How to save on energy bills while staying warm this winter

Power bills are set to soar by up to 25 per cent, but luckily there are several free and easy ways you can cut your energy use without feeling the chill.

Energy experts say you should look around for a better deal every 12 months.

It’s the middle of winter and the cost of heating is set to soar. The Australian Energy Regulator (AER) recently signalled electricity prices will rise 20-25 per cent in July. The good news is, there are several ways households can keep their power bills down without sacrificing comfort.

FREE AND EASY HACKS

Analysis from Energy Consumers Australia shows heating and cooling make up about 40 per cent of an average household’s energy use while hot water heating makes up about 23 per cent.

“Closing doors and only heating or cooling the rooms you are using, and using door snakes or rolled-up towels to block air gaps and stop cold draughts coming in can make a difference,” Energy Consumers Australia’s Interim CEO Jacqueline Crawshaw says. “Hot showers are another big contributor to bills.”

Washing clothes in cold water can help you shrink your energy bills.

But if you aren’t keen to give up hot showers, washing laundry in cold water can also help – as can line drying your clothes.

Canstar Blue utilities editor Tara Donnelly says households can potentially save $160-$300 each month by identifying their “energy habits” and reducing their appliance use.

“Many power companies have apps or features on their website that let smart-metered homeowners track their unique use patterns,” Ms Donnelly says. “Or, just try to be conscious of your actions.”

Setting your heater to the optimum temperature of 18-24 degrees can also help.

“Each degree above the recommended temperature can increase your running cost by up to 10 per cent,” she says.

Source: Energy Consumers Australia.

Finder energy expert Mariam Gabaji says turning off appliances at the switch is “a small habit change that could save you $100 per year.”

But, if you are really struggling to afford your energy bills, don’t be afraid to reach out to your provider for help, says Ms Crawshaw.

“Many people don’t know they have a right as a consumer to ask their energy retailer for help if they can’t pay their bills – and the retailer has an obligation to provide assistance,” she says.

MORE EFFORT BUT WORTH IT

A bit of bargaining can go a long way when it comes to keeping your energy bills trim.

“As a rule of thumb, you should be comparing energy plans every 12 months and switching to a better deal if you can,” says Ms Gabaji.

You can negotiate a better deal with your energy provider or shop around for a new one.

The reference price, or Default Market Offer, is the maximum price energy retailers can charge customers on a default offer plan and can be a helpful point from which to compare.

Ms Donnelly says low-energy users could save by switching to a provider with a lower supply charge.

“There are also a large number of state government concessions on electricity and gas bills,” says Ms Crawshaw. “Make sure that any concession card holder in the household is on the bill, otherwise you may not be eligible for all the rebates.”

Energy prices are set to soar.

Ray Buckley of Draught Proofing Canberra says up to 20 per cent of heat loss in the home comes from air leaks and draughts. He says sealing window frames, cornices and skirting boards can make a big difference to power consumption.

“The thermostat will kick in earlier and keep the room warmer for longer so you won’t have to use as much energy,” he says.

Be aware of your energy use habits.

LONGER TERM STRATEGIES

Insulation can make a significant difference to your energy bill over the long term, says Ms Donnelly.

“A well-insulated home can be as much as 50 per cent cheaper to heat or cool than a non-insulated home, according to Sustainability Victoria,” she says. “Buying energy efficient appliances when you replace old appliances is another big change.”

She suggested using the free online calculators at energyrating.gov.au to compare the 10 year running cost of different appliances.

Jacqueline Crawshaw, interim CEO of Energy Consumers Australia.

“There are rebates in some states too, for upgrading to more energy efficient appliances,” she says.

In terms of heaters, both CHOICE and Finder have found that reverse cycle air conditioners are generally the cheapest option to run, with electric blankets also proving a cost-effective investment.

“This is actually the cheapest option according to our analysis, costing just 14 cents a day to run,” says Ms Gabaji.

Finder energy expert Mariam Gabaji.

Originally published as How to save on energy bills while staying warm this winter