How you could save hundreds on your energy bills

Published:

23 February 2010

Topic:

News,Gas & Electricity

While the snow fell this winter, the profits made by the Big Six energy companies leapt, but you have the power to save hundreds of pounds on your bills.

That means the Big Six - British Gas, E.ON, Scottish Power, Scottish & Southern Energy, EDF Energy and npower - are enjoying the highest profit levels in five years.

According to Ofgem, the average net profit made from every dual fuel customer is £105 a year - up from £75 in November, although it's fair to point out that these figures are disputed by the industry.

British Gas has cut bills for standard customers, reducing its gas prices by 7% and saving around 8million homes £56 a year. However, the other five energy giants haven't followed suit just yet.

How to break the back of bills

Whether you're struggling to manage your gas and electricity bills, or just want to save some cash - there's one simple way to bring down your bills.

People using a standard dual fuel tariff are wasting hundreds of pounds a year by not switching to a cheaper deal.

Just now, customers paying quarterly for their provider's standard tariff are billed an average of £1,2253.29 a year.

Yet the average bill for an online tariff, paid for monthly, is just £920.27 a year - that's £305.02 less, almost 25% cheaper.

The cheapest provider right now is British Gas. Its WebSaver 6 product has an average bill of just £899.04, but the best deal for you depends on how much energy you use and your region. Compare gas and electricity providers to find the cheapest tariff for your household.

Reduce what you use

One great way to cut your energy bills and help the planet is to use less energy in your home.

No one should be worried about turning on the heating when it's cold but there are simple habit changes that can save money. Read our article 'How to put the freeze on energy bills' for some tips.

Bringing down the bills

Scott Byrom, moneysupermarket.com's utilities expert, said: "Today's headlines are all about how much money the energy companies are making, but millions of customers have the power to cut their bills.
 
"By moving to an online deal and paying by monthly direct debit, you could save literally hundreds of pounds."

Related Links

• Read our article ‘Price war hope as British Gas cuts bills’
• Read our article ‘How to put the freeze on energy bills’
• Compare tariffs from UK gas and electricity providers

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