HIGHER energy bills are coming thanks to surging oil prices and the need for vital repairs to the power infrastructure.

Phil Golby, chief executive of Powergen, says that consumers could see their charges rise by up to 20 per cent to pay for gas-fired power stations to replace those burning coal.

On top of this, energy companies are likely to pass on the surging cost of oil to their customers. But you need not resort to wearing coats indoors or sharing bath water just yet. Times Money reports on how to cut your fuel costs.

Switch your supplier Ofgem, the energy regulator, says that fewer than four in ten gas or electricity customers have switched supplier. Some of this reluctance can be attributed to the doorstep mis-selling scandal which came to light a few years after the market was opened to competition. These practices have largely been stamped out and now you do not even have to leave your living room to check if you can save money on your bills.

There are a host of websites that will calculate if any supplier can provide you with cheaper energy and how much money you can save by switching. Some energy companies allow new customers to sign up online too.

Energywatch, a consumer group, has given its seal of approval to nine switching websites listed on its site. They include www. uswitch.com, unravelit.com and saveonyourbills.co.uk. Alternatively, you can telephone Energywatch on 0845 9060708 and it will send you details of cheaper deals within days.

Pay by direct debit Half of all energy customers waste money by paying their bills by cheque, according to new research published by Bacs. The figures show that an average dual-fuel customer will receive an annual discount of more than £40 if they pay their bills by direct debit.

However, this discount only applies to monthly direct debit payments in most cases. Those who pay their quarterly bill direct from their bank account will receive only a £20 rebate from British Gas. NPower and Powergen have no discounts. Read meters regularly Energy companies often estimate customers’ bills. When the meter is then physically read, the bill is recalculated to show how much the customer owes. This means that you could be paying a much bigger bill than you should for the power you have used. You can stop this by reading the meter and contacting the supplier.

Be warned that some energy companies will not notify you if you have overpaid. British Gas tells its customers once a year, but says it is one of the only companies to do this. Ask your supplier if it owes you money, and if it does, ask for a refund. Most energy companies will use any excess payment to cut future bills.

For instance, an overpayment of £60 could be used to give a £5 discount on monthly payments for 12 months, or you could put it in a savings account earning interest at 5 per cent.

Be energy efficient The Energy Savings Trust, a government-backed organisation set up to combat the effects of climate change, says that each household can cut up to £200 a year off their gas and electricity bills by being more environmentally friendly.

Never leaving the television on standby and keeping lights switched off during the day will help to make energy bills smaller, but putting in cavity wall insulation or fitting double glazing will mean even bigger savings.

There are a number of government and company grants available to help with the cost of installing energy-efficient appliances, from lightbulbs to solar panels.

LINKS: Energywatch: 0845 9060708, www.energywatch.org.uk; Energy Savings Trust: 020-7222 0101, www.est.org.uk.