have prompted all the major energy companies to bump up prices by an average 15 per cent. Consumers have been warned to brace themselves for price rises in August, with further increases expected later in the year.
1 OPT FOR A FIXED-RATE

Most of the big energy companies offer fixed- or capped-rate deals, where prices are guaranteed not to rise for at least a year (and often more). Historically, fixed-rate deals have rarely been the cheapest available, meaning customers have been paying a premium for peace of mind.

At present, fixed-rate gas and electricity bills average out at £1,036 a year. While the exact price will depend on where you live and the amount of energy you use, this compares surprisingly well with standard energy tariffs, which now charge an average of £1,048 a year – leaving you £12 worse off.
2 MOVE TO AN ONLINE TARIFF

Georgina Walsh, of EnergyWatch, the gas and electricity watchdog, says:"Customers don't have to move suppliers to save money, they can often cut bills simply by moving on to a cheaper tariff with their existing company."
3 TAKE SOME SIMPLE ENERGY-SAVING STEPS

You don't have to resort to turning your heating off completely and wearing an extra sweater to save money. Nor do families have to spend thousands to make their homes more energy efficient. The simplest step is to switch off all your electrical equipment rather than leaving it on standby.

According to the Energy Saving Trust, this could reduce your electricity bill by 8 per cent a year. And turning your thermostat down by 1C will cut heating bills by up to 10 per cent, saving the average customer £40 a year.

If you draught-proof your home, as well as fitting covers over letterboxes and keyholes, this should make you feel warmer, even with the thermostat turned down. Likewise, fitting a cover over the hot-water tank should cut £20 off your annual bill, according to British Gas. And make sure that next time you replace a light bulb it is with an energy-efficient one. Replacing all your bulbs will save you about £45 a year.

4 DO YOU QUALIFY FOR HEATING GRANTS?

Those on certain benefits (for example, pension credit) will be able to claim up to £4,000 to make their home warmer and more energy-efficient. These grants can pay for loft-insulation, installing central heating, a new boiler and wall insulation.

To check your eligibility for the government-funded initiative, known as Warm Front, go to www.warmfront.co.uk, or call the Energy Efficiency Advice Centre on 0800 512 012.

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