By Alison Steed

THE RECENT hot weather will not only have been good for having barbecues, it will also have reduced the amount of energy you use in the home, meaning now is the perfect time to address your energy tariff.

Cutting energy usage is not only helping to reduce carbon emissions and help the environment, it will also leave you more cash in your pocket. Most of us use extra gas and electricity in the winter, and while we are all using less, there is now a greater chance of getting a good deal, according to Tesco Compare.

In fact, by following a few simple rules around the home, you could reduce your energy bills by as much as 40 per cent, and getting the best deal for your level of usage will reduce costs even more. For example, if you fixed your electricity prices last year, you may find that you are now paying significantly more than you need to, as electricity prices have come down.

Scott Byrom, utilities manager at price comparison site moneysupermarket.com, said: "Fixed rate deals were in vogue last year - 70 per cent of our customers who swapped provider in July 2008 chose a ‘fixed’ energy tariff saving themselves an average of £134.50 a year against a back drop of sharply rising prices. Ofgem research also found that around 4.6 million people are on a price guarantee tariff of some sort.

“Bill payers need to be aware that the big increases they could face when their current deal ends could wipe out any savings that they made when they fixed last year. Timing is crucial when proactively looking for a new energy product, move off your fixed rate too early and you could face termination fees of up to £75.  Move too late and you might find yourself automatically switched to the standard deal or locked into a less attractive fixed deal which isn't the best as we move into autumn and winter weather.”

You can get an energy monitor on the high street, or from some energy suppliers, and using it will help you see where your money is going.

But MyMoneyDiva has joined forces with Norwich & Peterborough Building Society to offer all our users a free energy monitor.

But that is not the end of the story. By working out which gadgets in your household use the most electricity, you can tell which ones should be switched off, rather than put on standby, when they are not in use. This will cut your bills even further.

You can get an energy monitor on the high street, or from some energy suppliers, and using it will help you see where your money is going. But MyMoneyDiva has joined forces with Norwich & Peterborough Building Society to offer all our users a free energy monitor.

A spokesman for Tesco Compare said: “People normally assume that it's the big electrical items in the home such as plasma televisions and computers that burn the most electricity, but in actual fact it is smaller devices that consume the most energy. For instance, heated towel rails can cost around £10 per month to heat; while leaving the coffee machine on standby could add around £10 on your monthly electricity bill.

“Wireless electricity monitors can be bought from a number of electrical shops online and on the high street for as little as £30-£50.  Some energy providers are even giving similar devices away for free - E.ON currently offers a free energy monitor to all customers on its Energy Saver 8 tariff, plus customers can sign up to earn Tesco Clubcard points on their energy bills.”

Having tested E.On’s energy monitor, Tesco Compare found that lighting makes up 40 per cent of the energy bill, and by turning off the coffee machine and not using a heated towel rail, you could reduce your bill by as much as £30 a month – or £90 a quarter.
However, getting the right price for your energy is also paramount. Fixed rate deals from npower and Scottish Power are due to end soon, said Mr Byrom, and currently the best deal you can get online is with British Gas WebSaver 3, he said.
It can take as long as four weeks to switch provider, so it is wise to start the process sooner rather than later to try and avoid moving to a more expensive tariff.

Mr Byrom said: “Npower's One Tariff fixed deal comes to an end in a few weeks and these customers could see their bills jump by £231 a year if they revert to a standard deal. Scottish Power's Fixed Price 2009 deal ends on August 31 and these customers could see their bills rise by £340 a year.

"Fixing again now may not be the best option for the majority of bill payers, falling prices mean online deals offer better value - WebSaver 3 from British Gas for example is the best value tariff at £1,018 a year. Brits suffered unprecedented price hikes last year, 47 per cent for gas and 28 per cent for electricity, and for many ‘fixing' their energy bills was the best way to mitigate these escalating costs.  Since then, however, energy prices have fallen and customers who act now can bag decent savings - it takes just seconds to compare energy providers but the savings can run into hundreds of pounds. The whole process is easy and hassle free."

*This date is 4-weeks (28-days) prior to the End Date to allow sufficient time for your application to be processed.

** This saving represents the cost saving against the provider's Standard deal.

² Early Termination fees: