What type of energy user are you?
It's really cold outside! If you're worried about being hit with high heating bills this winter, here's how you could save £355 by understanding your energy usage and switching to a cheaper tariff today.
As the colder weather kicks in and torrential rain washes away the last of the Indian summer, many of us will be spending more time hibernating indoors, cuddling up to the radiator to keep warm.
If you're concerned about the cost of heating your home this winter, it's vital you take action now to avoid being hit with expensive energy bills in January.
In this article I'll explain how you can keep toasty warm this winter for less.
Different deals for different users
First of all, when it comes to picking the perfect energy plan for you, be aware that one size does not fit all.
Depending on how much gas and electricity you use, you will be categorised as either a high, medium or low energy user.
It is important to remember that the cheapest tariff for a high user may not be the cheapest tariff for a low user.
For example, if you live in a one bedroom flat, you will use far less energy than a family in a five bedroom house. However, do bear in mind that if you turn your thermostat up to 40 degrees and leave the heating on all day, regardless of how small your house is, you are likely to be considered a high user!
Three top tariffs
Here's a quick guide to the cheapest tariffs on the market right now for these three main types of energy user. Check out the savings you could make...
|
Type of energy user |
Cheapest Tariff |
Average annual cost |
Average annual saving* |
Notes |
|
High energy user. (5+ bedroom house.) |
OVO New Energy 1 |
£1,250 |
£355 |
Prices fixed for 12 months from sign up. £60 early exit fee. |
|
Medium energy user. (2-4 bedroom house.) |
OVO New Energy 1 |
£921 |
£338 |
Prices fixed for 12 months from sign up. £60 early exit fee. |
|
Low energy user. (1-2 bedroom house.) |
Scottish Power Online Energy Saver 7 |
£499 |
£197 |
3% discount against Scottish Power standard price until December 2010 £50 early exit fee. |
BeatThatQuote.com date correct as 17/11/09
1 OVO Energy is not available in the Scottish Hydro region (Northern Scotland).
Both the OVO New Energy plan and the Scottish Power Online Energy Saver 7 are online tariffs. This means the account must be managed via the internet and you will not receive any paper bills.
Right now, it's often the case that the cheapest energy tariffs available are for online customers only. Therefore if you're willing to operate you account online and supply your energy company with meter readings, you could save a significant sum of money.
In the far right hand column of the table above are some of the details you should bear in mind when choosing a tariff. Make sure you always read the small print carefully before signing on the dotted line.
Switch to save
In today's privatised market, energy companies compete for new customers by undercutting one another's prices. This means if you always stick with the same supplier, you're likely to lose out on the most competitively priced deals.
To bag yourself the best deal, it's important you regularly shop around and compare a range of tariffs. Using an online price comparison service is an easy way to track down the best deal in no time at all.
When you run your own individual comparison all you have to do is enter your postcode, answer seven simple questions about your current provider and up pops a list of the tariffs available to you (conveniently organised in price order).
You can help make sure the comparison is as accurate as possible by entering your annual kWh usage (this is the total kWh consumption amounts from your last 4 quarterly bills).
To ensure you stay on a competitive deal it's a good idea to run a comparison every twelve months.
There is no time to lose!
Although switching suppliers will only take you a few minutes, it will take 4-6 weeks for your new tariff to come into effect.
This means if you want to benefit from a cheaper tariff over the winter months you need to switch NOW.
What's more, if you're waiting to switch suppliers in the hope that energy companies will drop their prices further, you may well be wasting your time.
According to energy regulator Ofgem, challenges to Britain's gas and electricity supplies and our increasing dependence on gas imports means energy prices are more likely to go up than down over the next few years.
Get help with your heating bills
Finally, be aware that there is financial support available during the winter months for people who are struggling to pay their heating bills. Make sure you get what you're entitled to.
If you're over 60 you're likely to qualify for Winter Fuel Payments, and depending on your age and circumstances you could receive up to £400 in benefits. Check out direct.gov.uk to find out if you're eligible and how to apply. Remember, the quicker you place your claim, the sooner you will receive your money.
If you're getting Pension Credit or income-based Jobseeker's Allowance, you may also be entitled to a Cold Weather Payment. Again you can visit direct.gov.uk for more information.
It's also a good idea to find out if you are eligible for grants to help you improve the energy efficiency of your home. You can check out the Energy Saving Trust website for informative advice and useful energy saving tips.
You can learn more ways to cut your energy costs in my article 'Six ways to slash your energy bills'.
High User
*Saving based on comparing the cost of a high user consuming 4,950kWh electricity and 28,000kWh gas, on the standard plan with British Gas for Gas and their incumbent supplier for electricity, paying on receipt of bill, with a customer on OVO Energys New Energy dual fuel plan paying by fixed monthly Direct Debit. Bill sizes averaged across all regions.
Medium User
*Saving based on comparing the cost of a medium user consuming 3,300kWh electricity and 20,500kWh gas, on the standard plan with British Gas for Gas and their incumbent supplier for electricity, paying on receipt of bill, with a customer on OVO Energys New Energy dual fuel plan paying by fixed monthly Direct Debit. Bill sizes averaged across all regions.
Low User
*Saving based on comparing the cost of a low user consuming 1,650kWh electricity and 10,000kWh gas, on the standard plan with British Gas for Gas and their incumbent supplier for electricity, paying on receipt of bill, with a customer on Scottish Power's Energy Saver 7 dual fuel plan paying by fixed monthly Direct Debit. Bill sizes averaged across all regions.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
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