Centrica, the owner of British Gas, announced on Thursday 31st July, that it's raising its gas prices by 35 per cent. Electricity will rise by 9 per cent and dual fuel prices will rise by 25 per cent.

It's come about because profit from the residential side of the business fell by 69 per cent in the first half of this year. But this is little consolation to homeowners who have already had to tighten the purse strings. Centrica's 16 million customers will pay an extra £261 a year for energy, bringing the average bill to £1,305.

Although these are the most severe price rises this year, they follow similar increases by EDF who raised electricity prices by 17 per cent and gas bills by 22 per cent.

So faced with unavoidable price increases, what can we do to reduce our energy costs?

1. Use an internet comparison site to find the cheapest deal for your requirements.
2. Check your entitlements - billions of pounds go unclaimed every year , it's particularly worth looking into if you're on a state pension.
3. Ask your supplier about social tariffs, there are no strict rules about who receives them but they're aimed at the disabled, the elderly and people with young children.
4. Energy companies often overcharge so check your old statements.
5. Get a government grant to insulate our home, you could get up to £4,000.
6. Turn off appliances, lights and radiators when you don't need them and don't leave computers and televisions on standby.
7. Call National Energy Action for free advice on how you can save money on your power bill.