Five Ways To Cut Those Crippling Energy Price Hikes

Inevitably, fuel prices went up just in time for one of the coldest winters on record and at inflation breaking levels to boot. It seems the energy firms are in a constant battle with the banks and The City to be Britains most hated, NPower, Southern Electric, Scottish Power and British Gas all hiked prices on average by 5%. So with remortgage deals at an all time low, it's time for home owners to reclaim their money back and stop lining the pockets of the energy fat cat's, here's a 5 ways to save on ever increasing energy costs.

1 Conserve energy Did you know that £1 in £3 spent on energy is wasted, according to DEFRA? It's all about conserving and not consuming and you don't have to spend hundreds of pounds on insulating your home (though if you can...), swap your light bulbs to energy saving bulbs. 15% of the electricity bill is spent on light, they do cost more up front but long term will save £9 a year on the bill.

Further research, in this instance conducted by the BBC, suggests that by turning your thermostat down just a few degrees could save a huge amount on a household's heating bill. The 2008 report estimated that a household could save 10% on their heating bill for every degree they turned down their heating, that means an estimated £900 million could be saved in Britain alone should every household switch their thermostat down by just one degree.

2 Change your supplier: With the growth in comparison websites, finding the best energy deal or bundle has never been easier. Energy suppliers cannot stop you switching your energy company to save yourself hundreds of pounds annually, so make the most of it.

Leading organisation Which? estimates that 10,000 UK homes change power provider monthly. Switching is easy too, with most suppliers allowing you to do this online. All that is required are bank details and your latest fuel bill. Changing also involves little invasion on your home, you can usually keep your existing system and pipes, so all that really changes is the name of your provider and more importantly the amount you pay!

3 Pay by direct debit: Many people still pay their fuel bill by cheque or card on a quarterly basis. However, you can save a considerable sum by paying for your energy on a monthly basis by direct debit. Most of the leading energy providers will offer discounts if you pay for your fuel monthly by direct debit.

It may well be that there are better deals out there through your current provider, or it may be that switching really is the better option. But either way, checking for deals on direct debit payments is essential as they are always changing their discounts in order to withstand the competitive market.

4 Get a locked in deal: When looking at energy suppliers, see if they do a fixed term contract. Contracts, which are usually a year in length and fix the prices you pay for your electricity and gas for the period of the contract. With prices only going up this may be a way to reduce your cost as an average over the year.

This in essence means you will be shielded from any unforeseen price spikes during the fixed term. The only downside is you won't be able to switch energy supplier if you find a better deal somewhere else while the contract is ongoing.

5 Take a 'dual fuel' contract: If your gas and electricity are currently supplied by two different companies, you may find that you can reduce your bills by opting to take both gas and electricity from the same supplier. These are called 'dual fuel' contracts and companies often offer significant discounts if you take both your electricity and gas through them.

When you add a 'dual fuel' discount to direct debit and the other ideas feature here, you can see the possibility to save a tidy sum on your total energy bills.