Regulator Ofgem is forcing energy companies to provide their customers with an annual statement and explanation of energy prices.

Under the new rules just announced by energy regulator Ofgem, they are prepared to take the suppliers to the Competition Commission if they fail to agree to the proposals.

But even before the regulations come into force, consumer groups are reminding consumers that they can do much more themselves to keep costs down.

First amongst the recommendations is to buy a new boiler with the latest technology. Unless people have a boiler less than three years old, a replacement is one of the best ways of saving money on heating bills. People should strive for a condensing boiler, which is over 90% efficient, compared to many older models which struggle to get a 60% rating. Research has shown that almost one in three boilers have never been serviced (risking death from carbon monoxide poisoning, as well as a bigger bill). And with the heating and hot water accounting for some 60% of the average home’s energy usage, a modern boiler should not be overlooked as the best way of saving money. Boilers should also be fitted with the latest controls and the rooms should be equipped with the latest thermostats, meaning that temperature control can be properly regulated throughout the property.

Second on the advice front is to get the best tariff. Loyalty to one supplier is now old hat and savvy customers move around in an attempt to get the best deals possible. Evenso, over 30% of households will never have switched energy suppliers. And the big suppliers will usually change their tariffs at least twice a year, meaning that one good deal might not last more than six months. Customers are advised to consult comparison websites and understand that the best deals are from those companies that offer dual fuel tariffs (electricity and gas from the same company).

Thirdly, don’t waste the heat you produce, or the electricity you buy. If you haven’t got it already, consider loft insulation, cavity wall insulation and double glazing. One, or all three, can make dramatic difference to heating bills. Don’t leave electrical items on stand-by overnight. Switching such items off completely can nearly save you 10% of your electricity every year.

Fourthly, both read and understand your meter and your bill. Suppliers do make mistakes and so nothing should be taken for granted. Claim refunds if you think a mistake has been made. Also, by watching your consumption, it will more easily help your understanding of how much your house actually costs to heat and operate.

Fifthly, when it comes to your paying, opt for Direct Debit, or paperless billing. Currently, most suppliers offer discounts for both methods, mainly because it helps their cashflow and money management. But take advantage whilst you can.

So, don’t wait for Ofgem to force the energy companies into helping you see what you are actually paying for. Be aware now of where your precious money is going.

Guest Article by Neil Camp