Ann Robinson: You have the power to slow the ever rising cost of energy

While pay is frozen, the cost of living just keeps going up and recent announcements by ScottishPower and Scottish or British Gas that they are increasing their prices again in August will be met with dismay.

These latest increases will push the average annual household energy bill up to 1,193 from 18 August, taking bills to an all-time high. Incredibly, in just over five years energy bills have rocketed by 472 or 71 per cent.

These price increases have started to make affordability and fuel poverty a real issue. Fuel poverty levels in the UK are spiralling dangerously with 6.3 million or almost a quarter of all households now classed as fuel poor - this is where 10 per cent or more of net household income is being spent on energy.

Unfortunately, consumers are paying the price for an energy policy that is disjointed, incoherent and unaffordable. The problems with the market run deep. Massive investment of 200 billion is needed to keep the lights on and to reach the government's ambitious carbon emission reduction targets. This will see the cost of energy rise even further as cheaper, dirty sources are no longer an option.

It's more than likely that consumers will have to foot the bill, seeing the costs passed on through their energy bills. We already pay 84 a year in "hidden" green taxes or levies on our energy bills, but as the need for investment rises and suppliers struggle to hit green targets these taxes could go up, causing our household energy bills to keep growing.

Consumers should act now. One way of safeguarding against future energy price increases is to sign up to a fixed price deal. Similar to a fixed-rate mortgage, fixed price energy plans allow consumers to safeguard against price rises for a set period of time. However, like fixed-rate mortgages, these energy deals can disappear swiftly from the market.

The important thing is that consumers weigh up the pros and cons based on their own personal needs, compare the different plans carefully before signing up and understand fully what protection they are getting and for how long. Fixed-price plans tend to carry early exit penalties so it really does pay to do your homework properly first.

For those who simply want to pay the lowest possible price for their energy and who are prepared to take a chance on price hikes, online energy plans are a good option. These plans are consistently the most competitive in the market, typically coming in at around 200 a year cheaper than standard energy tariffs.

However, the difference between the cheapest online plan and the most expensive standard plan will be 450 a year from August - that is the equivalent of saving around a third off your yearly fuel costs - an amount well worth saving!At the very least, even if you decide that a fixed-price plan isn't an option and that going online isn't for you, you can still get better value from your supplier. There are discounts available for taking both gas and electricity (dual fuel) from the one supplier plus further discounts for paying by monthly direct debit.

The other key step for people to take is to reduce the amount of energy they use by being more energy efficient. Just doing simple common- sense things can save you money. Don't keep appliances on standby, don't leave mobile phones charging up all day and switch lights and gadgets off when no longer needed.

Households should also look to invest in longer-term energy efficiency measures such as insulating lofts and cavity walls, which can cut bills by up to 25 per cent.

Those who would struggle to afford this kind of investment in their home should contact their energy supplier to see whether they qualify for any energy efficiency grants or financial support. Suppliers have a pot of money available to help customers in this way.

The key thing is to start thinking of these things now and not to leave it until your bills have gone through the roof.

• Ann Robinson is director of consumer policy at uSwitch.com