If you've noticed an increase in your electricity bill, chances are you're looking for ways to cut costs. Below, we break down why costs are rising in the first place, and what you can do about it.

Why Power Costs Are Rising

In short, upgrading Australia's power grid costs money. Why do we need upgrades? Well, it all comes down to supply and demand.

Here's what we mean. From air conditioning to WiFi, Australian households use a lot of power. And, as the population grows, the demand on the power system intensifies. Supply must keep up with demand, or else we risk power outages and inefficient electricity.

The answer? Modernisation. Whether it's upgrading power lines or replacing transmission poles, modernising the network costs money... and, unfortunately, consumers pay the price. 

Reducing Your Energy Bill

So, here are eight ways that power costs can be reduced in any household.

1. Close the Doors

To ensure you retain heat in each room, keep doors and windows closed. On the other hand, in the summer, open some windows before you turn up the air conditioning.

2. Turn the Heating Down

Turn the thermostat down a degree or two. You can save 10% on power costs per degree!

3. Use Cold Water

Consider using a colder wash setting for your laundry unless it's a heavily soiled load. You use less power because you're not heating the water up so much, which means you're paying less per wash cycle.

4. Switch Those Lightbulbs

Consider changing out those old incandescent bulbs for LEDs. It might not seem like a great way to save money, but here's how much it costs to use each bulb per quarter:

• Incandescent: $35 per bulb

• LED: $7 per bulb

That's a pretty big difference when you're lighting a whole house!

5. Turn Off Power at the Wall

If you leave appliances like like TVs, laptops and cookers switched on at the wall overnight, then you're wasting power. Always switch off electrical items when they'll not be in use for a while.

6. Switch Energy Providers

Have you been with your current provider for a few years? Well, you'll probably find there's a cheaper tariff available elsewhere if you shop around for it. Take a look online and see what options are out there.

7. Get a Smart Meter

With a smart meter, you can check how much power you use on an average day, and which appliances use the most electricity. It's a good idea to ask your energy supplier if a smart meter is available on your tariff.

8. Insulate Your Home

If you can afford it, home insulation is a great investment. According to official statistics, it can actually save you up to 50% a year on electricity costs!

Conclusion

Electricity costs are rising, but there's good news – make a few simple changes around the home, and power costs can be reduced. All it takes is some consistency and switching up a few habits.