4 ways to save money on your electricity bill
Have you noticed the enormous difference in your electricity bill? If yes, it's likely you have been affected by the April 2022 energy price cap change resulting in a 54% increase. Currently, it's estimated a household on default or tracker tariffs, paying by direct debit, could see energy bills rise to £1,971 per year. That's an average increase of £693. And it is predicted to increase again later this year!
Fortunately, you can do things around the house differently to reduce electricity costs. And, if saving money is not enough of a motive for you to make some changes, think of the difference it will make to the environment if everyone reduces their electrical energy consumption.
1. Take command in the kitchen
3. Lights out means more money in
4. If it's left on standby, standby for a higher bill
What if I am struggling to pay my energy bills
1. Take command in the kitchen
The kitchen is usually the part house with the most appliances. And these appliances are big energy eaters too, so it's an excellent place to start. Here are a few simple tips to help you boss energy costs in the kitchen:
- Don't fill up the kettle for just one or two cups of tea, and only boil the amount of water you need. It takes far more energy to bring a full kettle to boil than if it is a quarter full.
The same applies to a cooking pot. Reducing the amount of water will mean it reaches boiling point faster. And try to cook with a lid as this will help trap the heat inside the pot and cook your food faster. - Chopping food, such as vegetables, into smaller pieces will reduce cooking time.
- Heating a small amount of food in a microwave will be more efficient than using a traditional gas or electric hob.
- If you are using an oven, avoid opening the door repeatedly, resulting in heat loss.
- Keep your freezer full if you can. A full freezer will hold the cold better, especially after the door is opened. And, remember not to leave your fridge door open for longer than needed.
- If you plan on defrosting food, be sure to take it out earlier in the day so it can defrost naturally instead of using a microwave or oven.
- Use your dishwasher only when it is full and in an economy setting. You may also want to wash bigger items like trays and pots by hand so that you can fit more smaller items in a wash.
Did you know? Cutting the use of your dishwasher by just one cycle a week could save you £14 a year.
2. Be smart with your washing
Washing clothes and ironing is another big energy (and time) consumer. Here are a few simple ways to cut back on costs:
- Use your washing machine for full loads (instead of part loads).
- Remember to choose the economy options and avoid using high temperatures settings.
- Dry clothes on a rack or a clothesline and avoid using a dryer (or tumble dryer).
- To reduce ironing, shake out your clothes immediately after washing to smoothen out wrinkles and hang correctly on the line. This helps minimise creases forming on clothes.
- For delicate clothing, consider using laundry bags and gentle cycle settings.
- Think about what items you really need to iron. Not ironing items like towels and bed linens will save you time and money. And, no one will notice those non-ironed items, except maybe you.
Did you know? Using a tumble dryer three times a week could cost you over £223 a year.
3. Lights out means more money in
Turning off lights seems obvious, but it makes a huge difference. Plus, if you have kids, it's also worth teaching them to turn off lights when they leave a room. Have a look around your home for halogen light bulbs (including spots) and consider replacing these with LEDs. LEDs bulbs last longer. They are also more energy-efficient, using 80% less energy than halogens light bulbs, according to Energy Saving Trust.
Did you know? Leaving one 100 Watt light bulb on for 10 hours daily can cost you £102.20 in a year.
4. If it's left on standby, standby for a high bill
Many appliances use power even while on standby. Fortunately, switching off most modern devices at the wall should not mess with the settings, although it's best to double-check the appliance instruction manual. But is it worth the hassle of unplugging appliances?
As reported by the BBC, according to British Gas a TV can use £24.61 per year, while Sky or Virgin Media box can use £23.10 per year while on standby. Another tip - unplug charging devices once the battery is fully charged. Overcharging a mobile phone or laptop will use electricity unnecessarily.
Did you know? Unplugging devices on standby can save a household an average of £147 per year.
What if I am struggling to pay my energy bills
If you are struggling to pay your bills:
- You should contact your supplier straight away. Under Ofgem rules, they are required to work with you on a payment plan.
- Check if you have a grant and scheme available to help with your energy bills. This can be through your supplier or from the government through your local council.
- Get advice if you are struggling with debt from:
- Money Advice Service
- National Debtline
- StepChange Debt Charity - You may also want to check if you can get a cheaper deal. Using energy switching services like Switchd might help you find the best deals, although it's an overpriced market at the moment. You can also speak to your current supplier to see how you can reduce your bill. For example, switching your payment method to Direct Debit.
If you are feeling the effects of the cost of living crisis, you are not alone. You may want to revisit your savings goals, and find ways to budget better. Unfortunately, it's not just utility bills that are on the rise. Inflation rates rose by 9% in the UK for the 12 months to April (up from 7% in March).
The Bank of England has again lifted interest rates, now at 1%. Earlier in the year we reported how the interest rates to rise would affect our pockets, interest rates were at 0.5% back then. The knock-on effects mean it will make borrowing more expensive - for example, mortgages as well as credit cards and personal loans.
Sadly there are already clear signs that many are struggling to make ends meet. Citizens Advice said it set a third straight record for providing crisis support in March. Searches on Google for "payday loan" shot up in April. While quick loans, like payday loans can be useful to see you through to the end of the month, payday loans should not be used if you are experiencing money troubles and paying for things like utility bills.
In summary
Millions in the UK are affected by the energy price hike. If you've not been affected, you are likely on a fixed rate term with your supplier. If this is the case, you will see a price increase when the rate term ends. Unfortunately, utility bill increases affect us all, but changing habits at home, even if they are small, will make a difference in the long run. Habits like turning off lights when we are out of the room, unplugging devices that don't need to be on standby and being more controlling in the way we cook and wash clothes can potentially save hundreds of pounds a year.
It's also important to understand your bill and how costs are calculated. Look out for our next guide - Understanding and paying your electricity bill.