Energy bills will still cost £250 a year more than in January 2008

Consumers are being warned not to become complacent about energy bills following speculation about price cuts next year. According to uSwitch.com, the independent price comparison and switching service, a 10% cut in energy bills would shave £129 off the current average bill of £1,293, taking it down to £1,164. However, this is still £252 or 28% higher than the average bill of £912 households were paying at the beginning of 2008.

A 20% price cut would save consumers £259 off their household energy bill, taking it down to £1,034. But again, this is still £122 or 13% higher than the £912 households were paying in January this year.

Not only would both cuts fall short of making up the 42% or £381 hike consumers have seen this year, but if the reduction comes towards spring 2009 it could also be too late to help people struggling with this year's winter fuel bills. Households will have been forced to bear the full brunt of this year's price rises while using more energy to heat their homes.

Over 15 million households may have turned the thermostat down this winter because of cost concerns, but the worry now is that consumers will stop taking action to protect themselves against the impact of higher energy prices in the mistaken belief that price cuts will resolve the issue next year. They are being urged to make sure they are paying the lowest price for their energy and to cut back on the amount they use.

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Rumours of price cuts tomorrow could be enough to stop consumers from cutting their own energy bills today. This is a wasted opportunity as consumers are yet to feel the full impact of this year's price rises in their winter bill, but still have time to do something positive about it.

"Rather than waiting for suppliers to reduce prices, I would urge all householders to take action now by ensuring they are paying the lowest possible price for their energy and learning to use less of it. Moving to dual fuel, paying by direct debit and signing up to an online plan will all help save money - in fact switching to a competitive plan could save you up to £350.

"Using energy efficient light bulbs, switching lights off and not leaving TVs and DVD players on standby, are simple steps that will help reduce the amount of energy you use. You should also talk to your supplier to see if they can help you with a grant or funding towards more expensive energy efficiency steps such as insulating your home or getting an energy efficient boiler."

Don't wait for price cuts - uSwitch.com's New Year guide to cheaper fuel bills:

1) Compare and switch - never switched? Then now is not the time to be complacent as you are likely to be paying a premium on your energy bills. Getting the right deal for you - dependent on where you live, your actual energy usage and how you like to pay - is key to saving those pounds. If you use a price comparison service, check that it is accredited under the Consumer Focus Confidence Code, impartial and upfront about how it earns its money.

2) Pay the easy way - if you pay by cash or cheque you could be paying £94 a year on average more for your energy than paying by direct debit. Not only is direct debit easy, but many suppliers offer a discount for paying this way.

3) Switch two for one - dual fuel (buying gas and electricity from one supplier) can save time and money. Not only do you benefit from dealing with just one bill and one supplier, but dual fuel plans can also offer a discount.

4) Go online - customers on standard plans are paying on average £168 more than new online customers. This is an easy saving to make - don't be put off by it being called an ‘online' plan as some suppliers will only expect you to register online and then manage your account in the same way as before.

5) Keep on top of energy bills - make sure you give regular meter readings to ensure you are being billed accurately and review your energy bills at least once a year to ensure you are still on the cheapest deal.

6) Insulate, insulate, insulate - don't spend hard earned cash heating up the street and not your home. Make sure your loft is insulated to a depth of at least 10 inches.

7) Shed some light on savings - contact your supplier or the Energy Saving Trust to find out whether you would be eligible for a grant or financial help towards making your home more energy efficient.

8) Switch it off - before you go to bed make sure you turn off all appliances such as TVs, computers and DVD players at the socket. Fit energy efficient light bulbs and make sure you turn lights off when not using a room.

9) Turn it down - most of us have the heating on way too hot. Turn it down by just one degree and you could save up to 10% on bills.

10) Cut out the draughts - check your windows and doors are sealed against draughts before the winter chill turns your home into an icebox.

For more information visit uSwitch.com