Energy Bills & How To Cut Them
- BetterAskAdam.com
- Nov 23, 2024
- 5 min read
Updated: Nov 25, 2024
The price most households pay for gas and electricity will rise by 1% on average from 1 January 2025 as energy regulator Ofgem has announced the latest Energy Price Cap rates...but there does appear to be a way of cutting the amounbt you pay rather than having to pay the increased rates....
What It Costs
New average direct debit rates
GAS: Standing charge 31.7p/day ...Unit rate 6.3 pence per kwH
ELECTRICITY: Standing charge 61p/day... Unit rate 24.9 pence per kwH
(though the charges vary depending on where you live and how you pay)
Q: So what on earth is a KwH?
A: It’s a unit of measurement. 1 kilowatt hour is the amount of energy you’d use if you kept a 1,000 watt appliance running for an hour.
But different appliances use different amounts of energy.
Here are some (estimated!) examples of what might use 1 kWh:
Running an electric shower (10,000 watts) for 6 minutes
Keeping an immersion heater (3,000 watts) on for 20 minutes
Cooking in an oven (2,000 watts) for 30 minutes
Using an iron (1,000 watts) for 60 minutes
Running a dishwasher (1,000-1,500 watts) for less than an hour
Keeping a fridge-freezer (200-400 watts) on for about three hours
Watching a 42” LED TV (80 watts) for 12 and a half hours
Keeping an electric blanket (130-200 watts) on all night
Using a laptop (20-50 watts) all day
Keeping a broadband router (7-10 watts) on for five days
The prediction (although it could be wrong) are that prices will rise again in April.
Q: So How Do You Beat The Price Cap?
A: Rather oddly, there does appear to be a simple way round paying the price rise. Even more importantly, not only can you avoid the future price rise but you can cut the bill you are currently paying. You do that by moving to one of the cheapest fixed tariffs.
The best fixed rates currently charge about 5% less than the current price cap.
Q: What are some of the cheapest fixed rate deals?
Eon’s Next Fixed 12m v35 one-year fix is open to new and existing dual-fuel or electricity-only Direct Debit customers. It is about 6.8% less than the current October Price Cap (including £20 dual-fuel cash back through MSE's Cheap Energy Club). Be aware it has a £50/fuel early-exit fees.
Outfox the Market’s 12-month Fix'd Dual Nov24 v2.0 is 6.5% less than the October Price Cap, although this is only available to dual-fuel customers and you must pay by Direct Debit. It has £50 dual-fuel exit fees.
Also look out for fixed deals from British Gas, Octopus Energy, and Ovo.
When checking the fixed deals - compare the unit and standing charges to the cap and remember to check what the exit charges are, in case you change your mind. Also check how long you are tied to the deal for.
Q: What does all this mean for what people pay on average?
A: From 1st January the new price cap will mean that on average for gas and electricity you will pay the following:
If you pay by monthly Direct Debit, he average cost will rise to £1,738 a year
If you prepay for your energy, the average cost will rise to £1,690 a year.
If you pay on receipt of a bill, the average cost will rise to £1,851 a year.
Remember - this is the average price based on average energy use. The price cap limits the maximum cost per unit of energy - the more energy you use, the more you will pay. There is no cap on the maximum total energy bill.
Q: How else do you cut your energy bill?
1: Don't leave things in standby mode.
The Energy Savings Trust estimates that you could save around £65 a year by turning off devices you’re not using. Switching things off at the plug could not only save power and reduce your carbon footprint.
Some of the biggest energy wasters in your kitchen include the microwave (which uses about 3 watts when not in use) and the coffee maker (0.5 watts). Anything with an LED light or screen that stays on permanently will use up more power.
If you want to make sure all your devices are switched off – not on standby – then turning them off at the plug is the best bet.
2: The old adage is that what gets measured gets managed.
Smart meters are clever tools, because they tell you exactly how much power you’re using. They measure your energy use, and share this information on a device in the home. If you and your family see what is happening, you are more likely to be careful with the energy use.
3: Wash your clothes at a lower temperature Doing your laundry at 30ºC (rather than 40ºC) cuts the cost by 38%, according to Which? Wash bigger loads less often Over-washing can cause fading, shrinkage and mis-shaping, as well as cost you more in electricity.
4: Stopping heat from escaping through gaps around doors and windows could save you around £35 a year, according to the Energy Saving Trust. Use draughtproofing strips around the frame. Brush strips work better for sash windows.
5: Keep yourself warm rather than the home. Water bottles are amazing things. But here is a thing you may never have known. The general recommendation is to replace your hot water bottle every two to three years. According to an Australian study on hot water bottle safety, out of over 100 hospital admissions where burns from a hot water bottle were listed as the cause, over 80% were because the bottle had burst, split, or leaked.
Every hot water bottle sold in the UK should have a 'flower wheel' on the funnel somewhere, which shows the date it was made...
It is a wierd thing you probably have never noticed...but check.
The number in the centre of the wheel shows you what year it was made. For example, if it says 18, it was made in 2018. There are also 12 segments around the centre of the wheel. Usually, the number of these segments that have dots in show you what month it was made. So, if there are dots in six sections, the bottle was made in June.
6: Lowering your combi boiler's flow temperature is quick and can lower your bills straight away, according to Which? Condensing combi boilers tend to have heating flow temperatures set to 75-80°C, but many homes with one can be suitably warmed at 50-70°C.
You could save 6-8% on your gas bills by lowering a combi boiler's radiator flow to 50%, according to the Heating and Hotwater Industry Council (HHIC) in 2022.
If your boiler was installed after April 2005, it will be a condensing boiler.
Lowering it means your boiler uses less gas and runs more efficiently. So you'll save money and your home will still be warm. The HHIC recommends that you adapt your boiler settings with the advice of a boiler engineer.
Do contact me on BlueSky and X @adamshawbiz with any questions or comments
