The price we pay for energy such as gas, electricity and petrol changes all the time as a result of movements in market prices. However, recently prices for all of these have been at or near record highs.
In the last 3 years the cost of gas has increased by 94% and electricity bills by more than 60%, according to Energywatch.
Energy bills obviously vary according to how much you use, which supplier you are with, and what tariff you are signed up to. However at the beginning of 2008, average bills for a medium user on a standard tariff were in the region of:
- £628 per year for Gas
- £403 per year for electricity
This means that the average household is now paying over £1,000 per year on gas and electricity bills, which blows a big hole in the household budget.
What Can I Do to Cut My Bills?
You can make some very big savings in the amount you spend on gas, electricity and petrol. There are two main ways you can do this:
1. Cut the amount you use by taking some of the measures recommended on this site. Click here to see the measures we recommend on our home page.
2. Switch gas or electricity suppliers to one that offers cheaper prices. By doing this you can save around £90 a year if you haven't switched suppliers before. Millions of householders have already switch suppliers, but about half of the UK's households have yet to switch. You can easily compare prices and sign up with a new supplier on-line in a matter of minutes through the following web-sites:
a. USwitch
b. Moneysupermarket.com
3. Sign up for an on-line, direct debit tariff with your energy suppliers. Most utilities offer lower tariffs if you pay by direct debit, and receive your statements by e-mail rather than in the post. This is because the utilities incur lower administration charges. The savings can be very high over their standard charges. At the start of 2008, savings were between £140 and £180 per year for a dual fuel account.
