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Watchdog WednesdayBBC

Watchdog On Three: The ultimate guide to saving hundreds on your energy bill

We know, we know – you’ve heard it all before: the weather’s turned and there’s a chill in the air. Autumn is here. You've packed away the summer clothes and dug out those winter togs. Now it’s time to look at changing your energy tariff to save those extra pennies. YAWN.

There are lots of price comparison sites out there and every year we’re instructed that we must make the most of them – and any other tools out there - to make sure we get the best deals on energy.

But how many of us actually get around to using them? Not enough of us it seems.

Two thirds of householders pay too much for their gas and electricity because they haven’t changed supplier recently. Instead of taking advantage of new, better deals they’re stuck on standard tariffs.

It gets worse. If you’re a renter, you’re likely to be one of the 77% of people who never changes energy company, and is definitely paying too much.

By switching, you could potentially save hundreds of pounds, which, incidentally, could buy you a holiday in the Canaries… nice and warm there at this time of year.

Kieran JonesKieran Jones

So why aren’t we jumping at the chance to spend less on our bills? For a start, energy tariffs can feel incredibly convoluted.

Kieran Jones, 29 years old, owns a three-bed end of terrace in Norwich. He switched from First Utility to Avro Energy in July. Kieran tells Watchdog, "It’s not like buying petrol where you just look at the price on the board at the petrol station. There are standing charges, cashback possibilities, direct debit discounts. It’s not that straightforward."

Many of the price comparison sites can help make it simpler. There are loads to choose from including uSwitch, comparethemarket, Which? and mymoneysupermarket. Bear in mind, though, that some of these companies take commission from energy companies. There are also companies which charge you for their service if they save you a certain amount, but don’t take commission. There’s even a smartphone-based switching service too. Whichever service you choose, it’s highly likely they’re going to find you a better deal than what you’re currently sitting on.

KieranKieran Jones

Kieran used a company called Flipper to help him switch supplier. He saved a massive £317 on his yearly bill. He says, "I was very happy to save the money. It’s a lot. Our energy price is very important because we have an electric car. Having a cheap energy tariff isn’t just a case of saving money on TV usage, but it makes it cheaper to get to work."

But what if you’re renting?

Victoria Price, 28, also from Norwich, moved out of her family home into rented accommodation with her friend last year. It was her first time taking charge of household bills. She wanted to try and bring down the cost of their energy bill.

Victoria PriceVictoria Price

"It wasn’t something I was looking forward to sorting out. I didn’t want to spend my evenings looking at different tariffs. I thought it was going to be a complicated process and that there’d be problems with direct debits coming out at the same time, and that I’d have to keep calling the companies to sort it out." A friend suggested using a price comparison website.

"In reality, it was really easy to switch. I went on uSwitch’s website, had a look at the deals and chose the provider I wanted to switch to. I received a letter that informed me what was happening, when it was happening and when I needed to provide a meter reading. It was very simple." Victoria saved £199.32 on her yearly bill.

VictoriaVictoria Price

Claire Osborne, energy expert at uSwitch.com tells Watchdog: “When you are living away from home for the first time, or starting out in your career, every penny counts and so it’s a shame to see that young people rarely benefit from the significant potential savings available by switching energy supplier. Particularly as in other areas of life they are incredibly savvy and aren't afraid to ask for more for their hard-earned cash.

“This often can be down to urban myths or a lack of awareness. For example, many renters think they need the landlord’s permission to switch their energy supplier, when they don’t."

Renters’ rights

If you pay your energy supplier directly, then you have the right to switch. But note, you may have to return your account to the original supplier by the end of your tenancy. If your landlord pays the bill, you don’t have the right to switch supplier and would need to ask him/her to do it. Ofgem, the energy regulator, has set out specific guidance regarding tenants’ rights to switch.

Tips to reduce your bill

  • Use energy saving lightbulbs
  • Use draught excluders under your doors
  • Use a chimney pillow to stop heat disappearing up the chimney. Forty percent of heat in a room can disappear up the chimney
  • Turn your thermostat down by one degree
  • When you’re sitting on the sofa in your t-shirt and get up to turn the heating on or up coz you’re cold – put on a jumper instead. It sounds obvious because it is!
  • Wash your clothes at 30-40 degrees
  • Unplug devices that you don’t use regularly. Leaving them plugged in, even if you’re not using them, uses energy.

What do the Energy companies say?

Lawrence Slade, chief executive of Energy UK, said: “I urge everyone to spend a few minutes to make sure they are on the best deal before winter hits. Join millions of people that have already saved hundreds of pounds so far in 2016. Deals are coming to an end every month so don’t miss out on over 100 deals under £1,000. The energy market is more competitive than it has ever been. With over 40 suppliers in the market and with the Energy Switch Guarantee in place, customers should reap the benefits.”

Winter is coming. You’ve been warned. Be smart. Switch.

If you have a story you think we should be investigating please contact us at watchdog@bbc.co.uk