How to save money by going greener – Series 1 – Compare the costs of energy suppliers

Rising energy prices have helped to contribute a further contraction of household disposal income in the last 12 months as energy companies continue to pass on rising raw material costs to consumers. With prices set to rise be a reported 38% we have looked at some potential money saving tips to help reduce your current fuel bill.

The wholesale price of natural gas has more than doubled in the last 12 months and in February energy companies passed on a 15% increase to the cost of gas for consumers, with many companies increasing the cost of electricity by the same amount. According to Energywatch, since 2003 British Gas customers have since seen their annual bills go up by 76.7% for gas (from £370 to £653) and by 74.3% for electricity (from £237 to £413). Unfortunately the trend looks set to continue.

But what can you to decrease your fuel bills?

Firstly you can check an online comparison site such as USwitch.com that will enable you to Save Money on your Electricity Bill to determine whether or not you can reduce your annual heating bills. Suppliers will produce discounts for combining the purchase of electric and gas bills with 'duel fuel' options. In addition many leading power companies will offer a discount from taking an internet-only rate, which produces paperless billing.

Green energy options

Three years ago, switching to a green electricity supplier meant paying a significant price premium, but now many electricity companies are offering ‘green’ tariffs – although the quality, availability and price of these vary significantly. There are three significant types as explained by www.greenelectricity.org below: -

Green Supply – with this type of tariff the electricity company ensures that for every unit of electricity you use, a set proportion of green electricity is generated.

However, as supply companies have a Renewables Obligation set by Government to supply a minimum level of renewable electricity (currently around 7%) some companies use the renewable electricity they sell as a ‘green’ tariff towards meeting their own Renewables Obligation or, through certificate trading, to allow other suppliers to meet theirs. The net effect of this is that although you are getting more renewable electricity, everyone on standard tariffs is getting less.

Green Fund – with this type of tariff the electricity company invests some of what you pay on your bill in new renewable energy projects.

However, many supply companies have already made a decision to invest in renewables, to ensure they can meet their Renewables Obligation or for other commercial reasons, so signing up for their ‘green’ tariff might not have any real effect, except perhaps to boost their profits.

Carbon Offset Tariff – with this type of tariff the electricity supplier purchases carbon emissions on your behalf and offsets all, or a portion, of the carbon emissions resulting from generating the electricity that you consume.

These carbon emission offsets could be from renewable energy projects built in developing countries, for example, or from planting tress in the UK, or perhaps even from the EU Emissions Trading Scheme. It is important to check the source of carbon offsets being used by the supplier.

While offsetting carbon is better than not, it is better still to source your electricity from low-carbon renewable sources.

Building wind farms

Ecotricity is one such green electricity supplier that supplies Rickmansworth. Recommended by the Soil Association and WWF, Ecotricity have been building wind turbines and selling electricity across the country since 1996.  They take the money their customers spend on electricity and invest it in clean forms of power like wind energy. In 2007 alone they have been said to have invested £25 million in wind energy. Ecotricity have two energy tariffs: New Energy and New Energy Plus the tariffs http://www.ecotricity.co.uk/energychoice.html

Another method of conserving energy is by placing reflective paper behind a radiator which helps to reflect heat back into the room. Other methods of heat preservation are ensuring you have suitable draft excluders under doors and even in letterboxes.

1. Turn your thermostat down. Reducing your room temperature by 1°C could cut your heating bills by up to 10 percent. You could save around £40 per year.
2. Is your water too hot? Your cylinder thermostat shouldn't need to be set higher than 60°C/140°F.
3. Close your curtains at dusk to stop heat escaping through the windows.
4. Always turn off the lights when you leave a room.
5. Don't leave appliances on standby and remember not to leave appliances on charge unnecessarily.
6. If you're not filling up the washing machine, tumble dryer or dishwasher, use the half-load or economy programme.
7. Only boil as much water as you need (but remember to cover the elements if you're using an electric kettle).
8. A dripping hot water tap wastes energy and in one week wastes enough hot water to fill half a bath, so fix leaking taps and make sure they're fully turned off!
9. Use energy saving light bulbs. Just one can save you £60 over the lifetime of the bulb - as they last up to 10 times longer than ordinary lightbulbs.
10. Do a home energy check. Just answer some simple questions about your home and Energywatch will give you a free, impartial report telling you how you can save up to £250 a year on your house hold energy bills.

In addition another method of conserving energy is by placing reflective paper behind a radiator which helps to reflect heat back into the room. Other methods of heat preservation are ensuring you have suitable draft excluders under doors and even in letterboxes.