Winter warming could mean a bumper bill in 2010

Even though suppliers cut their prices this year, the average household now faces an annual energy bill of £1,239 – £327 or 36% more than at the beginning of 2008, according to uSwitch.com. And if cash strapped consumers ramp up the central heating this winter, the bill could be even higher.

Household heating accounts for 42% or £520 of the average annual energy bill, with most of this spend accumulated over the winter months. As a result, households will be bearing the full brunt of high energy prices throughout the coming months. This year’s price cuts only shaved 4% or £54 off the average energy bill – considerably less than the 42% or £381 increase seen by householders in 2008 when bills rocketed from £912 in January 2008 to £1,293 in January 2009.

Will Marples, energy expert at uSwitch.com, says:

“Rather than sitting back and hoping for further reductions we can all give ourselves a substantial price cut on our energy bills today. Moving to dual fuel, paying by direct debit and signing up to an online plan will all help save money. Online energy plans are around £300 a year cheaper than standard energy plans – this is a very simple saving for any household to make. And with only 5% or 1.3 million households on online plans the scope for others to join them and save money is huge.”

uSwitch.com offers the following tips to get cheaper fuel bills in 2010:

- Compare and switch. If you have never switched, you are likely to be paying a premium on your energy bills.
- Pay by direct debit. If you pay by cash or cheque you could be paying just over £100 a year more on average for your energy.
- Switch to duel fuel. Dual fuel plans (buying gas and electricity from one supplier) often come with a discount.
- Go online. Customers on standard plans are paying on average £300 more than new online customers.
- Keep on top of energy bills. Give regular meter readings to ensure you are being billed accurately and review your energy bills at least once a year.
- Insulate. Make sure your loft is insulated to a depth of at least 10 inches.
- Get the grants you’re entitled to. Contact your supplier or the Energy Saving Trust to find out whether you would be eligible for a grant or financial help towards making your home more energy efficient.
- Switch off unused appliances. Before you go to bed make sure you turn off all appliances such as TVs, computers and DVD players at the socket.
Turn the heating down. Reducing the number on your thermostat by just one degree and you could save up to 10% on bills.
Block draughts. Check your windows and doors are sealed against draughts.