Everyone likes to feel that they have got a bargain when they buy something new, particularly if it's something expensive like a fridge or washing machine. One tried and tested method is to shop around, and the Internet has taken a lot of the hassle out of this. You can now compare prices at several different retailers from the comfort of your own home. As well as specialist on-line retailers of domestic appliances, most high-street retailers now have an Internet site where you can check their prices.

However, when they are buying a fridge or washing machine, most people only factor in the up-front cost, and don't think about the cost of the electricity that it takes to run the appliance over its lifetime. And this can add up to a surprisingly large amount. In fact, sometimes the savings from an energy-efficient fridge or other appliance are so great, they will almost cover the cost of buying the appliance in the first place! So when it comes to replacing appliances, you can actually save the most money by buying an energy efficient model.

Take fridges and freezers, which are the hardest working appliance in your home. They are on all day, every day of the year. They can account for a quarter of your electricity bill. If your fridge or freezer isn't energy efficient, you could be paying through the nose. New energy saving fridge freezers use two thirds less energy than other models and can save you up to £45 a year on your bills. So when buying a fridge freezer, you should look for the most energy-efficient.

Dishwashers are now thought to have about the same environmental impact as washing up by hand. They use electricity, but use less water and water heating. The balance is tipped in the dishwasher's favour if you use an energy saving dishwasher. To run a cycle on an inefficient appliance costs around 16p but to run the same cycle on an energy saving machine will cost you only 9p. A difference of 7p per wash. Energy saving dishwashers use 40 per cent less energy which should equate to around £20 off the average electricity bill each year.

The average washing machine does around 1 wash every weekday, and wastes a very large amount of energy. Buy an energy saving washing machine and you can use a fraction of the energy of old energy-hungry models. Again this can equate to a saving of around £20 from your electricity bill. The same applies to a tumble dryer, where the most energy efficient models will save you around £15 per year over standard models.

So all in all you can save around £100 a year on your electricity bills if you buy the most energy efficient appliances. Given that they last around 10 years, this will add up to around £1,000. Now that is some saving!

But how do you know which appliances are most efficient? Well, each model of appliance now receives a rating from the European Union for its energy efficiency. The EU energy label rates products from A++ (the most efficient/least energy used), down to G (the least efficient/most energy used). By law, the label must be shown on all refrigeration and laundry appliances, dishwashers, electric ovens and lightbulb packaging. In the UK you can also recognise the most efficient appliances because they are approved by the Energy Saving Trust, and have an ‘Energy Saving Recommended logo'. Your on-line retailer should give you this information when you browse available models. If they don't, then try another one that does; there's plenty of choice.