With winter price rises, followed by the UK Government reducing some of the levies on household energy bills, many consumers will be feeling confused about what all this means, and more importantly how it will affect what they are paying.
The cold reality is that even when the announced price cuts come into effect our energy bills will still have soared by £890 in a decade.
This staggering increase is putting people under pressure, with many now forced to go to extreme lengths to keep their bills in check.
Worryingly, more than eight in 10 households will be rationing their energy use this winter, while evidence suggests that even as the temperature plummets some will be turning off their heating because they fear running-up a bill they simply can’t afford.
Rather than going cold this winter, consumers should take action now.
There are two key steps to cutting energy bills – make sure you are paying the lowest price possible and make sure you are using as little as possible.
Shopping around for a competitive new tariff or deal will help with the first, while making homes more energy-efficient, by installing insulation for example, will help with the second.
Those who have never switched before are likely to be on their supplier’s old-fashioned and expensive standard tariff.
There are far cheaper options available and suppliers give discounts for managing accounts online and paying by monthly direct debit rather than by cash or cheque.
If households are happy to move to one of these tariffs then they could save up to £318 a year.
The best way to go about switching is by using an accredited, independent and impartial price comparison service which looks at all the tariffs available on the market.
Make sure you base your comparison on your actual annual energy usage in kWh as this is the most accurate method.
Also, be prepared to look at suppliers outside the traditional “Big Six” as they currently offer the most competitive plans on the market.
If you are really unsure, then most accredited comparison services offer a call service where advisers can help you to find a better deal over the phone.
This is particularly popular with those who have never previously switched and who just need that little extra support and confidence.
Ann Robinson is the director of consumer policy at uSwitch.com
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