FOOL'S EYE VIEW
A Simple Guide To Bashing Your Bills

By Alison Hunt (TMFAlly)
October 26, 2005

I don't know about you, but I seem to be constantly receiving letters from my energy supplier telling me that unfortunately, my bill has got to increase again. We seem to pay an astronomical amount for our gas and electricity already, so further increases are not welcome!

British Gas has increased its gas and electricity prices by around a third since the start of 2004, with the latest increase of 14% taking effect just over a month ago. Most of the other major suppliers have increased their prices by a similar amount.

So, with predictions of a harsh winter on the way, what can we do to cut all our utility bills down to size and save some cash? Well there are a number of ways to try to tackle them, which rely on us paying the most competitive price possible whilst cutting out energy usage too. Here are some of the best ones:

1. Switch energy providers

If, like many in the UK you have never switched energy provider, be prepared to be surprised. This can save you serious money; Fool partner uSwitch believes that we can save up to £170, simply by switching supplier. And the best bit is, it takes very little effort to do so as there are a number of price comparison websites (like uSwitch) out there who will do the donkey work for you. Simply plug in your postcode, choose the best deal for you and apart from providing a couple of meter readings, they'll handle the rest.

Switch gas and electricity providers with uSwitch.

2. Dual fuel

This is something worth checking carefully; is it cheaper or more expensive for you to take out both your gas and electricity with the same supplier. Although it may logically seem cheaper to take out both through the same provider and take advantage of those dual fuel discounts, in reality the only way to know for sure is to check. Comparison websites can help enormously here, as you can usually find out the best prices for dual fuel or separate providers.

3. Pay by direct debit

If you're one of the many people who still pay their bills with cash or a cheque, save yourself some effort and some money too. As well as being more convenient, many companies offer discounts for customers who pay by direct debit. It should also mean that your bills are spread evenly over the year, sparing you the terror of that winter shocker!

4. Fit a water meter

Generally speaking, if your house has more bedrooms than there are people, you could probably save a stack of cash by fitting a water meter. And by fitting water saving devices you can keep that water bill low. Taking showers instead of baths can save over 300 litres of water each week and a water butt in your garden can allow you to use rainwater to water your plants (it's better for them too). Many councils offer discounts on water butts, why not check out your council's website?

Save money on your water bills.

5. Insulate

A well-insulated house costs less to heat. Conversely, it's also likely to be cooler in the summer so you're a winner all round. Spend some time checking how insulated your loft is and get lagging those pipes (you'll protect them from freezing, too). Check with your energy supplier, many offer special rates if you have cavity wall insulation fitted.

6. Save energy

Try and cut your energy usage by 20% as recommended by the Energy Saving Trust. Here's some of their advice: Turn your thermostat down by one degree to save around 10% of your heating bill. Close your curtains in the evening and don't leave appliances on standby. Also, make sure you don't leave items charging unnecessarily. Replacing your light bulbs with energy saving ones can reduce your lighting costs by up to a whopping £78 over the lifetime of the bulb! They also last 12 times longer. And switch off lights in rooms you're not using. And make sure you turn your taps off fully - a dripping hot tap can waste enough water in a week to fill half a bath.

7. Phone and Broadband

While energy and water prices seem to increase relentlessly, at least there is some good news when it comes to telephone costs and broadband. Increased competition and technology improvements has seen the cost of both fall in recent years. Follow these links for some of our top tips on cutting your home phone, mobile bills and broadband costs.

Get cheaper home phone and broadband deals through uSwitch.

So why not give some of these tips a go and try and reduce the cost of your bills? Not only will you be saving money but you could become more energy efficient, too!

Bash your bills and get a free credit report in our Debt centre.