With the cost of oil climbing in the aftermath of the United States and Israel’s joint attack on Iran just under two weeks ago and amid growing fears that a sustained conflict in the Middle East will push up Irish consumers’ energy bills, many are looking at ways to save.
How can I save if prices are going up across the board?
It depends on your situation, but the first thing most households should consider is switching energy provider. More than 70 per cent of households have not done it recently.
But how does that save me money if all suppliers are hiking their prices?
New customers are always likely to be offered more attractive unit rates even in an era of rising prices. How much depends on what happens next, but savings of as much as 20 per cent are on the table for those who move sooner rather than later. If we look to the early days Russia’s war on Ukraine, we saw the incentives offered to switchers shrinking, but for now there is value to be found.
Is there anything else I can do?
There is. Moderating energy usage in the home is another avenue consumers can explore.
What do you mean by that?
According to the Sustainable Energy Authority of Ireland (SEAI), lowering your household thermostat by just one degree could see your heating bills fall by 10 per cent and that could amount to more than €200 saved over a year for many households. It is important to stress that while turning the heat down slightly will work for many, no one should be forced to live in a freezing home to save money.
I have the heat lowered. What else can be done?
The biggest drains on household energy, the SEAI says, are the shower, the tumble drier, the oven, the washing machine and the kettle. It advises “sensible” use of these.
What does sensible mean?
In essence it means washing machines and dishwashers should only be run when full and run on eco settings or lower temperatures.
Clothes washed at 30 degrees instead of the default 40 degrees will save money and make no appreciable difference to the outcome.
What about the shower? Are you telling me to wash less?
No, but spending one minute less in the shower every morning will save money, particularly in a busy household, as will better heat and light management in rooms infrequently used.
Avoiding the use of an immersion or tumble drier will also make an impact.
Will this really make a difference?
On a one-off basis such measures will amount to savings that are negligible, but spread over a year a concerted effort to use energy smarter could cut an annual bill by another 10 per cent, which might equate to savings of in excess of €300.
And how can I combat rising petrol or diesel prices?
When it comes to driving, the easiest way to save is to drive less and walk or cycle more. Outside of that, the AA has multiple tips that will, it says, save motorist money.
Such as?
Among the suggestions it has is advise to accelerate and brake gently while reducing speed. A car travelling at 120km/h uses around 20 per cent more fuel than one travelling at 100km/h. The time the higher speed cuts from even long journeys is negligible.
The AA advises motorists to focus on steady speeds and to use a car’s cruise control function if it has one.
Anything else?
The AA also cautions people to empty their car boots of unnecessary weight, to use air conditioning sparingly and to remove roof racks, roof boxes and cycle racks unless in use as these act as a drag on a car and cause the cost of motoring climb unnecessarily.
What can the Government do to help?
Quite a bit actually. It is a big winner as a result of rising energy prices, given the high rates of tax attached all forms of energy in Ireland.
It could cut the excise duty or VAT on these products at the stroke of a pen, which could easily knock 10 or 20 per cent of costs to consumers.
It did something similar at the start of the war in Ukraine and if the conflict in the Middle East endures you can expect calls for it to support Irish consumers to grow louder.