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Cutting household bills

Heating bills have doubled and average electricity prices have soared by 50% since 2003.

But if you are still with your traditional suppliers you could nearly halve your bills by switching to the cheapest company for your area, according to consumer group Energywatch.

Even if you have moved away from your original supplier, it's worth checking whether you are still on the best tariff, as all the major power companies have increased their prices two or three times this year alone.

The average family could save up to £250 by switching. No single company is cheapest. Prices vary from region to region, though British Gas is always the most expensive for gas. However, if you go for its internet electricity offer - Click Energy - it's cheaper than the other major suppliers.

There are a number of comparison companies to help you over the internet or telephone, including SimplySwitch.com (owned by DMGT, publishers of the Daily Mail), uSwitch, Switchwithwhich and energyhelpline.com.

Before switching, make sure your bills are accurate. If you have only estimated bills - marked with an 'E' next to the figure - check your meter and give your company the correct figure. Keep a record of it.

Questions to ask when you switch

• Will you be tied into a contract?

• Is a there service contract for central heating?

• Can I have a prepayment meter if I want one?

• How often will you get bills?

• Are there any additional charges?

• Do you get a discount for direct debits?

• What is the complaints procedure?

• What happens if I change my mind?

After that it's simple. Armed with bills for the past 12 months, the switching services can tell you who is cheaper and roughly how much you will save. They organise the paperwork and you should be transferred within 28 working days.

When your first bill comes in, check that the starting figure and the last meter reading match.

In a fix

Over the past couple of years, companies have been offering fixed prices or capped deals where they guarantee the cost per unit will never go above a pre-set amount.

You paid for peace of mind because fixed or capped prices were typically 20% higher than standard rates, but given the scale of the price rises, those who went for fixed prices are generally benefiting now.

If you have fixed at an expensive rate and prices fall, in most cases you can still move away without paying a penalty.

A few of the earlier deals had penalties for leaving the company within the period, but they will be coming to an end - and your rate is likely to look cheap now compared with normal prices. If you haven't fixed, now is not the time to do it.

Grab a discount

Companies offer a range of discounts. They usually offer a cheaper rate if you have both your gas and electricity from the same supplier, known as dual fuel.

But it's still worth checking whether you would save money by having them from different suppliers. And you'll get a better price if you pay by direct debit.

Online deals from major suppliers are usually priced the keenest. Not only do you sign up over the internet, but you usually have to go online to view bills and receive correspondence by email. Payments are made monthly by direct debit.

Power down

Saving energy is one way everyone can bring down their fuel bill.

The Energy Saving Trust says many homeowners could slash £300 a year off bills by being energy efficient. You lose nearly 60% of your heat through your home's walls and roof. Fitting loft and cavity wall insulation are cheap and easy ways to save energy. Older homes may not be suitable for cavity wall insulation, but most houses built since the 1920s should be.

If your boiler is more than 15 years old, consider changing it to a more energy efficient one. Condensing boilers can cut heating bills by up to a third.

Fitting a jacket to your hot water tank, using energy saving light bulbs, closing curtains at dusk and buying energy efficient appliances when you are replacing old ones, will all keep costs down. Showers use only a third of the water and power needed for a bath.

Even small changes help - such as switching off unused lights, turning the heating down by one degree celsius, and turning off appliances on stand-by.

The biggest culprits are TVs, which one in three people admits to leaving on standby.

Although it won't save you money, if you want to help save the planet you can switch to a green tariff, which means the energy comes from renewable sources.

Grants

Grants are available for cavity wall and loft insulation, draught proofing, new boilers and energy efficient appliances.

They differ depending on where you live and your personal situation. The government has announced in the Budget that a quarter of a million more homes would be given money towards the cost of fitting insulation.

Your energy company may have schemes too. British Gas has signed up councils around the country to offer rebates of up to £100 off council tax bills in return for putting in cavity wall insulation. You don't have to be a British Gas customer to qualify.

There is a winter fuel allowance worth up to £200 for those aged between 60 and 79, and up to £300 for those aged over 80.

The Energy Saving Trust has a list of all the various grants on offer from the Government, energy suppliers and local authorities on their website (www.est.org.uk/myhome).

Alternatively, contact your local Energy Efficiency advice centres on freephone 0800 512 012.

Find out the cheapest supplier here.

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