The days of cheap energy are over. In 2008, household energy bills rose by an average of £381, or 42 per cent, and price cuts in 2009 to date have only amounted to £48, or 3.7 per cent on average. No-one yet knows whether there will be further cuts, but the long term trend is most definitely upwards.

The reasons for the increase in gas and electricity costs are many. The UK now no longer has the ability to provide all of its own gas and electricity, so it has to buy in from abroad, often from relatively unstable countries who know full well they are operating in a seller's market and price their products accordingly.

Gas is a finite resource and power companies are having to look further - and in more expensive ways - to get it out of the ground in the required quantities. There's also much more demand for it around the world - as developing countries industrialise and improve standards of living, more and more people need access to heat and power their homes.

And power stations are much more expensive to run. From the cost of the raw materials, to environmental controls and funding for the next generation of stations. All of these costs are going to be reflected in our bills.

But that doesn't mean you can't cut your costs. When you're looking for cheap gas, electricity or communications providers, there are plenty of firms out there keen to win your business with a number of deals. Energy suppliers in particular have a diverse range of deals and incentives to attract and retain customers.

Work it out

The first thing you need to do if work out what deal you're on and how much you're using. Your bill will tell you the tariff you're on and you only need to find out how much you're paying each month, quarter or year to check your usage - you don't need to start watching the meter.

Then it's simply a case of logging on to a comparison site - uSwitch is the best known, but there are plenty of others - to compare deals. To get the best view of the market, the internet really is the main place to look, but don't fear if you're not online. You can call and you'll get almost the same deals as you would online. Remember though, that some providers have special online-only deals that you won't have access to.

Cheapest options

There are two main ways that anyone can cut their costs. The first is to pay monthly by direct debit, which is always cheaper than simply paying the bill when it arrives -or worse, using a pre-payment card, which is by far and away the most expensive way of paying your bill. Providers like direct debits because they have a guaranteed income every month and don't have to spend time chasing up late payers. You can save up to 10 per cent of your bill simply by switching to direct debit from just paying the bill when it arrives.

The second is to bundle your requirements. If you need both gas and electricity, you will save more money if you take both out with the same provider.

Will Marples, energy expert at uSwitch, says: "Online energy plans are currently offering consumers the lowest prices, but just 5% - 1.3 million households - are signed up to one. I would urge anyone coming off a fixed plan in the near future to follow three simple steps to make sure they are getting a good deal: move to dual fuel, pay by direct debit and sign up to an online plan."

"Those who are tempted to fix again need to be aware that most fixed or capped plans now carry an exit fee if you leave before the fixed or capped period finishes. Consumers should always check the small print carefully and ensure that an energy plan meets their needs before signing on the dotted line. Fixed plans are definitely right for some consumers, but in a time of potentially falling prices they could be the wrong move for many more."

"Consumers can help themselves by following three simple steps: move to dual fuel, pay by direct debit and sign up to an online plan. Don't be put off by the fact that it is called an online plan - with some suppliers only requiring you to register online, this is a small obstacle that is very easy to overcome after which you can run your account as usual. There really is an online energy plan to suit everyone."