The rising cost of energy prices in many parts of the UK is causing more people to examine the details of their electricity and gas bills with greater scrutiny than before, and to find out exactly why they may be paying more for their utilities. Learning some of the factors involved in determining energy prices can be a useful first step in understanding how your energy bills are calculated, and can help you make positive changes to lower your bills in the future.

Britain is facing a supply problem that has driven up the costs of gas considerably, with wholesale prices reportedly increasing by 25 per cent through 2011. Wholesale gas purchases still account for a substantial proportion of gas supplied to UK homes, due to a lack of domestic gas reserves. Wholesale prices can also be affected by the number of international trades being carried out on certain days, leading to a difference between contract prices.

Different energy suppliers charge different amounts to domestic and commercial customers depending on a number of factors, which take account of individual situations and circumstances. Since Britain's energy markets were deregulated, fierce competition has continually driven down prices as each supplier tries to attract customers over its competitors, but that doesn't mean gas and electricity prices are uniform throughout the market. It is for these reasons that it's important to carry out research using price comparison websites and other tools, allowing you to find the most suitable deals for your situation.

If you're determined to get the lowest price possible from your energy suppliers, you should also check whether they offer discounts for managing your account online or signing up to pay by direct debit. However, even if you manage to negotiate the best possible tariff for your situation, you may still feel you are paying more than you should be in energy bills - which might mean the problem lies closer to home, rather than with the energy industry.

If you live in an older property, making sure your home is insulated and double glazed can lead to instant and long-term savings on heating bills, as properties will be capable of retaining more heat in the winter and holding on to cool air in the summer. If your gas boiler is more than 10 years old, you should also consider replacing it with a modern boiler rated for energy efficiency, as the savings to your gas bill could very soon meet and exceed the cost of installation.

Sean Burke writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.