Everything seems to cost more than it should at the moment, with energy bills joining the increasingly long list of things that are going up.
With an expected increase of up to 18% from next month, rising energy prices may worry households going into winter – especially those already struggling with the cost of living. But there are a few things you can do to lower your bills.
Here are some simple hacks for your home that can help keep your power bill down.
Check your tariffs
“The first tip is to find out what electricity tariff you’re on,” according to Canstar Blue’s energy editor, Jared Mullane.
“There are a few different types. They’ll either be a single rate or a time-of-use tariff.”
If you’re on a single rate tariff plan, there are no peak or off-peak periods, meaning you pay the same rate at whatever time of the day you are using energy.
A time-of-use tariff means the price of power changes throughout the day, depending on if it’s a peak demand period or not. You can check which tariff you are on by looking at your bill.
Making sure you’re on the right one for your household is key to saving money, Mullane said.
“For example, if you are on time-of-use, you probably want to limit or shift as much of your power consumption away from peak times, which is usually weekday afternoons, when people get home from work and school,” he said.
Insulate – not just for homeowners
Heating and cooling make up about 40% of your electricity bill, so it only makes sense that effective insulation saves you money.
“We know that good insulation is pretty much the best thing Australians can do to improve their energy bills and live more comfortably,” Lynne Gallagher, the CEO of Energy Consumers Australia, said.
“But we also know that not everybody can afford the upfront expense, and renters particularly are often saddled with poorly insulated homes.”
Insulating your home properly can cost up to $15,000 and, for renters it’s out of the question.
Throwing rugs over tiled areas, using heavy curtains, and door snakes and sealing any draughts with proper draught tape will help keep you warm and save you money.
“While they may seem small, these hacks can make a big difference,” Gallagher said.
Only use heaters when necessary
If you are cold and uncomfortable, put the heater on. But make sure it’s not running when you’re not in the room or overnight if you don’t need it.
“Depending on what sort of heater you have, generally they consume a bit of power to run,” Mullane said.
“Especially if they are left running. Even those little ones, [the ones that cost] $25, they can be power guzzlers.”
Use appliances properly
Vampire appliances are the ones around your home that continue to suck power when they’re not in use. The TV, the kettle, microwave, and gaming consoles are all vampire appliances.
If you’re not using it, make sure it’s off – it can save you $100 each year.
Mullane said also making sure you’re using appliances properly. Don’t run the dishwasher unless it’s full, and make sure your washing machine is full and on the eco setting to help conserve power.
“Another big one – try and avoid the clothes dryer,” Mullane said.
“Obviously, if it’s bucketing down rain and you have limited space you might not have any other option, but try to hang your clothes on the line if possible. They use quite a bit of power.”
Don’t pay the default price
“This is probably the most timely one given the fiasco with the energy market,” Mullane said.
The default offer or the reference price is the maximum amount an energy company can charge customers and is set by the Australian government.
Some customers are still paying the full amount when there are better deals available elsewhere, Mullane said.
“Generally, if you haven’t changed [power companies] in a few years you get shifted into default power plans and you end up paying the maximum a retailer can charge you, which isn’t ideal.
“It does add up, it’s hundreds of dollars in savings per year between the cheapest market offer and the default.”
If you are having problems paying your bill, ask for help
If you’re still struggling to pay your bill, call your energy company for help and a payment plan, Gallagher said.
“Don’t wait until you are paying late fees, at risk of disconnection or rationing your energy and impacting your health. By law, they must offer you a plan to pay off your bills in a way you can afford.
“If you are concerned with the payment plan your retailer has offered you, ask them to change it and then ask to go on their hardship program.
“Hardship programs provide a much greater level of support and protection than payment plans.”
