How to Manage Gas And Electricity Bills Successfully

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Energy is expensive and saving it has real financial benefits, it starts with both your gas and electricity bills.

According to the U.S. Department of Energy, America’s 115 million residences collectively use an estimated 22.5% of the country’s energy output and the typical family spends $2,200 a year on utility bills.

We will talk about different methods you can implement to save yourself some cash when it comes to these energy bills.

What Are Utility Bills?
Tips to Lower Your Electric, Gas And Water Bills
10 Ways to Save on Gas And Electricity Bills
Will Energy Prices go Down 2021?
What Cost The Most in Your Electric Bill?
Is it Cheaper to Pay Gas And Electric Bills Monthly?
What Uses The Most Gas in a House?
How Can I Reduce my Utility Bills?
Does Unplugged Things Save Electricity?
Which is The Best and Worst Energy Supplier?
What is The Cheapest Way to Pay For Electricity?
What is The Best Times to Use Electricity?

What Are Utility Bills?

Your gas and electricity utility bill is a breakdown of the charges you’ve incurred as a gas and electricity customer. Your energy supplier sends you your utility bills on a monthly or quarterly basis so that you can understand how much you owe and provide payment options.

It sounds simple enough, but the average utility bill is made up of several different components. Here is a breakdown of an average utility bill to give you a better idea of where your money is going.

Environmental costs

A proportion of your gas and electricity bill is used to subsidise the government’s environmental initiatives. Environmental costs comprise approximately 6% of your gas bill and 11% of your electricity bill.

Environmental schemes which are subsidised by your gas and electricity bill include:

Feed-in Tariff scheme (FITs)
Carbon Emissions Reduction Target (CERT)
Community Energy Saving Programme (CESP)
The Renewables Obligation (RO)
EU Emissions Trading Scheme (ETS)

VAT charges

Contrary to popular belief, you do not pay full VAT on gas and electricity, but you do pay some. Currently VAT payments are capped at 5% of your total bill.

Transmission charges

Transmission networks are what actually deliver electricity and gas to your home, and some of the cost of building and maintaining transmission chargers is passed on to customers. Currently, 2% of your gas bill and 4% of your electricity bill make up these costs.

Distribution charges

16% of your gas bill and 16% of your electricity bill go toward distribution costs as some of the cost of building, maintaining and operating the local gas pipes and electricity wires which deliver energy to the home is passed on to customers.

Wholesale energy and supply costs

The bulk of your bill, unsurprisingly, is comprised of the charges you actually pay for the gas and electricity you use. This comes to roughly 67% and 58% of your respective bills.

Wholesale cost refers to the price that the energy supplier has to pay for the gas and electricity they buy.

Supply costs are the costs the energy supplier incurs for the general administration associated with a retail business – for example running a call centre and sending out bills – and these vary according to what tariff you are on.

Other costs

4% of your gas bill and 5% of your electricity bill. Includes meter installation and gas storage costs.

Tips to Lower Your Electric, Gas And Water Bills

There are plenty of easy ways to save on electricity, gas and water bills by being more mindful about how energy is used in your home or apartment.

1. Take Steps to Reduce Your Electrical Usage

Using less energy is the obvious and best way to save money on an electric bill. Using less energy can lower your utilities bill by as much as 25%.

Electricity for lights, powering electronics and other things accounts for about 12% of a home’s energy usage. If you have electric heating in your home, it’s likely one of the biggest parts of your utility bill.

Here are some suggested improvements that can reduce electrical usage. Where we can, we include how much each change can save you.

Energy-efficient lightbulbs that have the Energy Star label can add up to $75 per year in savings.
Solar panels can drop the cost of electricity and eventually provide free energy. One estimate is that solar panels can pay for themselves in about eight years.
New appliances with Energy Star seals are more energy efficient than old ones. Appliances eat up about 13% of a household’s energy costs.
New office equipment with Energy Star labels use 75% less energy than older models.
Update all of your electronic equipment. Timers, power strips, motion-detector switches and WiFi-equipped products can help save electricity.
Ask for an energy audit from your utility provider. This service is often free and can identify other ways to save.

If you need help paying your electric bill, look into government assistance programs. One of the biggest ones is the federal Low Income Home Energy Assistance Program (LIHEAP).

Also check with your power company to see if it has an energy cost management plan. It won’t trim your annual costs, but will more evenly distribute monthly payments.

Utility bills will increase in spring and fall, but bills in high-usage months in the summer and winter will be lower.

2. Save on Gas, Heating, and A/C

Heating and cooling are the biggest expenses on utility bills, so reducing your gas, heating and air conditioning usage should lower your bills considerably.

Here are some ways to save on gas utilities and other costs of heating and cooling your home:

Adjust the thermostat. Lower the thermostat to 68 degrees in winter and to 78 degrees in the summer.
Get a programmable thermostat that sets more efficient temperatures when you’re away or asleep.
Insulate your home better by installing weather stripping for doors and windows, sealing leaks with caulk, and using blinds to deflect solar heat in the summer.
Add insulation throughout your home, especially in the attic where energy can easily escape.
Clean or replace HVAC and furnace filters at least every three months.
Fix leaky ductwork for your heating, air conditioning and ventilation ducts.
Plant trees on the sunny side of the house to create shade and lower inside temperatures.
Replace your roof with a cool roof that reflects more sunlight and absorbs less heat than standard roofs.
Replace single-pane windows with double-pane ones. This will let in less sunlight and offer better insulation.
Adjust temperatures on your refrigerator to 38 degrees and on your freezer to 5 degrees.

3. Lower Water Bills

Take a look at your water bill and you may be surprised at how much water you’re using.

The U.S. Department of Energy reports that the hot water heater is responsible for about 17% of a home’s total energy use.

Here are some ways to save water and money in your home or apartment:

Buy an energy-efficient water heater. Labels on Energy Star water heaters will detail how much less energy will be used with the new tank. A tankless heater, which only warms water as it’s used, saves 30% more energy than conventional tank heaters.
Repair leaks on toilets, faucets and dishwashers to save 20 gallons per leak, per day.
Install low-flow toilets or convert existing ones to save two to five gallons per flush.
Add aerators to faucets to reduce the amount of water used and increase water pressure. Aerators attach to the faucet head and add air pressure into the water stream. They can save 17-27 gallons per day.
Buy an Energy Star dishwasher and washing machine and save 20-30 gallons per laundry cycle.
Use that new dishwasher instead of hand-washing dishes to save 2-4 gallons per load of dishes.
Shower for one or two minutes less to save 2.5 gallons per minute.

10 Ways to Save on Gas And Electricity Bills

You will find out that every little advantage you can get when it comes to reducing those monthly utility costs means more money at the end of the month in your checking account.

The interesting part is that there are many effective ways to trim your utility bills by doing a one-time task that lowers those bills. Here are 10 ways you can reduce your utility cost.

1. Negotiate

Go through each of your utility bills and mark every charge you don’t recognize. Call up that utility, ask about all of those charges and request to have them removed from your bill.

Every charge you can have eliminated from your monthly bill is a savings for you going forward.

2. Buy Energy-Efficient Appliances

When you’re replacing an appliance, look carefully at energy efficiency. If you intend to live in the same house for a long time or to take appliances with you when you move, invest in energy-efficient appliances. You’ll save money in the long run.

3. Adjust Your Hot Water Heater

Adjust the setting on your hot water heater down to 120 degrees Fahrenheit (50 degrees Celsius). Not only will this keep scalding water from coming out of your shower head or kitchen faucet, it will also significantly reduce the expense of heating your water, reducing your utility costs.

4. Wash Your Clothes on the Cold Setting

Laundry detergent does an excellent job of cleaning slightly dirty clothes with just cold water. Unless you have truly soiled garments, switch to washing clothes in cold water.

This will save you the cost of hot water for each laundry load, which can be as much as 50 cents per load, depending on washing machine size and local energy costs.

5. Caulk Your Windows

Feel around the edges of each window pane and see if you can identify any air leaks, which are spots where you can feel extra warmth on a hot day or chill on a cold day. Those spots are leaking energy. Get a caulking gun and a tube of caulk and seal up those areas.

6. Install Weatherstripping Around Drafty Doors

Check around the edges of your outer doors on cold or hot days. Can you feel the cold or hot air seeping through? If so, look into installing weatherstripping around the edges of those doors.

This will drastically reduce the constant energy loss, which means your air conditioning or furnace will run less frequently.

7. Switch to a More Efficient Showerhead

An efficient showerhead not only reduces water use, but it also reduces the amount of heated water that’s wasted. ShowerStart showerheads, for example, don’t start producing water until it’s sufficiently heated, meaning you don’t waste water while it’s warming up.

And they provide an easy method to halt water flow temporarily while showering, minimizing the water produced. This not only reduces the total water used in your shower, trimming your water bill, but reduces the amount of water you need to heat as well, trimming your energy bill.

8. Air-Dry Your Clothes

Rather than using a tumble dryer, simply hang up your clothes to dry. If you don’t have space in your yard for a clothesline, you can install a simple line on your balcony or run a line across a room in your home. This eliminates the energy cost of running a dryer.

9. Use a Wool Dryer Ball

Wool dryer balls not only eliminate the need for fabric softener, but also reduce the running time necessary for drying clothes by about 10%, which adds up significantly if you’re drying clothes frequently.

10. Cook Indoors in the Winter and Outdoors in the Summer

During the winter months, cooking indoors means that the excess heat produced warms your home, meaning that your furnace works less to keep your home warm.

During the summer, however, you don’t want heat in your home, as it will cause your air conditioning to work even more and add to your energy bill. Aim to cook inside during winter months and cook outside using a grill during summer months.

If you can’t, use highly energy-efficient indoor appliances for cooking, such as the microwave or slow cooker, not the oven or stovetop, as this will minimize the excess heat and reduce your utility cost.

Will Energy Prices go Down 2021?

Well, it seems very unlikely, and here are some facts to back it up.

The recovery in oil demand and the less-than-feared demand destruction earlier this year will support oil prices next year when producers will be playing catch up with demand, and Brent oil prices could rise to $66 a barrel, according to Energy Aspects.

Brent Crude prices are set to jump to $66 a barrel in 2021 and $83 a barrel in 2023, from $43 per barrel in 2020, Amrita Sen, co-founder, Director of Research, and Chief Oil Analyst at Energy Aspects, said in a presentation at a virtual energy conference, as carried by Bloomberg.

According to the energy analyst, the worst of the demand destruction was 18 million barrels per day (bpd) during the April lockdowns, while expectations were for many more barrels lost, to the tune of 30 million bpd.

Energy Aspects itself had expected a drop of 28 million bpd, while the actual maximum demand loss was 18 million bpd, Sen said.

Deloitte also said prices would be going up next year and the following two years, as demand continues to recover, according to its oil price forecast seen by Bloomberg.

Deloitte sees Brent Crude prices averaging $39 a barrel in 2020, but rising to average $46.50 next year and $64 per barrel in 2023.

Goldman Sachs also expects that prices will rise in 2021, although the short-term forecast stays at $35 a barrel, according to Jeff Currie, global head of Commodities at the investment bank.

Currie is sticking to the $35-a-barrel oil price forecast over the short term, he told Bloomberg last week, adding that if prices increased quickly, they would interfere with the market rebalancing by bringing more shale production back online.

As for demand and supply, Currie noted a marked improvement in demand, although in some parts of the U.S., it may be adversely affected by the resurgence in Covid-19 cases, notably in Texas and Florida.

What Cost The Most in Your Electric Bill?

Although factors such as location, appliance brand and overall usage can influence overall household energy costs, some of your key appliances will invariably cost more than others to keep running.

Central Air Conditioner

At 5,000 Watts, your central air conditioner is likely the most expensive factor contributing to your electricity bill. According to General Electric, an average central air conditioner unit can cost approximately $60 a month, depending on where you live.

If you live in a hot climate where you run your machine year-round, you could be paying around $700 a year in electricity costs just for your central AC alone. If you live in a cooler climate and seldom use your air conditioner, these costs obviously go down.

Electric Water Heater

Your electric water heater usually is the second most expensive appliance in your house. Although it typically draws much lower wattage than a central air conditioner, your electric water heater always is busy doing its job.

Standard Refrigerator, and Freezer Unit

Your trusty refrigerator is another household appliance that never takes a nap. Whether you’re sleeping, at work or on vacation, the refrigerator keeps chugging away.

This means it never stops adding numbers to your electricity bill. If your refrigerator’s freezer unit is too small to get the job done, you may decide to purchase an independent electric freezer.

This will cost you as freezers also always run. Most freezer units use a higher wattage than refrigerators, so they typically cost a little more per month.

Clothes Dryer

Unlike your electric water heater and refrigerator, your clothes dryer often gets to take nice long rests. When in use, a dryer can operate at 3,400 Watts. This may add extra digits to your electric bill.

Is it Cheaper to Pay Gas And Electric Bills Monthly?

If you choose the monthly direct debit option, the payment will be taken from your account at around the same time each month. It’s calculated by your provider, which estimates your entire year’s usage and divides it across 12 months.

However the amount you pay each month may not reflect the exact amount of energy you’ve used over the period. This is largely due to fluctuations in your energy usage, generally caused by seasonal changes – for example, you use more energy in the winter to heat your home in the cold.

This means you may end up over- or underpaying on your energy bill each month. If you overpay, your energy account will build up credit, which can be used for:

Reducing your monthly payments in the future
Covering your energy costs in months where you use more
Claiming money back if you switch provider

However if you underpay you’ll build up a debt on your account, which could result in your provider increasing your monthly payments to make up for the deficit. If your debt reaches a certain amount, your provider may stop you from switching until it’s been repaid.

What Uses The Most Gas in a House?

According to the U.S. Energy Information Administration’s 2012 data there are more than 66 million residential natural gas customers in the United States. That’s a lot of people who rely on natural gas to fulfill their everyday needs! Take a look at five of the ways residents are using natural gas to power their homes.

Cooking with natural gas

A lot of avid cooks prefer using a natural gas-powered oven instead of an electric model. It often provides better temperature control allowing for precision in every dish. However, accuracy isn’t the only ingredient making natural gas stovetops a good choice; they also use significantly less energy than an electric oven.

This is typically because the units heat and cool more quickly. And new models that eliminate the need for an ever-burning pilot in favor of an electric ignition use about 40 percent less natural gas.

Heating water

Homes connected to natural gas often include a hot water heater that relies on the commodity as well. Many people prefer a natural gas water heater because it’s more economical to run.

Since the price of natural gas is usually so much lower than electricity, using the commodity for any energy-consuming device will save you money on your energy bill.

Natural gas hot water heaters typically range from 20 to 100 gallons to fit a variety of household s. However, natural gas usually heats water faster than electricity, so you may be able to run a smaller-capacity unit.

Cooling your home

Though natural gas is typically used to heat your home, you can also find gas-powered air conditioning units. The machines are usually more expensive upfront, hindering many from switching to natural gas air conditioning.

But shale rock formations supplying large quantities of natural gas and prices for the commodity so low, gas air conditioners are beginning to gain popularity again.

They typically require lower operating costs than electric AC units and eventually pay for themselves in energy savings. In addition, a natural gas AC could reduce your dependency on the electricity grid. In the event of a power outage, you could still have working air conditioning!

Lighting a fire

Gathering firewood, cleaning up ashes and dealing with sparks are not your only option if you want to enjoy a nice fire. There are actually natural gas fireplaces that are highly efficient without all the mess of a wood-burning model.

With a controllable burner and natural gas logs you can get the same effect of a wood-burning fireplace and more control over the flame. If you need to leave your home or go to bed, simply flip a switch to turn off the fire. In addition, when you want to light the fire again, it can be turned on immediately for instant gratification.

If you can’t renovate your existing fireplace to a natural gas-powered model consider purchasing a gas insert. These can be placed in a traditional fireplace to increase efficiency and optimize the benefits of natural gas.

Drying your clothes

Natural gas clothes dryers can save you up to 50 percent in energy costs compared to electric models. In fact, they are so efficient you could do two loads of laundry in a natural gas dryer for the price of one load in an electric dryer. And you can do your laundry faster.

Natural gas dryers use a larger quantity of dry, absorbent air, which passes through your clothes and dries them more quickly. With a lifetime burner and automatic shut-off options a natural gas dryer might be the perfect option for a busy family.

How Can I Reduce my Utility Bills?

The energy-saving tips below give you some tools and tactics that will help you save gas and electricity at home. We have included estimated figures from the Energy Saving Trust to illustrate the potential energy savings that you could make.

1. Turn off standby appliances

Turn appliances off at the plug to save an average of £30 a year.
Use plug sockets that can be turned on and off via your phone, to make sure you switch unused appliances off. You could use cheaper timer plugs to schedule turning appliances off.

2. Install a smart thermostat

Smart thermostats can make your heating more efficient by only warming the rooms you are using.
They learn how long it takes to heat your home, so they can have it at the right temperature at exactly the right time.
They can also be controlled by your phone, which means you won?t have to come back to a cold home.
If you installed room thermostats, programmers and thermostatic radiator valves, you could save around £75 a year.

3. Turn down your thermostat

Almost half the money spent on energy bills is absorbed by heating and hot water costs.
Turning your heating down by just one degree could save up to £80 a year.

4. Buy efficient appliances

Throwing out a perfectly good appliance won?t save you much money, but when it is time to swap, going for one with a high energy-efficiency rating can be worth the investment.
An A+++ washing will typically use £65 less energy than an A+ one over an 11-year product lifespan.
A modern, efficient dishwasher will typically cost around £7 less a year to run compared to an older model.
An A+++ fridge freezer will save around £320 in energy bills over its lifetime compared to an A+ model.

5. Install a new boiler

You can save energy by upgrading your old boiler to a new A-rated condensing boiler with a programmer, room thermostat and thermostatic radiator controls.
Based on fuel prices in March 2019, a detached house upgrading from a G-rated boiler could save around £300 a year.

6. Wash clothes at a lower temperature

Washing at 30 degrees rather than 40 degrees can help reduce your energy usage, and if you can cut out one wash cycle per week you’ll clip £5 off your annual energy bill.

7. Be smarter about water

You can save around £25 a year by washing up in a bowl rather than using a running tap.
Buying a more efficient shower head can save you as much as £18 per person a year on energy bills, plus an additional amount if you have a water meter.
If you fit a shower timer in your bathroom, you could save up to £7 per person each year by cutting just one minute off every shower.

8. Invest in double glazing

Double glazing insulates your home from the cold and helps reduce your heating bill, as well as keeping the noise out.
If your semi-detached home is entirely single glazed, you could save as much as £110 a year by installing A-rated double glazing.

9. Draught-proof your property

A cold draught can cause your home to lose heat, which makes it more tempting to turn the heating up. Draught excluders or draught-proofing kits are a good way to prevent this.
Seal cracks in floors and skirting boards, line your letterbox and block an unused chimney to reduce your heating bills by up to £35 a year.
If you don’t have double glazing, you can buy plastic lining for your windows to save energy and keep more heat in.

10. Insulate the roof

Insulating your roof can stop heat escaping from your home ? however the process can be complicated so it may be best to employ an expert to do this.
While insulating your loft can cost several hundreds of pounds, it can also shave around £135 off your energy bills each year if you live in a typical semi-detached house.

11. Monitor your usage

Keeping a watchful eye on your consumption levels can help you decide if and when you have to change the way you use energy.
Installing a Smart Meter lets you track your consumption with accurate and real-time information.

Does Unplugged Things Save Electricity?

If you pay an electric bill, you’ve probably heard of the “phantom charge.” This mysterious-sounding phenomenon refers to when a plugged-in device keeps sucking up electricity, even when it’s not on.

You might even find yourself religiously unplugging things before you leave the house, to preserve those little bits of electricity. But does your extra effort really save money on your electricity bills?

The short answer: yes, the phantom charge is real. But it’s not as big a deal as you might think. To keep your energy bills low without losing your mind trying to unplug all your appliances, here’s what you need to know.

Most electronics use power even when they’re off or in “sleep” mode because this allows them to maintain their settings. Your microwave can always tell you the time, even when it’s not in use, because it’s using energy. When you turn on your television, it will look the same as it did when you turned it off, because it’s been using electricity.

The full list of electronics that pull small amounts of electricity when they’re plugged in is long, but it includes these essentials:

Phone and computer chargers
Printers
DVD players and DVRs
Power strips
Coffeepots

If a device has a clock, a power-on light, or any other indication that it’s plugged in, it’s using electricity. But even your innocent phone charger sucks up small amounts of power when you’re not using it. Virtually no electronic device is safe from the phantom charge.

Is Unplugging Worthwhile?

The EPA says that this “standby power” accounts for about 5 to 10 percent of your energy bill, “costing the average U.S. household $100 per year

When you break it down, that’s only an average of about $8 a month. And a test at our sister site, How-To Geek, showed that the true cost of phantom charges might be even lower than that. So unless you’re strapped for cash, it’s probably not worth the effort it takes to diligently unplug your devices when you’re not using them.

However, if you have lots of devices, or live in a place with unusually high energy costs, the phantom charge cost can be higher. In that case, it may be worthwhile to find ways to reduce that waste.

Which is The Best and Worst Energy Supplier?

Best Energy Supplier

1 – Octopus Energy

Octopus Energy topped the charts for a second year running. The supplier received five stars for half the categories (bill accuracy, customer service and complaints handling) and a respectable four stars for the others (bill clarity, digital tools, value for money). It received an overall customer score of 80%.

The company was only launched in 2016 but has already attracted over 1.4 million customers, gaining an average of around 30,000 customers a month. It offers customers a wide range of tariffs, including an electricity deal using 100% renewable energy. Its deals are also some of the cheapest in the UK, and switching is made easy as none of their tariffs charge exit fees.

2 – Ebico

Ebico came in second place, scoring five stars for bill accuracy and four stars in each other category. It received an overall customer score of 79%. Ebico was founded over 20 years ago but remains a small, not-for-profit energy supplier.

Any profits the company makes is put into projects that aim to affect people living in fuel poverty, and all its tariffs use 100% renewable electricity. Its most successful tariff on offer is Ebico Zero, which has no exit fees or standing charges, so you pay just for what you use.

3 – Bulb Energy

Bulb Energy was rated as the joint-third best energy supplier in 2020, scoring five stars for both bill accuracy and complaints handling and four stars for each other category. It received an overall customer score of 78%.

The supplier was founded in 2015 but has grown quickly to boast over a million customers. It offers just one tariff, and as well as being among the cheapest in the UK, it promises 100% renewable electricity and carbon neutral gas. There are also no exit fees should you wish to switch supplier.

4 – Pure Planet

Pure Planet came in joint third, scoring five stars for bill accuracy and four stars in other categories, receiving an overall customer score of 78% along wih Bulb Energy.

The firm was launched in 2017 and is digital-only – meaning no paper bills and no customer support over the phone. However, this hasn’t impacted its overall customer satisfaction ratings, and it also sells 100% electricity and carbon-neutral gas.

5 – People’s Energy

In 5th place was People’s Energy, another small supplier selling 100% renewable electricity. In the survey it received five stars for its bill accuracy, four stars for bill clarity and value for money, and three stars for digital tools, receiving an overall customer score of 77%.

The firm, based in East Lothian, promises to give its customers 75% of the profits it makes – either through bill reductions or credit on customers’ energy accounts.

Worst Energy Supplier

1 – Together Energy

Together Energy was rated as the worst energy company out of a total of 35 suppliers in the 2020 survey. It was only one of two firms in the list that received just two stars for each category. No supplier was rated worse for any of the categories measured in the survey.

It received an overall customer score of just 48% – the only supplier in the rankings that scored lower than 50%. The Scottish-based supplier was launched in 2016 and currently has around 60,000 customers, most of them north of the border.

2 – Spark Energy

Spark Energy was rated as the second worst energy supplier for the second year in a row. It scored three stars for its complaints handling, but just two stars for every other category. It received an overall customer score of 51%.

One of the biggest complaints was poor customer service over the phone, which often involved long waiting times – almost twice the average. Spark Energy ceased trading in November 2018 but was taken over by Ovo Energy, who carried on using the Spark brand name and their customer service staff.

3 – Scottish Power

Scottish Power was also second worst. Like Spark Energy, it received an overall customer score of 51%. One of the Big Six energy suppliers, Scottish Power provides gas and electricity to over 5 million homes and businesses in the UK.

The company had the highest number of complaints out of any of the major energy suppliers last year, although they also had the quickest response times of the Big Six. Scottish Power has recently sold its gas plants and closed its coal-fired power stations, now supplying the majority of its energy from renewable sources.

4 – Ampower

Ampower was rated as the fourth worst energy supplier in the UK in 2020. Although it received a respectable four stars for its complaints handling and three stars for value for money, it received just two stars in every other category, with an overall customer score of 53%.

The firm was only established in 2016 and prides itself on offering affordable energy. With its small choice of tariffs, you can choose whether you want renewable electricity or not, while none of its contracts have exit fees.

5 – Green Star Energy

Green Star Energy came 31^st out of 35 suppliers. One of only two energy companies to be rated two stars for each category (along with bottom-rated Together Energy), it received an overall customer score of 55%. It was rated particularly badly for its complaints handling, with 37% of customers rating it poor or very poor, compared to the average of 13%.

Formerly known as Pioneer Energy, Green Star Energy was formed in 2013 and gets all of its electricity from renewable energy generators around the UK.

What is The Cheapest Way to Pay For Electricity?

Monthly Direct Debit

Monthly direct debit will usually be the cheapest way to pay for your energy bills, as most suppliers offer a discount for doing it this way. This is an agreed, set amount that will be taken out of your bank account on the same day of every month.

As you use less energy in summer, you should build up a credit balance which will cover your extra energy usage in the winter. If you choose this payment method it is important to keep an eye on your bills, as you may end up with a debt if your winter household energy usage is substantially more than your summer usage.

The exception to this is if you have a smart meter. These new types of meter relay information daily to your supplier so they always know what you are using, and only charge you for that amount.

Variable Monthly Direct Debit

With a variable direct debit, you only pay for what you use each month, so the amount taken from your bank will be different with each payment. This method of paying your utility bills requires you to submit monthly meter readings online or by telephone so can be more time consuming, and could also be hard in the winter months when your bill will be higher than at other times in the year.

Quarterly Direct Debit

Quarterly direct debit payment means that you will receive a bill every three months, and the amount will be taken straight out of your bank. The amount you have to pay will be much higher as it covers a longer period, which means that your winter bill could be a shock!

Making sure that you provide regular meter readings will make sure that you are only paying for what you use though, which will stop debt building up, or too much money being taken out. Some energy suppliers will still offer a discount for quarterly direct debit customers although it may not be as big as the monthly discount.

Quarterly Cash or Cheque

Paying on receipt of your bill can be a good option for people who live in shared houses, such as friends or students. It allows the bill to be divided between those responsible, without any one person having to take the burden of the money coming out of their account. You will not receive any discounts for paying this way however, so you may want to look at the ‘Prompt Pay’ section below.

Prompt Pay

This is where you pay by cash or cheque on receipt of bill, but receive a discount for paying within a set amount of days. For example, if you pay your bill within 14 days of the date on the bill, you may receive 6% off. The discount amount and the prompt pay period will vary from supplier to supplier, so check with your current provider to see what yours is.

Prepayment Meter

Prepayment meters are usually the most expensive way of paying for your gas and electricity. For some people though, this may be the best option, particularly if you struggle to keep on top of your bills.

If you have this type of meter, you will not pay in a regular way, as you will top up your meter as and when required. You will almost certainly not receive any discount as a prepayment customer.

What is The Best Times to Use Electricity?

Peak hours will always be the most expensive time of day to use electricity. The exact hours, and the premium you pay for electricity, will vary depending on the utility company and the plan you’re opting into.

Many utility companies offer more than one time-of-use policies. These plans may have different hours classified as peak hours, or may even include some “partial-peak” hours that charge less than peak rates, but more than off-peak rates. Many rates will depend not only on the hour that you’re using electricity, but also the season.

Summer rates are often higher than winter rates because of energy-intensive air conditioning systems running during hot days. You might also have a plan that has lower peak rates, or fewer peak hours, on the weekends.

Peak hours for electricity tend to be when you expect them because it’s the time of day when most people are using electricity. Generally, you can expect peak hours to start sometime in the afternoon and go into the evening, when people are returning home after a day of work and using more lights and appliances.

Every utility plan is different, so be sure to check the specifics and consider how the peak hours for electricity will impact you personally. If you’re already using most appliances in your home during the hours specified as off-peak, you could potentially save money by switching into a time-of-use electricity plan.

Finally

Lowering your utility bills shouldn’t be too hard. Just taking small steps such as replacing lightbulbs, shorter showers, and adjusting the thermostat can add up to big savings over time.

For more savings, try bigger steps like replacing old appliances and windows, and installing solar power. Some steps may require long-term investments, so do the math to ensure the savings will make them worthwhile.