Money
Getting the best deal
Save £100s on...home energy
Britain's fourth largest power supplier Npower has raised its prices by 17 per cent for gas and 13 per cent for electricity. So it won't be long before prices go up across the board
For this reason it is vital to make sure you are getting the best deal. And there are two ways to do it – cut energy costs and pay less for what you use, says Teena Lyons
Step one: Switch. If you've never switched supplier before you could save £100s a year with a few minutes' work. Even if you have previously switched, it is still worth checking, because you could save up to 10 per cent on your bills.
Do wait a couple of weeks, though, to see how the other services will react to Npower's announcement, so you can compare all the latest prices properly.
When the time comes, internet comparison sites will do all the work for you. Online you can compare prices and even perform the switch; all you need to do is take a meter reading. Some sites will even reward you with cashback or a case of wine for your 'hard work'. Try www.energyhelpline.com, www.moneysupermarket.com or www.uswitch.com for some of the best deals.
Step two: Pay clever. How you pay really does make a difference. Fixing a monthly direct debit, where you pay a fixed estimate every month, can save you up to 10 per cent. Don't worry: if you overpay you will get interest on the overpayment and you can always adjust your monthly bill if you find you are paying vastly over or under the odds.
Opting for a dual fuel supplier – where you get gas and electricity from the same firm – can be a cheaper option. It's worth checking when you do your comparison.
Step three: Stay warm. If there is at least one resident over 60 in your home you can access Powergen's special Staywarm dual fuel tariff, which is often not included in comparison sites. The service is unique because the bill does not depend on the energy used. You pay a fixed tariff over the year which gives you peace of mind that if you turn up the heat, you won't pay more. For more information try www.eonenergy.com.
Step four: Go green. If you've not considered it before, now really is the time to cut down on your energy usage. Log on to www.energysavingtrust.org.uk for some great tips on cutting energy use (and costs) such as turning your thermostat down by one degree which could cut your heating bills by up to 10 per cent.
The Energy Saving Trust can also give you valuable advice on a range of grants available for improving home heating and insulation.
Teena Lyons' opinions are her own and for general information only. Always seek independent financial advice.
