How much notice do you take of your gas and electricity bills?
You’ve probably noticed they’re on the up and if you keep your eye on the news you’ll know energy prices are a major talking point between Britain’s political parties.
But perhaps what you might not know, is your bills have doubled since 2004.
And if you don’t do anything about it, they’ll double again by 2020. The trouble is, no one is going to help you out. Except you.
Despite Ed Miliband’s pledge to freeze energy prices amidst public outcry in the rate energy costs are increasing, this won’t take effect for at least 18 months – if ever. So how can you take hold of your own bills and protect yourself from further rises?
The answer is simple. By putting your gas and electricity on fixed tariffs. All well and good by what exactly does this mean?
What is a fixed energy tariff?
A fixed tariff allows you to lock your prices at a set rate, ensuring they don’t rise yearly in line with the energy company’s increases. With a fixed tariff your prices will be locked for a set time, generally between 18 months and two years.
If you don’t like the idea of finding a letter in the post stating your bills are going up, this is the perfect solution. On the other hand you won’t benefit from any potential decrease, but the chances of this are rare.
Energy expert at Go Compare, Jeremy Cryer said: “If you are more comfortable knowing exactly what your monthly commitments are, it may be beneficial for you to think about fixing before all the good deals and tariffs start disappearing from the market – which they have been in recent weeks.
“But fixing energy bills can be a gamble for consumers. It’s fine when the market is volatile and prices are going up and down, but not such a good idea when prices are stable, as you pay a premium to fix.”
What happens after the fixed tariff contract expires?
Once your fixed tariff ends, your supplier will automatically shift you to a standard tariff – which tends to be the most expensive. Make sure to shop around and compare a few suppliers to get the cheapest deal.
Tips for reducing your energy consumption
Whilst a fixed tariff could provide part of the answer to expensive bills, you also need to consider the way you use energy in the home. By taking note of our simple tips you can save even more on your expenses.
- Try to insulate your home wherever possible. The better insulated your property, the less heat you’ll need to warm the place up
- Consider replacing your boiler if it’s old and faulty. Not only can you save over £300 a year but you’ll also avoid those costly repair bills
- Switch to energy saving light bulbs. They do exactly as they say
- Avoid the tumble dryer in summer when you can hang clothes out to dry instead. Tumble dryers are pretty expensive to run
- Make sure to switch off your appliances rather than leaving them on standby. This includes your TV!
Facts & Figures You’ll Love To Share
- With a fixed energy tariff you’ll be able to protect your energy bills against the rising prices.
- Variable tariffs mean your bills fluctuate with the change of energy prices and could see you pay a lot more for heat.
- By replacing your old boiler you’ll be able to avoid the costly repair bills if something goes wrong to your old boiler.
- Ensure to have a regular boiler service so any hidden faults can be identified before anything goes wrong.
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