Energy prices are on the rise, and it’s not unusual to get a bill through the post that’s so hefty, that it really makes your eyes water. To make matters worse, it’s often hard to tell where the price hike came from, and how it’s actually been calculated. Energy prices are subject to more volatile increases than ever before, and in many cases, your tariff will change without you knowing. In fact, it’s become so extreme that some people discover their latest electric bill doubled for no reason compared to their last one!
Energy providers are turning up the heat in their bid for your business, and with so many tariffs available, it pays to be aware of why your bill has increased, and the best course of action to decrease it. But first, let’s explore a few reasons why your bill may has risen through the roof:
Your home isn’t energy efficient
If you’ve just moved home to find that your energy bill has doubled for no reason compared to your old one, then it may be the case that your house is less energy efficient than before. Energy efficiency doesn’t just cover insulation, but the type of bulbs and appliances that are installed in your house too. Some older houses with older fittings are less efficient, so it can happen from time to time that a homeowner’s electric bill doubles for no reason- even in the Summer months, when energy use is at its lowest. Insulation plays a massive role in your energy consumption in the Winter, and less insulated houses mean more energy has to be expended to heat them.
If your house’s insulation is poor, then you could weigh up the increase in the cost of your bill, with the cost of cavity wall or loft insulation. Turning off the heating in rooms which aren’t in use certainly increases efficiency, and having thicker curtains, and double-glazed windows, also helps to insulate your home. Switching bulbs to energy efficient bulbs saves you at least £5 – £10 a year per bulb. LED bulbs today can last many, many times longer than conventional bulbs, The Guardian’s energy correspondent, Adam Vaughan, says that even though they cost on average six times more than regular halogens, LED bulbs can provide a tangible return on investment in less than 2 years.
Often, the best way to keep your bills low is to get frequent energy switch quotes, to make sure you’re choosing the lowest tariffs, and avoiding the more expensive, standard tariffs. Cumulatively, you may see your bill spike because of a combination of particularly cold weather, energy inefficiency around the home, and poorly performing insulation.
You’re paying too much on your tariff
If your bill has increased dramatically, then it may be time to look at tariffs from other suppliers. It’s possible that you’re on a standard tariff, usually set by default by the energy supplier, when the previous owner, or tenants, moved out. Standard tariffs are more expensive, and less tailored to your individual requirements. If you’ve recently moved home, and have discovered that your first energy bill is well over what you’re used to paying, then the supplier may have defaulted you onto an unsatisfactory tariff for your needs.
If you haven’t recently moved home, then it’s possible your supplier has defaulted you for another reason. Sometimes, when your 12-month tariff contract expires, you’re switched by default onto the standard one until you renew.
If your most recent electric bill doubled for no reason, we advise that you check over your bill to see if it indicates you’re being charged the standardised amounts, rather than the cheapest available to you. If you’re on a standard tariff, then switching supplier could lower your bill significantly; possibly by hundreds of pounds a year.
It’s good to get into the habit of checking the fixed rates available for your energy every year before your current contract finishes. In some instances, your energy provider will contact you to say they’re freezing your bills, so they won’t increase them for a number of months. However, bear in mind that this is still bad value, and you’re far better off switching every year to the best tariffs available in your area. Switching tariffs is easier than ever, and you’re only ever a few clicks away from comparing your bill, to the costs of other tariffs online.
You’re no longer paying an estimated amount
Energy companies either take your readings in person from your meter, or estimate your usage. Often, for new homeowners or tenants, an estimated bill will be put in place first. The energy company may then begin to take your readings, and charge you an accurate bill. If you’ve used a lot of energy, then this may give you an unpleasant surprise, especially during the Winter.
Your new appliances are draining your energy
The vast majority of appliances we own like TVs, games consoles, computers and hi-fis, as well as white goods like freezers, washing machines and fridges, run on standby when they’re not in use. It really does add up; some freezers consume 150w an hour, washing machines 50w and TVs 50w. Then there are smaller appliances like routers, Blu-ray players, Sky boxes, some lamps, fans and radios, which all contribute a few watts each per hour through stand-by energy wastage when they’re not in use. One large TV can increase your bill by a staggering £50 a year according to a study named ‘Powering the Nation’. They calculated that stand-by consumption accounts for 7 – 16% of your total energy cost annually. If you’ve moved house, then it’s best to have a look at the white goods in your home, and check their energy consumption ratings. Combined with more TVs in more rooms, extra lights and any other electrical extras, these could push up your energy bill to alarming new heights.
You have a faulty appliance
Although something of a rarity, sometimes an appliance like a freezer will develop a fault that makes it incredibly inefficient. Old appliances can become worn and less energy efficient over time, pushing up your bill up as they run poorly behind your back, without you even being aware of it happening. Freezers are the biggest culprit, especially in Summer, when they’re working harder to keep themselves below freezing. Fortunately, modern appliances are extremely unlikely to wear in a way that would cause a dramatic increase in your energy bill.
Your meter isn’t working
Needless to say, meters don’t last forever, and if your bill is uncharacteristically high after moving, then your meter needs to be checked. Many fitted meters are wearing out, with some even dating back to the 80’s. Older houses are more prone to breaking; it’s extremely rare for a modern meter to break.
Conclusion
It’s highly likely that your increased energy bill is down to your tariff and provider. Energy prices are unpredictable, and standard rate tariffs (which providers give to you by default), can be up to £200 more costly than many other tariffs available. Knowing when your tariff ends, and switching to a cheaper tariff annually is by far the best way to keep on top of your bill, and assure yourself that you’re not paying over the odds. You can switch up to 45 days before your tariff runs out. There are many providers out there, and selecting a cheaper deal is usually far easier than you’ve ever imagined! We can use the power of energy switching sites to take back control of our tariffs, year on year. It makes getting an energy switch quote a simple exercise that can save you large amounts on your next bill-all in a matter of minutes.
Aside from mechanical faults (which are rare, and unlikely to cause a homeowner’s electric bill to double for no reason), the other factors to check when assessing your bill’s increase are: your appliances and your house’s efficiency. Though they don’t tend to account for large and dramatic increases in your bill, they definitely play a part long term, and being aware of stand-by consumption in particular, can save you thousands over just a few years.