MANY families can experience bill shock in the cooler months when faced with the higher energy bills that winter brings.
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Australian households have some of the highest energy costs in the developed world, and every year more families struggle to pay gas and electricity bills. Combined electricity and gas bills have already risen by as much as 85 per cent in some states over the last six years.
Research by energy price comparison website comparethemarket.com.au suggests 50 per cent of Australians frequently worry about their ability to pay for services.
The website cautions that few families may have a strategy to reduce their bills, despite already being under significant financial pressure.
The latest annual report by the Energy and Water Ombudsman NSW found that the number of disconnections in the first three quarters of 2013/2014 (25,900) exceeded the total number for the 12 months prior (24,888).
It also saw a 32 per cent increase in disconnection complaints.
Abigail Koch, spokesperson at comparethemarket.com.au, said there are ways to save money.
“There are many ways the average household can better manage their energy costs, either by cutting back on their energy usage or by taking more control of their finances.”
Below are seven tips by comparethemarket.com.au for taking control of your energy bill this winter:
1. Bill smoothing. Some energy retailers offer this option, which involves spreading the estimated total cost of your energy bills for the next year across equal instalments. This means you’ll avoid bill shock altogether as you pay the same amount each month.
2. Keep ahead of your bills. Most energy companies offer discounts for paying bills on time and for paying by direct debit. If you can afford it, make sure you always pay your bills by the due date and you could enjoy up to a 32 per cent discount.
3. Apply for an energy rebate. A Family Energy Rebate is a means-tested rebate that gives eligible households a $150 credit on their electricity bills, while the Low Income Household Rebate gives households a $235 credit. The Energy and Water Ombudsman is concerned that many customers who are eligible for a rebate aren’t receiving it.
4. Be patient. Cranking up the temperature won’t heat a freezing house any faster than setting it at your normal temperature and giving it the time to heat up a room. The heater will take the same amount of time to get to 20 degrees, regardless of what you set the thermostat at. All you’re doing by setting it too high is wasting energy.
5. Turn it down. Many people have their heating on a few degrees higher than necessary. Turning the temperature of your heater or reverse-cycle air conditioner down a few degrees, to 18–20 degrees, can save you significant sums over the year. More often than not, you won’t notice the difference.
6. Shut the door. Contain the heat within rooms you are using by closing the doors to any unused rooms. An open door can suck a lot of heat out of a room. Similarly, drafts and cracks will make your heating work much harder, with much of it leaving the house, while you sit shivering inside.
7. Power down. This is an obvious one, yet is often ignored. Turn off any appliances you’re not using – including at the wall. Keep the plugs turned off, and only switch them on when you need to use them. The average household pays around $100 in standby power costs a year.