How Hailsham folks can save money on gas and electricity this winter

Energy prices have been in the news this week and with

winter on the way and gas and electricity prices being increased by at least

ten per cent by all of the big six suppliers now is a good time to check that

you are doing all you can to save money.

The recent background to the controversy surrounding the

high price rises goes like this.

Wholesale fuel prices have increased by a lot over the past

year and the energy firms say this is why they have had to put the price rises

up by so much.

Last week, Ofgem the regulator, calculated that energy firms

were making £125 in pure profit each year from each customer.

This is a bit misleading. It is true that if the recent

price rises were taken as a whole in comparison with the wholesale cost for a

year, Ofgem's claim would be correct but that is not the case.

By Ofgem's own figures, the energy companies made a net

profit of around two per cent (about £25 a year per customer) from 2004 to

2009.

Part of the cause of rising prices is the government's green

and renewable energy policy. To make this happen, expensive investment is

required and we as customers have to pay it.

The result of Monday's energy summit attended by the Prime

minister, David Cameron, the Energy Secretary, Chris Huhne, consumer groups and

the big six energy companies did not result in any action that will force

companies to lower their fuel bills.

The message from the government was basically that we need

to be pro-active in switching to a better deal. The energy firms coughed up

with a promise of free insulation and we were all reminded to be careful about

what we use in order to reduce bills.

So, what can we do to lower energy bills and not become one

of the 50 per cent of households who will be classified as being in fuel

poverty by 2015 if current usage and price trends continue?

Here are a few tips:-

•  Make sure you are on an online tariff as these are charged

  at a lower rate, usually 5% less.

• Make sure you pay by direct debit; again paperless billing

  will save you around 5%.

• Some energy firms (including British Gas if you are on duel

  fuel) will send you a free energy usage monitor. This helps you watch your

  usage and can keep bills down.

• If you have never switched before, then use a comparison

  site to compare the market and find a better deal. If you have switched but it

  was more than a year ago, do it again. It is well worth comparing regularly as

  one of the criticisms of the energy companies is that their bewildering array

  of tariffs that keep changing confuses customers.

• If you are elderly or low paid or on benefits, work out if

  your gas and electricity bills over a 12-month period cost you more than 10% of

  your total income in the same period. If so, you are in fuel poverty and many

  companies will refund you around 10% of your total bill.