We would all like to pay less for our utilities. Here's how to get the best deals for electricity, gas, water and telecommunications, writes Harvey Grennan.

Have you switched your electricity supplier on the promise of a better deal, only to find that the expected savings did not materialise? Well, you are not alone.

There are two ways of saving money on ever-increasing energy bills. The first is to shop around for the best deal; the second is to put your efforts into reducing your household energy usage.

With much of the retail energy market now in private ownership, there are plenty of deals around that promise to reduce your power bills by hundreds of dollars – by bundling your electricity and gas bills, for example. But how good are these offers?

Some utilities offer a high percentage discount but work off a high base rate. In that case it may work out cheaper to get a smaller discount off a lower base rate. Also, the discount may apply only to usage and not to the whole bill. Then there's the question of exit fees if you decide to terminate the contract early. You should be aware that some of the comparison websites that promise to find you the best deal are run by brokers taking a commission from 'preferred suppliers', so their recommendations may not necessarily include every supplier or deal.

When shopping around, be sure to do your homework properly. You can get independent advice comparing the prices offered by energy retailers on state government websites such as myenergyoffers.nsw.gov.au, yourchoice.vic.gov.au and www.qca.org.au/comparator. It's good practice to review your energy contracts annually.

The other approach to cutting energy and water bills is to reduce consumption. Of course, it makes sense to choose energy-efficient appliances when you replace old ones (particularly a solar, heat-pump or gas hot-water system) but there are immediate steps you can take at little or no cost, such as using energy-efficient fluorescent or LED light bulbs.

Electric hot water is usually the biggest-ticket item on any power bill, but you can cut usage and expenses by taking shorter showers, installing a low-flow showerhead and using cold water in your washing machine and hot water in your dishwasher (if connected to a hot water tap). Use the economy settings on these appliances, wash only when you have a full load and avoid using a clothes dryer if the sun is shining.

The next biggest slug on your wallet is probably home heating and cooling. Adjust the temperature on the thermostat of your airconditioner or heater a bit higher in summer and a bit lower in winter. Try putting on an extra blanket or jumper in cold weather instead of automatically switching on the heater; close doors, curtains and blinds; block draughts around doors and windows with 'snakes' or draught excluders; and heat/cool only those areas of the house that you are using. Or use a fan to cool you down instead. Longer-term solutions that won't cost you an arm and a leg include ceiling insulation and window awnings.

There are gadgets that can help you monitor and reduce your power and water consumption. A simple example is a shower meter to measure how much water you're using.

A lot of power is wasted by leaving computers, DVDs, games consoles, television sets and other appliances switched on at the wall. The Department of Climate Change and Energy Efficiency has found this standby power can account for 10 per cent of household energy consumption. New products using 'master-slave' technology, such as the FutureSwitch, make it possible to turn off a group of appliances with a single wireless remote switch.

Another simple tip is to use your microwave oven for cooking whenever possible. It uses less than half the power of a conventional electric oven.

Often it's one particular appliance that is silently draining your pocket. You can check the power consumption and cost of an individual appliance with a gizmo called a Power-Mate. Check with your local council; some make Power-Mates available to residents for borrowing. The next big thing now being rolled out is a smart meter, which records your electricity consumption and relays it electronically to your supplier.

On the water front, the latest in plumbing technology is the Hibernating House system. This monitors the water usage of a household and provides protection against unexpected and potentially damaging burst pipes.

Another way to save on the household budget is to bundle all your phone and internet charges into a single bill, but this can be just as confusing as bundling power and gas. There are many deals going (and door-to-door salespeople knocking), but regardless, you can often negotiate a better deal with a telco over the phone; for instance, you might ask for credits of $10 a month or more on your mobile phone plan and wireless internet. Once again, it pays to shop around; websites such as phonechoice.com.au and youcompare.com.au are useful in this process. For really cheap phone calls, you can switch to the VoIP (voice over internet protocol) system, which uses the internet for phone calls, although there can be voice-quality problems. Go to voipchoice.com.au to compare plans.

More savings

Despite the end of the Green Loans program, there are still government incentives to save energy and water. Households that replace an existing electric storage hot water system with a solar or heat-pump system or install a renewable electricity system – solar, wind or hydro – may be eligible for federal rebates or credits. Some states also offer free or low-fee home energy audits, and rebates for rainwater tanks, solar power and dual-flush toilets. Go to livinggreener.gov.au and look under Rebates and Assistance.

Five ways to save energy

1 Set your fridge temperature to 4-5°C and freezer no colder than -18°C.
2 Use solar lighting for your verandah and garden.
3 Install timer switches on lights.
4 Switch off the light when you leave the room.
5 Turn off your hot-water system when you go away for extended periods.

Useful websites

www.savepower.nsw.gov.au
www.resourcesmart.vic.gov.au
www.agl.com.au/home/energy-efficiency

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