More winter blues on the way as power firms implement their 10% price hikes. Average bills for a couple will go up this winter by around £115 to £1,265 a year. Bills for larger households will increase from an average of £1,500 to £1,650. Four of the Big Six providers – British Gas, ScottishPower, Scottish and Southern Energy (SSE) and npower – have announced price rises, with Eon still to declare its hand. Only EDF has announced a freeze until March 1. British Gas, the UK’s biggest supplier, which doubled its half-year profits up to June to £585m, announced seven per cent price rises for the eight million customers on standard and variable tariffs, costing the average customer an extra £52 for gas and £28 for electricity a year.
Npower have increased their tarriffs by 5.1% for existing customers from 4th January 2011 with its social tariff for the most vulnerable customers to remain at it’s current rates until April 2011. The hikes are blamed on a 66 per cent rise in ¬wholesale gas prices since December. But the cost to suppliers – which is linked to that of crude oil – is still only HALF what it was two years ago. This should mean a price cut, not rise.
Here are some tips for dealing with the fuel rises which could save you £700 a year. A simple switching of providers could save you a whopping £277 a year so it’s worth looking into.
Get switching!
First and foremost – get switching! If you haven’t switched your energy supplier in a while, or even if you have, there’s a good chance there’s a cheaper tariff out there for you. Doing this could save you as much as £700! So what are you waiting for!
Pay the right way
If you want to get the best deal for your money, make sure you choose an online tariff as this is likely to work out cheaper than one that isn’t. Similarly, it’s a good idea to pay by direct debit, as again, this should help you to save the pennies. And it’s also worth checking to see whether paying for dual fuel – in other words, using the same company for your gas and electricity – works out cheaper.
Check your bills
When you receive your bill, make sure it’s showing an actual reading rather than an estimated one. It’s far too easy to simply 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. Get insulated!
It might sound obvious, but if you’ve got proper insulation in your home, you’ll keep more energy in and therefore save money on your bills. In fact, according to the Energy Saving Trust, loft insulation could save you around £150 a year, while cavity wall insulation could save you around £115 a year.
If you’re worried about how much this will set you back initially, it’s worth finding out whether you are eligible for a government or local authority grant. If you’re over 70, you can have your home insulated for free, and if you’re over 60, there’s also a good chance of getting financial help.
However, even if you don’t fall into these age categories, you may still find you’re entitled to some form of grant, so it’s worth checking to see whether you are eligible.
What’s more, if you’re on certain benefits, you may also be entitled to a package of insulation and heating improvements up to the value of £3,500. The scheme is known as Warm Front in England, Warm Homes in Northern Ireland, the Energy Assistance Package in Scotland and Home Energy
Efficiency Scheme in Wales. So make sure you check this out. Claim what you’re entitled to It’s also worth remembering that if you’re aged 60 or over, you may get a Winter Fuel Payment to help cover your heating costs. Exactly how much you receive will depend on your personal situation. But generally, if you’re aged 60 to 79, your household will receive £250, and if you’re 80 or over, your household will receive £400.
However, if you live in a care home and don’t get pension credit or income-based jobseeker’s allowance, you’ll receive £125 if you’re aged 60 to 79 and £200 if you’re over 80. If you need to make a claim for a payment for winter 2009/10, you need to return your claim form on or before 30 March 2010.
What’s more, if you’re struggling financially, all energy providers must offer social tariffs to help their most vulnerable customers. All social tariffs must be equal to the supplier’s cheapest deals. If 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. It is worth noting that the Work and Pensions Secretary Mr Duncan Smith is considering ways of limiting winter fuel allowances for older people, which last year were £250 per household, or £400 where at least one partner is 80 years old. Winter fuel allowances could cease to be paid to over-60s and instead targeted only at the worst-off pensioners in future.
Get a better boiler
Finally, if you have an old boiler, it’s worth thinking about switching to a more energy-efficient model. Under the government’s Boiler Scrappage Scheme, you can get £400 towards the cost of a new, more efficient boiler, providing your boiler is G rated. Boilers are graded from A to G, according to their energy efficiency, with G being the worst. G rated boilers are typically more than 10 years old, have a pilot light permanently on, and comprise a single combustion chamber. However, even if you don’t qualify for this, in the long run, investing in a new boiler is still likely to save you money. Figures from the Energy Saving Trust show that annual energy bill for the average detached home is £235 cheaper with an A-grade boiler.