WITH an energy price hike looming, consumers are looking to save money on their household bills by being more efficient.
Oli Hall, who lives in social housing in Gosport, said he had made changes to the way he uses energy to cut down on his bills, saving himself more than £500 over a year.
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He pays for his electricity via prepayment, and also has a smart meter display to track his usage throughout the day.
He said: “I believe I’m very lucky to live in a property that is well insulated, so I made it my mission to see where else I could save.
“I knew I could do that through behaviour change. I’ve managed to halve my energy bills from £20 per week to £10.”
How can you reduce your energy usage?
Mr Hall made changes such as turning his heating down, turning lights off in unoccupied rooms, washing his clothes at lower temperatures, and unplugging electrical items he wasn’t using, as well as avoiding putting things on standby mode, in order to save electricity.
These savings allowed him to buy thermal blinds for his windows, which helps keep in the heat and also saves him more money.
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He said being able to see in pounds and pence on his smart meter how his actions were affecting his energy consumption was “invaluable when on a budget”.
What are the disadvantages of a prepayment meter?
Many prepayment meter customers have traditional, or legacy, meters which rely on old technology that means households have to physically top up at a shop or Post Office to stay on supply.
The newer smart meters can be topped up online, so are easier to manage.
Pay as you go (PAYG) typically costs more than a standard tariff, and these customers will see an increase of £708 from £1,309 to £2,017 in April when the energy price cap rises – a higher increase than those on default plans.
Prepayment specialist Utilita, which provides Mr Hall’s electricity, said it had seen a jump in people self-disconnecting from their energy supply as a result of running out of money ahead of the price increases.
This figure would usually stand at 2-3% of its customers at this time of year, but is currently at between 5% and 7%, it said.
Bill Bullen, chief executive of Utilita, called on the government to offer specific help for the around eight million households who use prepayment meters and are facing skyrocketing bills.
He urged ministers to focus on specific help, rather than rely on its plan to give all households a one off £200 rebate on their energy bills which must be repaid over the course of five years.
Customers can be asked to be moved off their prepayment meter but suppliers will not usually replace a meter when customers are still in debt to them.
Coming off a prepayment meter is also not free of charge. Suppliers will run a credit check for the move and could also charge between £150 and £300 for a deposit.
Gillian Cooper, head of energy policy for Citizens Advice, said: “If you’re struggling to top up your meter, contact your energy supplier to find out what support they can offer you.
“This could include giving you temporary credit or reviewing any debt repayments on your meter.
“They may offer you a smart meter, which makes it easier to manage top ups and can enable your energy company to provide better support.”
How can I save money if I’m on a prepayment meter?
Prepayment meter specialist Utilita, which provides Mr Hall’s energy, said it has 830,000 customers whose energy usage is 11% lower than the average household, as they are able to use smart technology to monitor their spending.
While Utilita acknowledged the increase in costs expected in April is a lot of money for hard-up households, it said customers – especially those who use smart meters – could actually save money.
It said enabling customers to pay up front, and then giving them the tools to see their energy consumption, means they can budget better.
They avoid the shock at the end of the month or quarter when a bill is higher than they were expecting.
Where can I find help if I can’t pay my bills?
If you are struggling to pay your energy bills, there is help available.
You can check which benefits you’re entitled to using charities including Turn2Us, which provide a free service.
Energy suppliers also have hardship funds to help those who are struggling, so contact your supplier to find out if you are eligible.
There are also cold weather payments if it gets really chilly, and the warm home discounts or household support funds which may also help.
The government has also announced a £150 council tax refund targeted at low and middle income earners.
It’s not directly aimed at lowering energy bills, but is designed to relieve some pressure off household finances, as council tax bills are also set to rise in April.
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