Energy Boom! What to do to lower your costs?

The most effective strategy to saving money is to spend quality time on it.

Can you do it cheaper? Can you do it better?

Whether it is your commuting costs, telephone bills, food shops... there is always a way in which you can save that little bit extra. However.. with the recent serge of energy prices, this has been made a little more difficult. Here are some tips and everything you need to know on how to save the most on your energy bills.

First and foremost we need to understand that what is happening with energy is completely unprecedented and in pretty much all cases, there will be an increase in your bills, it has unfortunately reached the stage of damage limitation.

Speak to your energy company, get their professional opinion and what they think may happen to the energy market because the chances are if you locked in at ￡1000 last year, you will now be paying close to ￡1500 this year.

The price cap is subject to increase, it used to be the case where the price cap was the most you would pay, and you were advised to veer away from this, but now it may be seen as the minimum energy providers are will to offer with. Sitting at ￡1133 before October, the price cap is now sat at ￡1270 with another change set for April 1st. It is unprecedented but a lot of experts are giving signs it is more likely to increase up to ￡1500.

We must remember that the 'price cap' is a false name, it is actually more of a rate cap as if you use less than the national average for energy bills then your rate will be lower, yet if you use above the national average your rate will be higher. 1133-1270 the price cap is going to change in April to an estimated 1500 which is unaffordable for most people.

A smart metre will help you control your energy bill. Knowing how much you have used will help with budgeting for the rest of the month. Cold showers are something that aren't loved by everyone but beneficial for health reasons as well as saving on energy bills. If you have a gym membership you may be more inclined to use the showers there over your own as you are using their water and not yours.

But when it comes to your own energy bills, it is much better to sort it now than later, as the price variation is so unprecedented that you could be a lot more worse for ware. Realistically, you have two options:

• Option number one being joining onto the price cap, and over time hope whole sale prices decrease so you will be charged less in the future. In the short term you are paying less than a fixed deal, yet in the long term you could be subject to higher or lower prices subject to change.
• Option number two would be going onto a fixed contract of up to two years where by you are fixed to the same price. In the short term you are paying more, but in exchange you are getting that sense of long term security.

Option 1 is more of a risk, yet there is the potential for it to come up a lot cheaper in the long run. Option 2 is much safer, as you are not subject to change in price. Some energy company's offer grants for those who really struggle, but this is done through a very outdated structure, could this all change in April 2022?