Why are energy bills going up and what can I do?
Energy bills are something most of us have to think about year-round, but they can become an even bigger worry as the colder months get closer. As temperatures fall, heating goes back on, lights are left on longer, and many households naturally use more energy. This year, the situation is especially significant, as another increase in bills is on the way.
Ofgem has announced it is raising its price cap to £1,723 per year for a typical dual-fuel household on October 1, up £60, or 4%, on current levels. How much you actually pay will still depend on how much energy you use.
The good news is that there are plenty of small things you can do around the house which could make a difference. Experts at Energy Saving Trust, Uswitch, and Octopus Energy have shared 12 simple changes you can make, many of which do not involve spending much money or making major improvements to your home. And if you were able to follow all 12, you could save an estimated £670 per year in Great Britain.
Making little changes around the house can make a big difference (Image: Getty)
1. Switch to a fixed energy deal and save £184
Energy bills are set to rise in October, with another hike looming in January, so now’s a great time to check you’re not paying more than you need to, says Sabrina Hoque, energy expert at Uswitch.com.
She told Express.co.uk: “The good news is there’s still time to shield yourself from these increases. There are currently 23 fixed energy deals on the market that beat the new October cap, with the cheapest offering a typical household around £184 in savings a year compared with standard rates.
“Locking in a fixed tariff means you’ll already be saving against the current price cap, and you know exactly what your rates will be, shielding your bills from any future rises for the duration of the tariff. Switching your energy tariff to a fixed deal is the single biggest saving you can make.”
Below are 10 cheapest fixed energy tariffs available at the time of writing, according to Uswitch.
Table: Current 10 cheapest fixed energy tariffs (Image: Uswitch)
2. Simple boiler changes can reduce bills by £65
One of the simplest things anyone with a boiler can do to cut heating costs is to turn down the flow temperature, an Octopus Energy spokesperson.
This refers to the temperature of the water the boiler sends to your radiators.
Octopus told Express.co.uk: “For a combi boiler, trying 55-60C could save you up to £65 a year, while still keeping your home nice and toasty. It’s a simple change worth trying before you turn the thermostat up.”
3. Turn the thermostat down by 1 degree and save £120
Turning your thermostat down by one degree can save more than £100 (Image: GETTY)
When it comes to switching the heating back on, turning your thermostat down by one degree can save more than £100, according to Energy Saving Trust.
A room thermostat prevents your central heating system from using more energy than necessary. It turns the heating on until the room reaches the temperature you’ve set. Once it reaches the set temperature, it turns the heating off until the temperature drops again.
Energy Saving Trust recommends setting your thermostat to the lowest comfortable temperature for your needs. For most people, this is between 18C and 21C.
It added: “If you can, turning down your thermostat from 22C to 21C can save £120 a year in GB and £80 in Northern Ireland on energy bills.”
4. Switch appliances off standby and save £45
Most of us probably have appliances sitting on standby around the house without giving them much thought.
But simply remembering to switch them off could save around £45 a year. Almost all electrical appliances can be turned off at the plug without causing problems, although you should check the instructions if you are unsure.
Some equipment, including certain satellite and digital TV recorders, may need to stay plugged in to record programmes, while fridges and freezers obviously need to remain switched on.
5. Avoid the tumble dryer and save £50
Tumble dryers are useful when you need clothes dried quickly, particularly when the weather isn’t great. But using yours less could save a surprising amount of money.
Energy Saving Trust says avoiding the tumble dryer and drying clothes outside in warmer weather or on a rack indoors could save around £50 a year.
6. Check your insulation at home
If you have a hot water cylinder at home, it is worth checking how well insulated it is.
Energy Saving Trust says anyone with a loose 25mm jacket could replace or top it up with a British Standard jacket, which is 80mm thick. Doing this could save around £45 a year by reducing heat loss.
Octopus also suggests checking your loft insulation. It said as much as 25% of heat is lost through the roof of an uninsulated home.
Octopus said: “If customers have an older property, they might have around 50mm depth of insulation, and more recent properties may only have 150mm – increasing the depth to around 250mm will help stop the heat from escaping. It’s essential to use an approved contractor and be mindful of ventilation – the roof will still need air flow.”
7. Don’t overfill the kettle and fit a tap aerator and save £30
Many of us probably put more water in the kettle than we actually need when making a cup of tea or coffee.
Avoiding overfilling it could save around £10 a year. You could save another £20 by fitting an aerator to your kitchen tap. This small device reduces the amount of water coming out without affecting how well the tap washes or rinses.
Together, the two changes could save around £30.
8. Easy washing machine changes can save £26 per year
There are also a couple of easy changes you can make when it comes to doing the washing.
Energy Saving Trust recommends washing your clothes at 30C rather than using a higher temperature.
Cutting your washing machine use by one load each week could also help. Together, the changes could save around £26 a year.
9. Fill the dishwasher before turning it on and save £10
If you have a dishwasher, try to avoid switching it on before it is properly filled. Waiting until you have a full load means you should not need to run the machine as often.
Energy Saving Trust says reducing dishwasher use by one cycle each week for a year could save around £10.
10. Swap one bath a week for a shower and save £10
Anyone who enjoys having a bath doesn’t need to give them up completely to make another small saving.
Simply swapping one bath each week for a four-minute shower could save around £10 a year. Again, the saving comes from reducing the amount of hot water you need to use.
11. Simple light bulb switch reduces energy usage by 80%
Energy Saving Trust says LED lightbulbs are by far the most energy-efficient. They’re just as powerful as halogen lights but use 80% less electricity.
LED bulbs have a significantly longer lifespan than halogen bulbs, lasting up to 20 times longer in many cases, so you might not need to replace them for many years.
12. Keep draughts out and save £85
Finally, as the weather gets colder, it is worth checking whether unwanted draughts are making it more difficult to keep your home warm. Blocking gaps around windows and doors where needed can reduce the amount of cold air getting inside.
A spokesperson from Octopus said: “Draught-proofing is one of the easiest ways to make the most of home heating as we head into colder months.
“It sounds simple, but stopping heat loss through a few quick DIY tricks makes a huge difference and can be done in both rented and private properties.”
They suggested households use thick curtains, draught excluders, and rugs to trap warmth where they need it.
They added: “Don’t forget things like letter boxes or unused chimneys that leak warm air.”
By draught-proofing their home, customers could save up to £85 a year, according to the Energy Saving Trust.
Not every household will be able to make all of these changes, and exactly how much you save will depend on your home and how you normally use energy.
What is Ofgem’s energy price cap?
The energy price cap sets a maximum price that suppliers can charge customers in England, Scotland and Wales for each unit of gas and electricity they use. It also sets a maximum daily standing charge – the cost of having your home connected to the grid.
The headline price cap figure provided by Ofgem indicates what a household using gas and electricity and paying by direct debit can expect to pay if their energy consumption is typical.
In July, Ofgem changed how it calculates the estimated energy use of a typical household. It now recognises that households are using less energy than before due to factors such as improved energy efficiency, warmer weather and higher prices.
It is important to note that the price cap does not limit a home’s total bills because people still pay for the amount of energy they use, so if that is above the average, they will pay more, and if it is below, they will pay less.
Energy is regulated separately in Northern Ireland.
What’s changing in October and how are the Government helping?
The price cap, taking effect from October 1, will rise by 4% for the three-month period to December 31. This takes energy price cap rates to a three-year high.
Customers will see a price increase of around 1% on their electricity bills, while gas bills are rising by 8%.
Ofgem said bills are going up largely because of higher wholesale gas prices as a result of the ongoing conflict in the Middle East, which has pushed up the cost of supplying energy in the UK.
The Government has said it will remove VAT from electricity bills from October 1 to March 31, 2027. Without this intervention, the headline price cap figure would have been around £45 higher for a typical household.
People will still pay 5% VAT for gas, meaning some households might not see the full impact of the VAT reduction on electricity in their bill.
Households that use more electricity, or use only electricity, will see a larger reduction in their bills. The discount is automatically applied by suppliers, including to customers currently on a fixed-rate tariff.
Prime Minister Andy Burnham said the VAT removal was planned “to give people that little bit of help”.
Greg Jackson, CEO and found of Octopus Energy, told Express: “The Government’s decision to take VAT off electricity and remove some of the levies from bills has helped soften the blow this winter, but bills are still too high.
“Britain remains far too exposed to volatile global gas prices. The wars in Ukraine and Iran have created an unprecedented double crisis, with gas prices more than doubling since the start of the year.
“We urgently need to reform the market, make better use of our wind, and let people benefit from cheaper prices when green energy is abundant.”
