Energy bills: where does your money go?

The average, standard household energy bill in the UK is £1,239 a year (as at 19 November 2009). This is no small sum of money - yet many of us don't know where our money is going.

You can find a pie chart below that shows you how your energy bill is divided up. Next to the pie chart, you'll also find a table that shows you what the split means in monetary terms for the average household.

You might be surprised to see the difference in how much you'll pay for your energy if you're on an 'Online' plan compared to what you'll pay on your supplier's 'Standard' plan. With a bill difference of £265, you could save hundreds of pounds a year just by switching to an online energy plan. Compare gas and electricity prices to see how much you could save.

Data for the pie chart and table sourced from the Energy Savings Trust.

With over £755 of your energy bill going on heating and hot water alone - you might consider putting on a warm jumper before turning on the boiler. If you find these figures worrying, there are plenty of things you can do to bring down your energy bills.

The biggest portion of your energy bill is taken up with heating your home and your water. Follow these tips and you could save a fortune on your heating bills:

• Turn your thermostat down by 1 degree. This could save you as much as £55 over the space of a year.
• Make sure your home is adequately insulated. Loft and cavity wall insulation will require an initial investment, but could easily save you around £150 a year in heating costs.
• If you're on a low income, you may be eligible for an energy efficiency grant to make improvements to your home. Find out if you could be eligible and how to apply.
• Help your heating to work more efficiently. Try using a radiator booster; a simple device that sits on your radiator and circulates the heat more efficiently, saving you between £70 and £140 a year on your bills.
• Try to block any draughts that are coming into your house and make sure you close your curtains to keep the heat in.

£161.07 of our bills is spent on consumer electronics such as DVD's, TV's and computers every year. Bring this cost down with the following tips:

• Don't leave electronics on standby. If you are forgetful, invest in an Energenie standby saver - it will automatically cut the power to any electronics left on standby.
• Don't charge your gadgets unnecessarily. For example, don't leave laptops and mobile phones charging overnight, as this is a big waste of energy.
• Don't leave your computer and peripherals on when you're not using them. Make sure speakers/monitors/printers are turned off when you've finished with them.

A huge £223.02 of our energy bills go towards powering our washing machines, fridges, freezers and cooking appliances. Keep these costs down with these tips:

• Do your washing less frequently. It may sound obvious - but keep the number of wash loads down by making sure the machine is full every time.
• Use the 'economy' setting on your washing machine. Many washing powders will now work at temperatures as low as 30 degrees, helping your machine run more efficiently.
• Dry your clothes outside or on a clothes horse. Tumble dryers use a lot of energy, and should only be used as a last resort.
• Invest in a Hob Gas Saver to reduce the amount of wasted heat and energy when you cook. It simply slots over the gas burner to increase its efficiency, making energy savings of up to 12%.
• Replace your current fridge/freezer with an energy efficient model. Look out for the energy efficiency stickers on modern appliances (pictured below). The greener, the better.

£99.12 of our bills is going towards lighting our homes. The quickest, easiest ways to save on your lighting costs are to:

• Buy energy efficient light bulbs. They last up to 10 times longer than normal lightbulbs and could save you up to £40 over its lifetime.
• Turn the lights off behind you when you leave a room. Try and get into the habit of switching the lights off as you move through the house.

These energy saving tips will help you bring your energy bills down as well as reducing your carbon footprint. However, the quickest and easiest way to save on your energy bills is to compare energy prices online and switch to a cheaper deal. It only takes a few minutes and you could save up to £425 on your energy bills.

Compare gas and electricity prices now