Easy energy bill mistake that could see you paying hundreds of pounds more

The Sun

12-05-2025

A SIMPLE energy bill mistake could see you paying hundreds of pounds more than you should be.
Energy bills remain high for millions of households with the Ofgem price cap set at £1,849 a year.
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This is the average amount a household on a dual-fuel tariff paying by direct debit is having to fork out.
So it pays to cut costs where possible.
Make one simple mistake and you could end up paying out hundreds of pounds more on your electricity than you should be though.
Economy 7 and 10 tariffs charge you two different rates for electricity based on the time of day.
You are usually offered a cheaper rate for seven or 10 hours during the night and a more expensive one during the day time.
However, if you're on one of these tariffs and don't make the most of the off-peak rates, you could end up paying more than if you were on a standard tariff.
Natalie Mathie, energy expert at Uswitch, said the simple error could end up costing you £219 more a year under the current price cap.
She explained: "One major UK energy provider charges 34p per kWh for electricity to its standard customers, on average.
"Its night rate for Economy 7 tariff customers is just over 16p per kWh, compared with more than 42p during the day — which is around a fifth (21%) more expensive than the unit rate on a standard tariff.
"But the average UK household uses 2,700kWh of electricity a year, so if they used this all at an Economy 7 day rate of 42p it would cost them £1,138 – compared with only £919 on a standard deal."
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Of course, the likelihood of someone being on an Economy 7 or 10 tariff and using all their electricity during peak hours is unlikely.
But, in any case, it's worth checking if you're on one of the tariffs using the bulk of your energy during peak times and could save money switching to a standard tariff.
You can also quickly find out if you're on an Economy 7 or 10 tariff by checking your bill.
If you're considering switching from an Economy 7 tariff to a standard tariff, get in touch with your energy firm.
If you're not happy with the rates they're offering you on the new standard tariff, you can always shop around and go with another supplier.
What are Economy 7 or 10 tariffs?
Economy 7 or 10 tariffs charge you different rates of electricity based on the time of day.
Economy 7 tariffs are more common than Economy 10, with cheaper rates for Economy 7 tariffs usually running from midnight to 7am.
The main advantage to them is that you can save money on your overall energy bill if you use more electricity during off-peak hours.
For example, if you need to charge an electric car or a storage heater, which is an electric appliance that stores heat generated during off-peak hours and releases it during the day.
They are also mainly designed for households that generate all their power from electricity rather than electricity and gas.
To sign up to an Economy 7 tariff, you'll need a smart meter or a dedicated Economy 7 meter installed in your home.
If you think you might be suited to an Economy 7 or 10 tariff, make sure you shop around for the best deals and rates.
You can do this through price comparison websites like Go Compare and Uswitch.
It's worth bearing in mind, some older Economy 7 meters are set to stop working from later this summer.
Any that use the "Radio Teleswitch Service" (RTS) to transmit and receive data will become defunct from July 1.
If you think you have an RTS meter, contact your supplier to find out when it can be upgraded, most likely to a smart meter.
Some RTS meters have a transmitter or separate teleswitch box next to your electricity meter.
How to save money on your energy bills
The quickest and surest way of saving money on your energy bills is reducing how much energy you actually use.
This means dialling down your thermostat by one or two degrees, or switching halogen lightbulbs for LED ones, which the Energy Saving Trust says saves you around £1-£4 per year per light bulb.
Beware of appliances that guzzle through energy as well, including tumble dryers which are notoriously expensive to run.
In the current market, you could save money by switching from a standard variable energy tariff to a fixed tariff too.
Fixed tariffs charge you the same unit rate for gas and electricity over the contract term rather than standard variable tariffs where the unit rates fluctuate based on the price cap.
Whether you'll save money opting for a fixed tariff really depends as you pay different amounts based on where you live and your usage.