rising energy costs
March 19, 2008 by credit4everyone
Filed under bills
With the rising energy prices a recent poll on moneysupermarket.com revealed that the majority of consumers believe they are paying too much for their gas and electricity and that recent price increases are totally unjustified. Five of the big six energy firms - British Gas, EDF Energy, Eon, Npower and Scottish Power - have increased their gas and electricity prices by an average of 15% since the beginning of the year. The typical household now pays more than £1,000 a year for energy - up from around £650 three years ago.
What should consumers?
The message is simple - move to the best deal you can. Despite the recent price increases, there are still significant savings to be made.Six out of 10 households have never changed their energy provider and are still on the standard tariff paying quarterly by cash or cheque. By switching to an online tariff and opting to pay monthly by direct debit, the average household could save up to £260 a year. Which provider works out to be the cheapest, will depend on your consumption and whereabouts in the country you live. A gas and electricity comparison tool should identify the cheapest deal in your area - but here is an indication of how the providers compare:
| Provider | Average standard tariff* |
Average online tariff** |
Saving |
| British Gas | £1,055 | £878 | £177 |
| EDF Energy | £1,007 | n/a | n/a |
| Eon | £1,063 | £769 | £294 |
| Npower | £1,056 | £795 | £261 |
| Scottish Power | £1,100 | £944 | £156 |
| SSE | £890 | £804 | £86 |
*Payment by quarterly bill.
**Payment by monthly direct debit.
Source: www,moneysupermarket.com March 4 2008 There are a few things to bear in mind when comparing deals at the moment. Remember that SSE has yet to increase its prices, so if you opt for one of its deals, your bills may rise in the next few months. Also, while Eon and Npower have recently hiked the cost of their standard tariffs, the costs of their online deals have not changed, so they too may go up in the near future.Nevertheless, this shouldn’t put you off shopping around. None of the leading providers issue 12month contracts so you can easily move again should your rate rise sharply.
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