Your Energy Guide
HOW CAN I SAVE ON MY ENERGY BILLS?
By signing up to a green electricity tariff, homeowners would be supporting green energy sources in the UK.
However, some energy plans do come at a price, although the money you spend on going green will be used to fund renewable projects depending on the chosen tariff.
With Only Finance, you can find the right plan to suit your household.
Gas and electricity bills are a major part of our monthly household expenses, yet with last year’s rise in energy prices, consumers are finding it almost impossible to make ends meet during the current financial downturn.
A number of homeowners are unaware of how the bills are actually calculated or the options they have when it comes to searching for the right plan. Therefore people will not know exactly what they are paying for.
WHAT ARE MY OPTIONS
The usage of gas and electricity is measured in kilowatt hours by the supplier. The amount of units you use is multiplied by the rate of each unit depending on the price plan set up by the supplier.
There are a variety of plans to choose from:
- Standard Plan - Standard plans are usually based on a variable rate which means that the price per unit can go up as well as down. This is what you would be given if you do not opt for an alternative option.
- Capped Plan - By opting for a capped plan, you will be set a limit depending on the price you want to pay for a set period. You will not be able to exceed this limit and once the set period is over, you will be moved to the standard plan.
- Fixed Plan - A fixed plan is where you are given a fixed price per unit of energy used for a set period. Unlike the standard plan, the unit price will be guaranteed to stay the same for that set period. So if unit prices increase, over the course of the fixed period you will still be paying the same price. However, if the energy prices fall, you will not benefit.
- Online Price Plans – These can vary depending on the provider. You can manage your account online and may usually be offered discounts on rates.
- Green Plans - Some providers offer the environmentally friendly plans (green plans) which applies to electricity only. These plans may be costly but will deliver environmental benefits.
- Economy 7 Plans - This also applies to electricity only where energy used off-peak (during the night), will be cheaper. To be saving on this plan, you would usually need to use approximately 20 per cent of your energy consumption off-peak.
- Social Plans - Social plans are offered to suit the needs of those with a small income. Each unit will be priced equally to the suppliers’ cheapest tariff. You may only be eligible for a social plan of your energy bills account for over 10 per cent of your income.
Regardless of what plan you chose, you also pay a standing charge to be connected to the network on a daily basis.
HOW CAN I SAVE?
The amount you spend on your energy bills depends on the amount of energy you use.
How you pay the bill and the number of energy providers that cover your area are also other factors which may boost up your payments.
By comparing the rates of gas and electricity and switching to a new plan or provider, you could find yourself paying a reduced price for your energy.
HOW DO I SWITCH?
Before you switch, you need to ensure you have chosen the best plan for you.
At Only Finance, you can compare gas and electricity together or separately.
You must know the current usage of energy, your supplier and the amount you pay before searching online in order to get an accurate quote. It would be handy to keep a recent bill beside you during the comparison process.
Once you have provided all the required information, find the supplier with the best rate which suits you.
Complete the application form and ensure you contact your current supplier in order to pay off any arrears.
You must also not that some providers charge a cancellation fee for switching providers.
WHAT IF I DON’T WANT TO SWITCH?
Although comparing the offers from other providers may prove to save you a significant amount of money, there are other ways to see the figures on your energy bills reduce.
By making small changes to your everyday life, you will witness a drop in your monthly gas and electricity bills.
Here are just a few steps to save money on your bills:
- Loft Insulation – This will keep the warm air in and the cold air out, which means you wouldn’t be using as much energy on heating.
- Washing – You can also save money by washing your clothes at lower temperatures, or washing between midnight and 7am.
- Plug sockets – Take out appliances when they are on standby or not in use, such as TV’s, laptop’s and mobile phones.
- Lights – Turn off the lights when leaving a room, even if it is just for a few minutes.