How to get help with paying your energy bills this winter
ALMOST 14 million homeowners will have to cut their energy use this winter over looming price hikes.
Families are willing to risk freezing as temperatures plummet because they worry about paying their energy bills.
Industry experts have said energy giants are going to hike their prices as the wholesale cost has rocketed by 66 per cent to a five-year high.
Shocking research reveals that 13.6 million Brits will ration their energy by not switching on the central heating and reducing the use of energy-hungry appliances.
It comes as millions of households are paying out more for their energy because they believe they are on the cheapest tariff.
More than 13 million British households missed out on savings last year because they did not change their energy supplier, with almost 60 per cent of them believing they were on the cheapest tariff available, the poll to mark Big Energy Saving Week found.
Despite being able to save hundreds of pounds by switching, a third of Brits plan to snuggle up under blankets instead of switching the heating on, as one in ten say they worry about affording their fuel bill.
A quarter even plan to just fill a hot water bottle when the cold snap comes, while 12 per cent will wear thermal socks to combat the freezing temperatures.
Research from Go Compare also reveals that 41 per cent will turn their thermostat down to reduce costs, while 27 per cent won't heat unused rooms.
But 30 per cent could be missing out on cheaper energy bills because they haven't switched suppliers for three years or more.
A further 17 per cent admitted they have never switched energy suppliers - meaning they could be losing out on hundreds of pounds.
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Energy Saving Trust chief executive Philip Sellwood said: "Many bill payers are missing out on substantial annual savings because they assume they are on the best tariff without actually checking.
"Prices fluctuate every year, so by not switching and being on energy autopilot, consumers may be sleepwalking towards having less money."
Ben Wilson, spokesperson for Gocompare.com Energy, said: “For many people, energy bills represent a significant proportion of their household expenditure. So it makes sense to find ways to cut the cost of winter bills when household energy use tends to be at its highest.
“But instead of going without - now is a good time to shop around to see if you can reduce the cost of your gas and electricity by switching to a better tariff. Our survey suggests that there are many homeowners who have either never switched or have stuck with the same supplier for three years or more.
"Chances are these people are charged their suppliers’ standard variable rate – so will be paying way over the odds for their energy. According to our latest figures, customers switching gas and electricity supplier with Gocompare.com Energy could slash their energy bills by as much as £366."
But there are other ways to save money on energy that don't involved freezing under a blanket at home.
Winter Fuel Discount
The Winter Fuel Payment is an annual one-off payment to help you pay for heating during the winter.
Anyone born on or before 5 January 1953 can get it, if you live in the UK or another eligible country.
To find out more, visit the section on GOV.UK.
Cold Weather Payments
Cold Weather Payments are one-off payments to help you pay for extra heating costs when it’s very cold.
You’ll get a payment each time the temperature drops below a specific temperature for a set period of time.
You’ll only be eligible if you already get:
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Universal Credit
Find out more about on GOV.UK.
Warm Home Discount Scheme
You might be able to get £140 off your electricity bill under the discount scheme if you are on a low income or get the guarantee credit part of Pension Credit.
Check with your supplier to see if they offer the Warm Home Discount - not all suppliers are part of the scheme.
If you've applied for the Warm Home Discount but you switch supplier before you get the payment, you have to apply again with your new supplier.
Your new supplier might have different rules about who gets the discount. This doesn’t affect you if you get the discount automatically, without having to apply.
Find out more about the on GOV.UK.
Energy grants and extra help from your supplier
If you are in debt to your supplier, charitable trusts sometimes offer grants to help you pay it off.
You will have to provide detailed information about your financial situation and it will take a while to complete.
The following energy companies offer grants and schemes that are open to anyone - you don't have to be a customer:
- British Gas Energy Trust
- EDF Energy Trust
- E.on Energy Fund
There are also companies who offer grants specifically for their customers:
- npower Energy Fund
- Scottish Power Hardship Fund
- Ovo Energy Fund
- SSE (Southern Electric) Priority Assistance Fund - check if you're eligible by calling 0800 072 8616
The charity can help you with the application. Alternatively you can get help from an adviser at .
The organisation has a list of grants and schemes from energy and water companies across the UK.
If you’re a pensioner, disabled, or sick, you might be able to get extra help and support from your energy supplier through their .
They would be able to help you with things like:
- reading your energy meter
- moving your energy meter free of charge
- getting your bills sent or copied to someone else, eg a carer
Switching suppliers
If you shop around, you could save nearly £400 by switching energy suppliers.
Energy companies are planning to hike their prices according to industry experts and many small suppliers have already increased their energy bills and withdrawn their best deals.
Consumers minister Margot James said: "Millions of people have already switched and saved this year, but we know that some people can find it difficult to find the best deal.
""Big Energy Saving Week will help people up and down the country find out how they could save on their energy bills, many could save around £300, as we create a country that works for everyone."
There are ways to protect your cash and save money by switching supplier or simply shopping around:
Lock into a cheap fixed energy rate now
You'll have to move quickly. If you don't shop around then you will probably be on your provider's default tariff - known as the standard variable deal - meaning you will be hit straight away by price hikes.
Shop around as a new customer
Energy companies have started offering exclusive deals to new customers again after it was previously banned by the regulator.
If you only ask your current provider about a fixed deal then you could be loosing out on hundreds of pounds.
British Gas, Npower and SSE have recently launched exclusive deals for new customers and have not ruled out doing so again.
EDF Energy and Eon bar existing customers from signing up to cheap deals.
Of the Big Six suppliers, only Scottish Power has pledged always to offer tariffs to all customers.
Pay to ditch your old deal
If you are on a fixed deal, you're blocked from switching to a better offer until the end of your contract. It means that it was pointless trying to take advantage of falling prices because you'd be hit with a penalty.
But fixed deals have come down so much in price that it is worth paying to get out early now.
According to the , a customer at Scottish Power's Help Beat Cancer Fixed Price Energy tariff in 2013, for example, is currently paying around £1,066 a year for gas and electricity.
Although the tariff doesn't end until January, it would be worth paying the £50 exit fee to leave early and switch to the cheapest Flex 12 month Fixed deal from Iresa costing £744 a year.
Leave your account in credit
Winter means you're definitely going to use more power so unless you're desperate for the cash, leave money in your account to cover the extra power you use.
Switch every three years
From next year, if you fail to switch tariffs at least once every three years, your details will be put on a marketing list all suppliers can access. They can then bombard you with junk mail.
To opt out, look out for a letter from your current supplier asking if you’d like to receive ‘personalised deals’.
Make sure you reply saying you do not want personalised deals. If you don’t reply, then your details will automatically be added to the database.
Check every comparison site
Shopping around for the best deals because some websites will only have deals available to them. For example, Eon has a top one-year fixed deal costing £799, but to get it customers must sign up via a website such as Energyhelpline or Moneysupermarket.
So before you commit to a switch, run separate searches on Energyhelpline, GoCompare, Moneysupermarket and uSwitch.
Ben Wilson, spokesperson for Gocompare.com Energy, said: “Switching energy suppliers is quick and easy, particularly if you use a comparison website which will allow you to compare tariffs offered by a range of providers.
"Log-on to a comparison website armed with recent bills from your current supplier, which will show details of your energy usage, and find a deal which best suits your needs.
"After a two week cooling off period, your new supplier will contact you with follow up information about your service switchover - during which, there should be no disruption to your energy supply.”
Below, we reveal the common myths people believe will save them money.
Myth busters: What shouldn't you do to save money?
SHOULD you keep your heating on all day? Is it cheaper to leave lights on rather than turn them on and off? We reveal the common myths that won't save you a penny.
Myth one: It’s better to leave the lights on rather than turn them on and off several times
FALSE! Having lights switched on when they aren’t needed is a sure-fire way to waste energy.
In fact, turning off lights when you don’t need them could save £15 per year, according to the Energy Saving Trust.
Myth two: The higher you set the thermostat the quicker your home will heat up
FALSE! Energyhelpline’s chief writer Matt Ridout, said: “Turning your thermostat up higher will not increase the speed your home heats up.
“It will only result in the final temperature being higher. It doesn’t work like pressing your foot on the accelerator of a car.
“In fact, using your heating in this manner will often lead to your house becoming too warm, and you wasting energy and money in the process.”
Myth three: Leave your heating on if you’re going away in winter
MAYBE. Whether you need to leave your heating on depends on how long you’re going away for and what time of year it is.
If you’re going away over the next few months then it’s important to make sure your pipes don’t freeze, but you don’t need to heat your home to the normal temperature.
Myth four: It’s better to use a dishwasher rather than do the washing up
MAYBE. “It’s too close to call really,” says Brian Horne, home energy expert at the Energy Saving Trust “the difference between using a dishwasher on an energy efficiency setting and washing up in a bowl of water, not a running tap, is very small in terms of the energy you’ll save.”
However, consumer group Which? says that using a dishwasher can be a more water-efficient way of doing the dishes rather than handwashing in the sink.
Myth five: It is cheaper to run appliances at night?
MAYBE. Only if you’re on a time-of-use tariff, such as Economy 7 or Economy 10, these are typically used by households with storage heaters.
They offer a lower rate of electricity during certain hours of the day – sometimes at night – while charging a higher rate outside this time.
Many experts suggest that they are targeted at vulnerable customers as they require a meter or are payable on receiving a bill.
Myth six: If you leave an appliance plugged in then it will continue to use energy
TRUE! On average, a DVD player left plugged in for 6 hours a day would add £3.15 to your energy bill.
While a phone charger plugged in for 5.6 hours a day would waste 62p a year and a laptop left charging 4.5 hours a day would cost £1.63, according to comparison website uSwitch.com.
Individually these numbers may seem small and charges would vary depending on your energy tariff and the energy efficiency rating of the appliance, but they do add up.
The Energy Saving Trust estimates that each household could save £30 a year by not leaving appliances on standby.
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