From the 1st April 2021, roughly 15 million British households could be affected by the energy price rise due to Ofgem lifting the price cap on standard tariffs.
The price cap will increase by £96 to £1,138 for 11 million customers on a standard dual-fuel energy tariff and by £87 to £1,156 for 4 million customers on prepayment meters. This decision was made to allow energy companies to recoup their losses from unpaid bills due to COVID-19.
Along with the importance of making your home as energy efficient as you can, we’ve put together this useful guide to help you keep your energy bills as low as possible.
Compare and switch your suppliers to get a better deal
Brand loyalty counts for nothing these days, with long term customers often being left with the worst deal. When it comes to switching suppliers, it pays to compare unit prices and offers to make sure you’re not paying over the odds for your energy.
Using comparison sites such as Compare The Market and Go Compare are great starting points however not all aggregators offer you the same deal. Depending on the amount of commission they earn from suppliers, they don’t always pass the savings on to the customer. We recommend that you check prices and make comparisons across a few different sites to find the lowest like for like deal.
Alternatively, Look After My Bills is a free service which takes care of comparing and switching your suppliers as soon as your deal ends, meaning you don’t have to do anything. All you need to do is provide a small amount of information about your bills and they will do the rest. This is a great option if you’re always on the go and have little time spare.
Use water efficiently
Hot water use contributes around £228 to the average annual combined energy bill, so increasing your water efficiency could bring about substantial savings.
The good news is, that unlike gas and electricity, water bills are set to decrease by 0.5% from April 2021 meaning you’ll save £2/year on your annual bill. For some customers, it could be up to as much as a huge 8% decrease (Wessex Water).
To save even more cash, the average household could reduce their bill each year dropping the washing machine temperature down to 30°C (or even 20°C for less soiled items), using a bowl when doing the washing up and only filling up the kettle with the amount of water required.
Install a smart meter
Whatever the age of your boiler, installing a smart meter will allow you to track energy use across your home and set your heating and hot water to come on and off when you need them, heating just the areas of your home you want, at just the temperature you want.
More effective control can lead to big savings; turning down your room thermostat by just one degree could save around £75.
Turn off appliances
It’s a small change of habit and will cost you nothing, but you could make significant savings on your energy bills by unplugging electronic devices overnight and making sure unnecessary lights are switched off.
A typical household could save up to £80 a year simply by turning off appliances left on standby.
Make home improvements
Making changes such as upgrading your insultation, installing double/triple glazing and adding solar panels can save you money and reduce your carbon footprint in the long run.
Even though, some larger home improvements require an initial upfront investment, you may be able to take advantage of the Governments ‘Green Homes Grant’ scheme launched back in September 2020.
This scheme offers homeowners in England a helping hand in making their homes' energy-efficient by providing vouchers worth up to £5,000. Full details can be found on the GOV website.
Thinking of making your home more energy efficient?
Our low-cost home improvement loan can give you the opportunity to turn your house into a green home with rates starting as low as 3.2% APR Representative between £7,500 and £25,000.