Save on energy bills and stay cool for less this summer

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A friend jack-hammered the swimming pool at his holiday house because he was sick of the high-energy bills that came with running a pool cleaner, plus chemicals and pool cover.

His family rarely used the pool; the house was a few minutes to the beach.

He estimates his drastic action will save around $3000 a year.

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Sometimes you have to take radical action to cut your energy expenses. The best place to start is to work out what you are spending on energy.

The Australian energy market is the most competitive in the world, says Mark Brownfield, general manager of marketing and retail sales at AGL.

He suggests you call your retailer for a discount, emphasising: "Am I on the best plan and do I have the best deal?"

The fact that discounts don't automatically flow through to customers was a revelation to me. Not all states have competitive retailers but Brownfield estimates consumers in Victoria can save 12% to 15% off their gas and electricity bills, in South Australia 10% to 15%, NSW 8% to 12% and Queensland 5% to 7%. Tasmania is only beginning to become competitive while WA and the Northern Territory have little competition.

After you hunt down discounts it's time to reduce the energy you use.

You may need to spend some money by installing insulation in your roof to keep the heat out in summer and in throughout winter. You can cut your heating and cooling bills by as much as 45% with insulation.

On sweltering days, try to resist the temptation to rev up your cooling systems.

The most economical room temperature range should be between 23 and 26 degrees in hot weather.

"Every one degree uses another 10% of energy," explains Brownfield. The elderly and those with health needs will need cooler temperatures.

You can spend between $35 and $520 a year on cooling your home, depending what system you use, according to the NSW Government's Environment & Heritage Department.

A 166 square metre home can cost around $520 a year if using a ducted, 20-kilowatt air conditioning system, running for 500 hours at 65% capacity, according to Smarter Choice Cooling.

Using evaporative cooling costs $180 while portable or ceiling fans cost around $35 a year.

The right-size air conditioner, with a timer, for a particular room is much cheaper than a big system. A reverse cycle model is efficient too.

Your can draught-proof your house to keep the heat and cold out. Blinds or curtains or vegetation, particularly around western-facing windows, help keep your house cool.

Save fridge costs by ventilating the area around it. An energy-efficient fridge with a high star rating can save up to $100 a year.

Your state government may pay you to give up your second fridge, which may be costing as much as $200 a year to run.

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Susan has been a finance journalist for more than 30 years, beginning at the Australian Financial Review before moving to the Sydney Morning Herald. She edited a superannuation magazine, Superfunds, for the Association of Superannuation Funds of Australia, and writes regularly on superannuation and managed funds. She's also author of the best-selling book Women and Money.