![]() If your usage proves to be more or less than anticipated, then the direct debit amount will be calculated to try and avoid any surplus or shortfall in your account. Your energy provider will work out an estimate of what you’re likely to use over 12 months and then spread that amount across 12 monthly direct debits. Monthly direct debits can be a good way of avoiding paying a large sum every quarter or year. At the end of each period you’ll be billed for that amount. Paying quarterly or annually means you will be sent a statement for the exact amount of gas and electricity you’ve used, provided you’ve been supplying them with accurate meter readings. Next up is the amount of energy used by consumer electronics such as DVDs, TVs and computers every year.You can choose to pay quarterly, monthly or annually for your gas and electricity. You should also make sure they're kept as full as possible and that the area around them is kept clean so they don't have to work as hard. Look out for the energy efficiency stickers on modern appliances (pictured below). Replace your current fridge and/or freezer with an energy efficient model. Tumble dryers use a lot of energy, so if you can dry your clothes for free, that will help keep costs down. Many washing powders will now work at temperatures as low as 30 degrees, which is enough to effectively wash clothes while also helping your machine run more efficiently.ĭry your clothes outside or on a clothes horse. Use the economy setting on your washing machine. It may sound obvious - but keep the number of wash loads down by making sure the machine is full every time for maximum efficiency. Follow these tips and you could save a fortune on your heating bills:ĭo your washing less frequently. The biggest portion of your energy bill is taken up with heating your home and your water. Meter installation and gas storage costs comprise about 4% of your gas bill and 5% of your electricity bill. ![]() 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. Wholesale cost refers to the price that the energy supplier has to pay for the gas and electricity they buy. This comes to roughly 67% and 58% of your respective bills. The bulk of your bill, unsurprisingly, is comprised of the charges you actually pay for the gas and electricity you use. Distribution chargesġ6% 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. Currently, 2% of your gas bill and 4% of your electricity bill make up these costs. ![]() 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 VAT payments are capped at 5% of your total bill. Contrary to popular belief, you do not pay full VAT on gas and electricity, but you do pay some.
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