Energy bills are falling to their lowest level in three years, but millions of households are not making the most of the summer’s low gas and electricity prices
Despite winter usually being considered the killer when it comes to energy bills, summer can often still feel like a mission to get through. As a result, we’re always looking for ways to cut those costs down.
It comes as the new energy price cap set by Ofgem is at its lowest level in three years at the start of this month, offering hope to the millions of people across the country who continue to struggle with the eye-watering cost of living. While this cap is now set at £1568 for the typical dual-fuel household, this is not a cap on your total bill but the price per unit of energy.
This means that finding ways to save energy during the summer months could drive down your bills even further, potentially saving hundreds and finding some much-needed financial breathing room. Thankfully, with utility bills now half what they were in January of 2023, when families were paying a bank-breaking average of £4279 per year, anyone who makes the most of the low price could feel significantly better off.
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As the cost of gas and electricity falls sharply, many suppliers have started to offer a variety of deals to entice more customers, meaning that many people could benefit from shopping around. We spoke to energy bills expert James Longley, to find out three of the key ways to make the most of this summer’s low energy tariffs.
Should I stick or switch?
James Longley, from energy-switching firm Utility Bidder, said: “Fixed rates, however, help give customers peace of mind and provide lots of choice in terms of start and end dates; this is coupled with exit fees and the lost benefit of falling energy prices when you are already under contract.
“Recent projections indicate that the price cap will go back up 4 per cent to around £1,630 in October, and a similar rate could be in place for the start of 2025. Of the major energy companies offering fixed rate deals at this current time, all offer fixed deals to existing customers, with a large majority offering incentives to new customers as well.”
So, many consumers might want to consider locking in these lower summer prices with one of the utility providers offering a fixed deal for the next 12 months. Currently, firms like Octopus Energy are offering 12-months at the current lower rate, with no exit fees, with some like Ecotricity offering up to nine per cent below the April cap, but requires a smart meter
Get the cheapest rates
But many will also want to build up credit, or keep their bills low, while the weather is milder and the days longer. Keeping the heating off and finding ways to lower your power usage can be key to saving money, though it is worth remembering that standing charges will still add almost £1 a day to your bill.
“Whatever your next cause of action, electricity and gas users should try, where possible, to limit their usage during peak hours of the day,” Longley explains, adding: “Using any utilities throughout the night will prove cheaper, and you can set timers for appliances such as dishwashers.
“Other lifestyle changes which you will reap the benefits of include minimal tweaks such as switching your appliances off when you’re not using them, rather than leaving them on standby, or more long-term solutions include removing your gas boiler or installing solar panels.”
Maximise airflow
The perennial problem with most homes in the UK is that they are too warm in summer and often struggle to keep in the heat over winter. But leaving all your windows open is not the best way to keep your home cool, but your bills low.
James explained: “As temperatures continue to rise this summer, UK residents may be partial to opening all windows, however, the more windows left open, the more hot air from the outdoors that can enter your home.
“Just like in winter cross-ventilation is key, and we advise opening different windows around the house in small doses which will let any breeze flow through; also, the later at night it is, the more windows you can then open ready for a cooled home to wake up in.
“Cold fans are also a great addition. These can be utilised in rooms you are occupying, but leaving them on in unoccupied rooms should be avoided, as these appliances move air around and don’t actually cool it. It is also important to note that lowering your thermostat drastically doesn’t cool your home faster.
“Air conditioning units won’t typically operate at a consistent pace and lowering your thermostat as low as possible will just mean it is working for longer. Instead, you should gradually lower the temperature in small bursts until you hit the sweet spot you want.”
