Power bills got you sweating? Stay warm without spending a fortune

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As I write this on a frosty Melbourne morning, the mercury has dipped below 3 degrees, prompting the ritualistic donning of black puffer jackets and a sharp spike in the number of people working from home. I’ve heard it’s also quite cold in Sydney but, frankly, whatever goes on north of the Murray River is none of my business.

As temperatures plummet and power prices soar, it may be time to reconsider your energy provider. Credit: Michael Howard

Scientists have also discovered that cold weather is often associated with thoughts such as “oh my god I’m never going to be warm again” and “can I do everything I need to get do today from bed?” It can also see many of us crank our heating up to ridiculous levels, which is great for short-term relief but bad from a power bill perspective.

This is especially problematic for those of us with large or poorly insulated houses (so, basically, all of us, as 80 per cent of Australian houses have a two star or less energy rating).

What’s the problem?

To make matters worse, energy prices are on the up. Power prices are set to rise by up to 9.7 per cent in NSW and 5 per cent in Victoria from July 1, after the market regulator announced its latest round of annual price setting. These rises are just an estimate too, as calculations by Canstar show that over the past six years, 67 per cent of the actual prices ended up higher than the proposed price. All in all, it’s shaping up as a bad year to be cold.

What you can do about it

So if the chill is creeping a little too much for your liking (and it’s only June!), here are some moves you can make:

• Shop around: You can put on as many jumpers as you like, or stack on three more blankets, but nothing will save you as much money as jumping ship to a new energy retailer. Comparison expert at iSelect, Sophie Ryan, says everyone should get on the front foot now and check how your current energy offer stacks up – including what your service and supply fees are. “While power prices may be higher across the board and will increase further for many homes from July 1, there are still differences between retailers and plans, and even a small price difference could make a big difference to a quarterly energy bill,” she says. It’s a common misconception (and something that I ramble on about all the time) that loyalty pays, but it doesn’t. Your energy provider owes you nothing, and vice versa, so if another one is offering a better deal (even if it’s just a one-off for new customers), go get it. The government even has a free, independent energy price comparing tool which you can access here.

• Do some spring cleaning: If you’re going to be running that heater (and let’s face it, you will), you’ll want it to be at peak performance, and after six months without use it might be a little dusty − literally. “A full filter in your dryer, your air conditioner – even the coils in the back of your fridge will slow down the efficiency of your appliance and burn through more energy,” says Sally Tindall, data insights director at Canstar Blue. She recommends investing in an energy monitor, which can be bought for $20-$30, to track what appliances in your home use the most power. By and large it will be the usual culprits – fridge, washing machine, etc – but you might find something that’s more power hungry than you thought.

• Seal it up: As mentioned, Australian houses have roughly the insulation of a tent, but that doesn’t mean you can’t make them slightly less tent-like. Wait for a windy day and go hunting for draughts, which you can then fill with gap filler or foam insulation strips. Chimneys are a prime culprit, but a custom cut piece of foam can be a cheap way to stop draughts temporarily. Heavy blinds can also be a good way to keep heat in around windows, but a more effective (and also more renter-friendly) option is window film, which you can purchase from hardware or home improvement stores. These are sheets of clear plastic that stick onto your windows to imitate the effect of double-glazing, and are easy to apply and remove as needed. Bubble wrap can also serve the same purpose, if you’re willing to sacrifice some visibility.

• Time your power usage: Finally, not all electricity is made equal. When it’s sunny and bright, renewables flood the market and make energy cheaper, and many retailers offer flexible plans that allow you to take advantage of this, according to EnergyLocals chief executive Adrian Merrick. “There are lots of tariffs in the market that offer time-of-use plans with cheap rates during the middle part of the day,” he says. “If you have the ability to shift energy usage into that period, maybe through putting washing or drying on before you go to work or charging your EV, it can make a real dent in your bill.”

Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.