How to slash your power bill

SERINA didn’t think it would be so easy to put hundreds of dollars in her pocket, but it was. That’s $550 she didn’t have a few minutes ago.

LAST winter I vowed to slash my power bill. How did I go? My last electricity bill showed my energy usage was nearly half that of other households nearby. And my energy bill was several hundred dollars lower than I expected. I achieved this by making some small yet profound changes. Here are some of my key tips:

NEGOTIATE A BETTER DEAL

“Can you really ask for a better deal on your energy bill?” someone asked me recently? Hell yes. Energy providers compete with one another for customers and they do not want to lose your business. You can leverage that by demanding a better deal. Pick up the phone and say these key words: “I am looking at my options and comparing products, and I am wondering if you could please offer me a better deal?” I saved 12 per cent off my annual energy bill in return for agreeing to sign a new 12-month contract. While proud of this achievement, I now know I could have saved even more. Savings = around $160-180 per year.

COMPARE DEALS

Is your provider giving you the best deal? How would you know? Compare products at the Australian Government’s Energy Made Easy website. I wish I had known about this site earlier. I just went online and compared. It is quick and easy as long as you have your latest bill in front of you. I was surprised to discover that I could have saved even more than 12 per cent — up to an estimated $190 per year with another provider (who I didn’t even know operated in my area). The best deals require commitment to a contract, and break fees may apply.

The Simple Changes I Made to Slash my Power Bill.

SET UP A DIRECT DEBIT

Many retail energy companies offer discounts for people who pay by direct debit. My provider offers a discount of $20 annually. This might not seem like much, but it is easy money — especially as it also saves you time and helps you budget better.

TAKE SHORTER SHOWERS

Or shower at work, or with a friend — whatever works really. Generating hot water requires a lot of energy, which is why the average household spends up to 25 per cent of its energy costs on hot water. Being mindful of water usage and reducing time in the bathroom can dramatically reduce your energy bill. Savings = around $120 a year.

ONLY BOIL THE WATER YOU NEED

How many times a day do you boil an electric kettle full of water? How often do you fill it right up, and then forget to use it? It costs around six cents to boil a full jug and two cents to boil a jug that is only filled to the minimum (assuming costs of 31.31 cents per kilowatt hour). If you used your jug four times a day, you could save almost $120 in a year by only filling it to the minimum. Reduce the amount of times you turn on your kettle even more by filling up a Thermos with excess hot water.

Serina Bird has found some easy ways of saving money.

DRAW THE CURTAINS

In super cold (or super hot) weather the best way to insulate your home is to make it like a well-insulated cave. Keep the heat in (or out) by shutting your windows and external doors, drawing the curtains or closing blinds. This works best with thicker, thermal-backed curtains. Double-glazing is also energy efficient, but it is an expensive option for many people. (Note: this assumes it is so hot that you need to have the airconditioner running and you cannot use the benefits of a good cross-breeze.)

SWITCH THE AIRCON OFF

In extreme high temperatures, such as those we saw in NSW during March, many of us turn to the airconditioner for comfort. But operating a reverse-cycle airconditioner throughout your home is one of the most expensive cooling options. You can reduce costs by setting it on a higher temperature, ideally 25C or more. Or you could spend the day somewhere else that is airconditioned, such as the cinema, shopping centre, an art gallery or even a library.

RUG UP IN WINTER

If you are wearing a T-shirt inside, then it is too warm to turn the heater on. Rejoice in the cooler weather. Lounge around in your flannie pyjamas, or proudly wear that hand-knitted jumper your Nana made for you. Curl up on the couch with the love of your life (cosy rug optional). Dig out a hot water bottle and cuddle it while Facebooking friends. There are many ways to feel warm and cosy that do not involve reaching for the heater. Savings on the last three points are around $100 as I’ve easily cut down on my usage.

My total savings are around $550. I could have saved an extra $190 if I’d known about the energy made easy website earlier. But the steps I’ve taken have made a huge difference.

Serina Bird is a money blogger and writer. She is passionate about saving money, and writes at Ms Frugal Ears.