UK household energy bills rise 3% - here's how to save money
An easing of lockdown causes a spike in the cost of energy
17th July 2020 15:42
by Brean Horne from interactive investor
An easing of lockdown causes a spike in the cost of energy
UK energy bills have risen 3% in July this year, according to data from MoneySupermarket.com.
The average UK household energy bill is now £835 a year, up from £810 in April.
Energy prices had fallen during lockdown as businesses shut and used less power. With lockdown over those savings are now vanishing.
Millions of customers could be at risk of overpaying for energy as prices rise.
An estimated 11 million UK households are on standard variable tariffs, which are often the most expensive energy plans.
This because the price you pay per unit of energy changes any the discretion of your supplier.
Low income households are most likely to be on an SVR tariff, causing them to pay more for energy.
How to save on your energy bill
These three tips can help you cut the cost of your energy bill and save money.
1) Check your tariff
It is important to check what type of energy tariff you are on.
If you are on a fixed price energy tariff, the price you pay per unit of energy that you use will not change for a certain period of time.
Variable energy tariffs are often more expensive as the price you pay per unit of energy changes at the discretion of your supplier.
If your fixed tariff is coming to an end or you are already on a variable energy tariff you should start looking around for a better deal.
2) Shop around
Price comparison websites are a great place to start when shopping around for a new energy provider.
They allow you to search through hundreds of deals from different companies quickly and easily.
You will need to have a recent energy bill or annual statement to hand which contains details about your current energy plan.
If you do not have a recent energy bill, you can contact your current energy provider for the information.
As well as looking at price, be sure to check how their customer service is rated to ensure that you get the right help if any issues arise.
3) Switch
If you find a better deal elsewhere then you should make the switch.
Your new provider will arrange the switch and ask you to provide your most recent meter readings.
Most energy companies have signed up to the 'Energy Switch Guarantee' which means that it should not take more than 21 days to complete your switch.
From 1 May 2020, suppliers that take longer than 15 working days to make the switch have to give you an automatic £30 compensation payment.Â
This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.
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