So should you switch energy supplier, try to save on your energy bills, negotiate with your energy supplier…or all three? In October 2024, the UK energy price cap rose by 10%, from £1,568 to £1,717 annually for a typical household paying by direct debit. For the average UK household, the cap’s increase means a noticeable rise in monthly energy bills, adding to the cost-of-living pressures and inflation seen in other categories like food shopping.
But there is hope. While the average energy bills in the UK vary depending on factors like home size, location, and usage, there are ways to reduce costs regardless of your situation. From learning how to switch energy suppliers to improving your home’s energy efficiency, here’s a guide to saving on energy bills and negotiating better deals.
Why are UK fuel bills so high?
UK fuel prices have risen steeply in the last few years - and continue to go up - due to a mix of global and domestic factors. Rising wholesale gas prices, largely driven by increased global demand, contribute significantly to UK energy costs. Supply chain disruptions and geopolitical tensions, such as the war in Ukraine, have further driven up energy costs across Europe, affecting the UK. Additionally, many UK homes are older and energy-inefficient, leading to higher energy consumption, especially during colder months.
In October 2024, Ofgem increased the energy price cap by 10%, raising annual costs for a typical household on a standard variable tariff to £1,717. While the price cap aims to shield consumers from the highest spikes, it also means bills will adjust quarterly to market conditions and so every household in the UK has to prepare for constant change.
What do I do if my energy bill is too high for comfort?
If your energy bill feels uncomfortably high, you have some options. Think of these as a range of weapons you can fire when you want to slash costs.
First, compare deals on energy comparison websites to see if switching to another provider could save you money. You’ll usually need to know what you're paying your current supplier per unit of gas and electricity so you can compare, and keep a lookout for any welcome bonuses you should add into your calculations.
Improving your home's energy efficiency can help to lower bills. Simple things like turning down the thermostat, using energy-efficient bulbs, and insulating your home to reduce heat loss can all help to reduce your energy consumption. Additionally, smart meters let you track your usage in real-time, helping identify and cut unnecessary energy consumption.
Let’s explore these options in more detail.
1. Switch to a Cheaper Energy Supplier
Switching energy suppliers is often the quickest way to save on energy bills. With many energy suppliers in the UK market, switching can lead to more competitive rates, potentially saving you hundreds of pounds each year.
- Compare Rates: Use a trusted comparison website like uSwitch, Compare the Market, or MoneySuperMarket to see if you could get a cheaper tariff with another provider.
- Review Tariff Types: Some tariffs, like fixed-rate plans, protect you from price hikes, while variable tariffs might be cheaper in the short term but are subject to change.
- Green Energy Options: Many suppliers now offer green tariffs that rely on renewable sources. These can sometimes be cheaper than traditional tariffs, helping you save on energy bills while supporting environmental efforts.
Switching suppliers typically takes a few weeks and can often be completed online, making it a straightforward way to save on energy bills. Just be sure to check if your current plan has any exit fees or penalties for leaving a contract early.
2. Can You Haggle with Energy Suppliers?
Yes, you can. Energy suppliers in the UK are often open to negotiation, especially if they sense that you’re considering switching to a competitor. Here are some tips on how to negotiate with energy suppliers to save on energy bills:
- Call and Compare: Research other providers' rates, and if you find a better deal, call your current supplier and let them know. They may offer a discount to keep you as a customer.
- Request a Loyalty Discount: If you’ve been with your provider for a while, mention this. Many companies have retention teams that offer loyalty discounts to long-term customers.
- Ask for Additional Perks: In some cases, suppliers may offer perks like free smart meters, discounts on home services, or additional credits toward future bills.
Negotiating with energy suppliers can help you get a lower rate without needing to go through the process of switching.
3. Make Your Home More Energy-Efficient
Increasing your home’s energy efficiency is a surefire way to reduce usage and save on energy bills. Here are a few easy ways to cut costs through home improvements:
- Upgrade to Energy-Efficient Appliances: Energy-efficient appliances, especially those with high energy ratings, use significantly less power. Switching to LED bulbs and energy-efficient washing machines or refrigerators can make a noticeable difference.
- Insulate Your Home: Heat escapes through poorly insulated walls, roofs, and windows, making your heating work harder. Consider investing in double-glazing, loft insulation, and draught-proofing.
- Install a Smart Thermostat: Smart thermostats, such as those from Hive or Nest, help you monitor and control your heating remotely, allowing for more efficient energy usage.
Many of these upgrades have upfront costs, but they quickly pay for themselves through reduced energy bills.
4. Be Smart with Your Daily Habits
Changing how you use energy day-to-day can also help you save on energy bills without any costs. Here are some habits that can help:
- Turn Down the Thermostat: Reducing your thermostat by just one degree can cut your energy usage by as much as 10%.
- Use Appliances During Off-Peak Hours: Many energy suppliers offer lower rates during off-peak hours, which are often overnight or early in the morning. If your tariff includes these rates, try running appliances like washing machines or dishwashers during these times.
- Unplug Unused Devices: Many electronics continue to draw power even when switched off. Unplug devices when they’re not in use, or use a power strip that you can turn off to prevent phantom power drain.
5. Monitor Your Energy Usage
Keeping track of your energy usage is essential to understanding where you can cut back. Many UK suppliers offer smart meters, which show real-time usage and can help you identify energy-draining habits.
- Request a Smart Meter: Most energy suppliers offer smart meters at no extra cost. These meters provide detailed information about your usage, allowing you to identify peak usage times and make changes accordingly.
- Review Your Bills Regularly: Compare your monthly usage over time to spot any sudden increases. If you notice a spike, investigate possible causes, like an inefficient appliance or a change in household habits.
6. Consider Renewable Energy Solutions
For those looking to make long-term savings on energy bills and reduce their carbon footprint, renewable energy solutions like solar panels or home battery systems can make a substantial impact. While the initial investment is higher, government incentives like the UK Smart Export Guarantee (SEG) allow you to sell any excess energy back to the grid, helping you save on energy bills in the long run.
How HyperJar can help with energy bills
To avoid the stress of worrying about whether or not you can cope with rising energy costs, HyperJar can help you organise your money in a way that’s easy to understand. Customers can create a dedicated Energy Bills jar to set aside money each month for energy expenses, making it easier to track and control fuel spending separately from other household expenses. This works perfectly if you want to ‘pay as you go’ each month, using the HyperJar to make a debit card payment, or you can transfer the money back to your bank once a month if you have a Direct Debit set up.
If you add money to your Energy Bills jar just after pay day, you’ll have peace of mind that you can afford it and you’ll have a clearer picture of what’s left to spend on other needs and wants.You can also use the analytics tool to track how much you spend from this jar every month, so you can investigate what’s happening in high months and gather evidence for a potential supplier switch.
What can you do now to save on energy bills?
What are you waiting for? If you want to save on energy bills, it’s time to start doing some research. Your first port of call should be an energy comparison website like MoneySavingExpert or USwitch. If you switch to a cheaper provider you’ll save money and if you haggle with your current provider, you might save even more. Either way, it’s a win, win! Once on your new tariff, you can bring costs down even further by making your home more energy efficient and turning off electrical items when not in use.
Use HyperJar to budget for your bill costs so you feel on top of what’s coming up.
And remember that if you’re feeling stressed and weighed down by the pressure of paying bills and you’re worried about debt there are some great free services there to help.The National Debt Helpline offers free tailored debt advice via their website and StepChange is another excellent support service with 24/7 online support.
If you want to save money on other life expenses, check out these blog posts:
How to save money on your cinema trip
How to save money on a family holiday
How to reduce the cost of cat or dog ownership
.png)