Energy bills continue to be a big concern for many households, but there may be ways you can save money.
In this guide we’ll show you how you can save money on your energy bills. We’ll explain why your bill may be high, include energy saving tips, tell you how you can switch supplier and how to claim a refund if you’re in credit on your energy bills. In the article, we’ll cover:
Why is my energy bill so high?
How to save money on your energy bills
Why is my energy bill so high?
Energy bills are not as high as they were in 2022 and 2023, but they are still high. Most people’s energy bills are linked to the energy price cap (which we explain in more detail later in this guide), but that doesn’t set a limit on how much you’ll be charged by your energy company.
Some energy companies let you compare your energy usage with those of other customers living in a similar property. So you may be using more energy compared to ‘similar’ customers, or just have a sense your bills are too high.
There may be several reasons why your energy bill is so high:
- Estimated bills. If you don’t have a smart meter and you don’t give your energy supplier monthly meter readings, it’s likely that your energy bills will be based on estimated meter readings. These could assume that you use more (or less) energy than you actually do. To get accurate bills, you should submit regular meter readings to your energy company (unless you have a smart meter).
- How you pay your bills. If you pay your bill when it arrives, it’s worth knowing that this is the most expensive way of paying a bill, if you are on the standard tariff. Paying by prepayment meter or direct debit are cheaper ways of paying for your gas and electricity if you’re covered by the energy price cap.
- Variable tariffs. Most households in the UK are on variable tariffs for gas and electricity. This means that prices go up and down in line with the energy price cap. The energy price cap is reviewed every three months, so your energy bill this year could be quite different to last year’s, even if you’re using a similar amount of energy.
- Old appliances. You may have an appliance that’s using more energy than a modern one would, or that’s faulty. If you suspect one of your appliances is using more energy, try turning off all your other appliances and check your energy meter to see how much energy it’s using.
- Faulty meter. Most gas and electricity meters accurately measure how much energy you’ve used, but they are not foolproof. If your energy bills increase unexpectedly or you’re paying a lot more than you think you should for the type of house or flat you live in, it could be because you have a faulty meter. Citizens Advice has a guide on what to do if you think your meter is faulty.
- Meter mix up. In rare cases, energy companies may mix up your meter number with someone else’s. Tell tale signs of this are when you’re being billed by an energy company that’s never supplied you with energy or, if you’ve recently moved into a new home, and your bill is far higher than you would expect.
- If you’ve recently moved home. Your new home may be less energy efficient than your old one, or you may be with a more expensive energy provider. If that’s the case, you may be able to switch to a cheaper provider.
Energy saving tips
It can be hard to know if you’re wasting energy, although if you live in a house or flat that’s poorly insulated, you may be aware that energy you’re paying for is disappearing through the doors, windows or walls.
You may be using these energy saving tips already, but if not they could save you money.
- Don’t heat rooms you don’t use. If you have central heating, it can be worth fitting thermostatic valves to radiators. You can turn these down or switch them off entirely, in rooms you’re not using.
- Avoid blocking your radiators. If you have a sofa or chairs in front of your radiator, they will get nice and warm but you may not! Try and move furniture out of the way of radiators, if you can.
- Fit reflector panels. Foil reflector panels fitted between the radiators and the wall can help ensure that more heat stays in.
- Turn your boiler flow temperature down. This isn’t the same as turning your thermostat down. If you have a combi boiler, you can turn down the temperature of the water leaving the boiler and filling your radiators to 60 degrees or below. There’s a step-by-step guide on how to do this on the MoneySavingBoilerChallenge website.
- Draught-proof windows and doors. This could involve hanging a thick curtain behind your door, fitting draught excluders to windows or buying a draught cover to cover keyholes.
- Use energy-saving wash programmes. You can cut costs by washing your clothes at lower temperatures and/or using ‘eco’ programmes.
- Improve your insulation. If you have a loft, make sure it’s well insulated. Experts recommend 27 cm of insulation and 8 cm of insulation on hot water tanks.
- Save energy on cooking. Using a slow cooker, air fryer or microwave rather than your oven can save money.
- Heat yourself rather than the room. Using an electric blanket or throw can be cheaper than heating the whole room.
- Turn down your thermostat. Experts recommend setting your thermostat to between 18 and 21 degrees. If yours is higher than this, consider turning it down. Don’t have your setting too low, though, especially if you have health issues or poor circulation.
How to save money on your energy bills
If you don’t think your energy bills are high because you’re using too much energy, then here are some ways to save money.
Check if your direct debit is too high
If your energy bills are based on estimated meter readings then your direct debit may be too high. However, even if you send in regular readings or have a smart meter, your direct debit may be higher than it needs to be. It is a good idea to keep a buffer of credit on your account as you head into the winter, as you will use much more energy.
However, if you think your direct debit is too high, ask your energy provider to reduce it. There are rules that say energy suppliers must be able to justify the level of a customer’s direct debit and any increase. Citizens Advice has a guide on what to do if your energy supplier has increased your direct debit.
Claim a credit refund
If your direct debit level is set to pay for more energy than you’re using, you may be in credit. You can ask for a refund, providing you give your energy provider an up-to-date meter reading. Bear in mind that you may not get a refund of the full credit amount. Some suppliers require you to have a certain amount in your account and may increase your direct debit payment if you insist on a full refund. Find out more about claiming back credit from your energy supplier on the Citizens Advice website.
Shop around for a cheaper tariff
Another way to save money on your energy bills is by switching to another energy provider, or to a cheaper tariff with your existing provider. If you are happy with your existing provider, start by asking if they have a cheaper tariff for you. The rules and regulations say they must give you this information.
To switch to a new tariff, you should contact your energy supplier and they can arrange it for you (or you may be able to do this via the energy provider’s app or online). They should also tell you if there are any exit fees on your existing plan, which are sometimes charged on fixed-price energy deals.
If there’s no cheaper tariff for you or you’d like to see what else is on offer, then there are several price comparison sites that will tell you the cheapest deal based on where you live, how much energy you use and who your existing supplier is. The energy regulator, Ofgem, has information on switching and a list of accredited price comparison sites.
Understanding the energy price cap
The energy price cap limits the amount that energy companies can charge for energy if you’re on the standard tariff. It is set by the energy regulator, Ofgem and it changes every three months. It caps how much your energy provider can charge you for a unit of gas or electricity, and for the standing (or daily) charge. However, the energy price cap doesn’t limit the size of an individual customer’s bill.
Although the price cap doesn’t limit a customer’s individual bill, it’s often quoted as a yearly figure for a ‘typical household’. You can find the current energy price cap on the Ofgem’s website.
Where to get help with energy bills
If you are struggling to pay your energy bills, you may be able to get help from your own energy provider, from the government (through state benefits) or from a charity, such as Turn2us (which is our charity partner).
Help from your energy supplier
If you’re struggling to pay your energy bills, contact your energy provider. Under the rules, they have to work with you to try and agree a payment plan. This is designed to give you time to pay off the money you owe, alongside your bill. If you don’t contact your energy provider, they may threaten to disconnect your supply.
A number of energy companies also have their own funds which may be able to help if you’re a customer and are in debt with your energy bills. British Gas has an Energy Trust which can help both its own customers and people who don’t get their energy from the company.
You may need to have taken debt advice (from a debt advice charity, such as Citizens Advice, StepChange or National Debtline) before you can get help from these funds.
Winter Fuel Payment
The Winter Fuel Payment is worth between £200 and £300 and you can get this if you’re old enough to get your State Pension and you are able to claim Pension Credit. Pension Credit is a means-tested benefit that’s aimed at pensioners on a lower income. The Gov.uk website has information about the Winter Fuel Payment, including who can get it. You can find out more about Pension Credit, including how to claim it, in our guide.
Warm Home Discount
The Warm Home Discount is a scheme which provides a discount of £150 on your electricity bill for people who qualify. You don’t receive the money as a cash payment, but rather as money off your bill. The scheme operates in England and Wales. Scotland has a separate scheme for people on a low income.
You can qualify for the Warm Home Discount if you’re on the guarantee element of Pension Credit (which means you must be over State Pension age). You can also get the Warm Home Discount if you’re of working age, on a lower income and getting certain benefits. Most energy suppliers are signed up to the scheme, but some companies only offer it to customers who are over State Pension age.
If you are under State Pension age, get the Warm Home Discount and are thinking of switching your energy supplier, check that the company you’re considering switching to offers the Warm Home Discount to working age customers. you can check which suppliers are part of the Warm Home Discount scheme on GOV.UK.
Grants and financial help
You may be able to get other financial help with your bills, such as a grant, for example, but it is likely to depend on a range of factors, such as where you live, whether or not you have savings and/or your income level. The charity Turn2us has a grant search tool on its website. Turn2us also has a free to use benefits calculator on its website, which will tell you if you’re entitled to claim state benefits.
If you need help with other debts, contact the company you owe money to or a debt advice charity. A debt advice charity will give you free advice about your debts. You can find out how to get free debt help on the MoneyHelper website.
