With Ofgem’s Energy Price Cap set to rise again next month, many may be searching for ways to help save some money on bills.
New data from personal insolvency provider, Creditfix, found those in arrears with energy providers have seen their average debt levels skyrocket in the last two years.
Analysing its customer database of 185,000 people, Creditfix found those where the main creditor is one of the ‘big six’ energy providers, the median debt increased from £761 in 2021 to £1,083 so far in 2023 – a 41 percent increase.
The new energy price will rise by five percent on January 1, taking the annual price for a typical duel-fuel household up from £1,834 to an average of £1,928.
This comes at a time when, according to Creditfix’s Personal Debt Index, average debt levels across the UK currently stand at £18,040 – a 19 percent increase from £14,943 in 2022.
To help ease the financial burden, Maxine McCreadie, personal debt expert at Creditfix, has compiled a list of six top tips to help those worried about their energy costs to cut down and save.
Switch to LED lighting
According to Ms McCreadie, replacing incandescent bulbs with energy-efficient LED lights not only significantly reduces energy consumption, but also lasts up to 40 times longer.
Seal leaks and insulate
Properly insulating the home and sealing any gaps in windows, doors and ducts can prevent air leaks, which will reduce the need for heating.
Ms McCreadie said: “Using your hand is a cost-effective way of checking whether you have an air leak, simply place it near the edges of doors, windows and vents and if there is a cool breeze, then there’s an air leak.”
Set thermostats smartly
By using smart thermostats, Ms McCreadie said: “You can easily regulate your heating by adjusting temperatures and the times they come on and off with ease.”
Unplug unused electronics
Even when turned off, many electronics still consume energy. Ms McCreadie said: “The average LCD television consumes up to 5W when on standby mode.”
Research by British Gas revealed that UK households could save an average of £147 on their electricity bills each year by switching off “vampire electronics”.
Wash clothes in colder water
Washing clothes at a colder temperature boasts a range of benefits, according to Ms McCreadie. She explained: “Not only does a colder wash mean less risk of damaging the fabric of your clothes but washing your clothes at cooler temperatures can also help keep your energy bills down and make your clothes last longer.”
Conduct an energy audit
A professional energy audit can identify specific areas for improvement and help people become more energy-efficient in the long run.
Ms McCreadie said: “Saving energy is not only an environmentally responsible choice but also a smart financial decision, which is crucial in the current macroeconomic climate to stay on top of bills and reduce the risk of falling into debt.
“While we know that it can be overwhelming, taking those first steps to address money worries can be a huge relief – never underestimate the power of talking and sharing your problems.”
