Improving Your Winter Heating Bill

Overview

This month, with the onset of colder weather I thought it would be prudent to lend my brief thoughts on a common thread that exists between June 1 and August 31 (yes, winter is coming). In almost an inverse relationship, as the physical (mercury) and numerical (visible scale) value of your household thermometer drops so begins the ascent of your heating bill. And, if you are wondering how does this article relate to personal finances, well consider what a reduction on your overall household utilities bill could mean in terms of utilising the new excess in your bank accounts to increase your: savings potential; reduction in debt; growth of superannuation for retirement; or, finally be able to afford that holiday (e.g. Cycle de Vine vineyard and winery trails - Queenstown).

A Few Simple Tips

Data from AGL Energy Ltd has found that Australians use more electricity staying warm in winter (daily average 16.4 KWh during winter) than they do staying cool in summer (daily average 14.3 KWh during summer). So, here are a few simple tips to help improve the efficiency of heating your home. And, I apologise if this seems so simple, but we sometimes forget that some of the most simplistic changes can create dramatic results. Get the most out of your heating by:

• Dressing appropriately - fashion and frostbite should not mix.
• Reviewing your energy retailer. MoneyHound (https://au.pfinance.yahoo.com/compare/) is a useful website that compares your existing contract with the offerings of other market competitors vying for your attention.

• Becoming friends with your heating natural resource, namely, do not be a stranger to your 149.6 million km away neighbour, let the Sun in to warm the house through north facing windows.
• Sealing draughts around doors and windows with curtains, blinds and door snake as well as making sure your home is well insulated will help reduce heat loss and could help you save up to 25 percent on your heating bills.
• Increasing the circulation of the heat emitted from your heaters through the use of fans...but, for your own safety I would suggest not getting too creative.

(Source: Listrater) 

• Resisting the temptation for that longer winter shower. Hot water accounts for around a third of the average household’s energy use. In addition, washing linen and clothes in cold water instead of warm water runs on the same principle.
• Heating essential areas and designate/cordon off (if possible) ones that do not need warming up such as toilets and storerooms. Closing doors to rooms that do not need heating can prevent up to 75 percent of heat loss.
• Setting your winter thermostats to between 18–20°C (every 1°C higher could increase your heater’s running costs by up to 10 percent) and investing in high energy rating heating appliances. Let us look at an example of the roughly estimated costs involved in heating a whole house (160-170m2) over the course of 900 hours with either a Non-Zoned Gas Ducted  System (23 kW) or a Zoned Gas Ducted System (23 kW) each of which is compared across multiple energy ratings available: 3.5 stars equates to either $1,055 or $790 respectively; 5 stars equates to either $980 or $735 respectively; and, 6 stars equates to either $895 or $670 respectively. Please note: these concepts also apply to heating small/medium/large rooms with gas/electric portable heaters and electric split system air conditioner.
• And, finally my favourites - investing in a hot water bottle for the bed and sipping a warm camomile tea (with a slice of lemon) before turning in for that 6-7 hour recharge.

Conclusion

As you can see, there are a several adjustments that you may be able to make to improve your chances of receiving a lower heating bill this winter; but, remember to be realistic with your adjustments because your health and sanity are more important than being uncomfortable or freezing to simply save money these next few months. I leave you now with a little geographical and meteorological context to my writing:

33.4177° S, 149.5810° E.

(Source: Weatherzone)

References

• Australian Government, Department of Industry, Innovation & Science. Your Energy Savings: Heating & Cooling. Retrieved from: https://yourenergysavings.gov.au/energy/heating-cooling 
• Dee, J. (2010). The 20 Step Guide to Cutting Energy Bills in Your Business.
• Graig Family Institute & Sustainability Victoria. (2011). Save Money Save the Environment Live Better. Retrieved from: https://craigfc.org.au/wp-content/uploads/2015/09/Sustain_Booklet-final.pdf 
• Sustainability Victoria & Victoria State Government. Heating Running Costs. Retrieved from: https://www.sustainability.vic.gov.au/services-and-advice/households/energy-efficiency/at-home/heating/heating-running-costs 

This publication provides an overview or summary only and it shouldn't been considered a comprehensive statement on any matter or relied upon as such. This publication doesn't take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser. You should seek advice from a qualified taxation adviser when making any decisions about taxation matters.