AS WE REACH the middle of winter, higher energy costs are a stark reality for families as they try to keep warm.

While electricity bills are forecast to increase up to 20% during this quarter, Energy and Water Ombudsman Jane Pires said there's plenty of ways to save money on electricity bills during winter.

"It's important to stay comfortable during a cold winter, but it's equally important to keep costs down for you and your family,” she said.

Ms Pires said the increased use of heaters and hot water during these months can significantly increase energy bills, which could bring an unwelcome surprise at the end of the billing cycle.

"The last thing you want is a nasty shock at the end of the season when you open your electricity or gas bill,” she said.

"Ensure you check your appliances for damage, as faulty, old and inefficient appliances can cause a significant increase in the total amount of energy used in your home or business.

Ms Pires said it was important to check all household appliances for faults causing increased power usage.

"Other ways to help reduce your energy bills include replacing worn fridge seals, using energy-efficient light bulbs, turning off appliances at the wall, insulating walls and ceilings, using a clothes line rather than dryer, and only using washing machines and dishwashers at full capacity,” she said.

"Also, remember to set your air conditioner to an energy-efficient 18-20 degrees in winter, and seal gaps and close doors, windows and curtains to heat rooms quicker and keep them at a comfortable temperature for longer.”