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Looking back, 30th
of July 2008 might well be marked as a watershed date for Britain's energy consumers. On that date, British Gas announced an
unprecedented increase on the price of gas - an astounding 35% - marking the
single biggest increase ever announced by any of the big six suppliers in the UK.
Because most consumers
already pay about 60% of their household energy bills on gas, British Gas
decision to raise electricity prices by only 9% at the same time will do
nothing to undo the damage that has been done.
The energy markets are
still struggling with the aftermath of this shock. Four of the Big 6 energy suppliers (E.ON,
npower, ScottishPower, and the Scottish and Southern Group), which together
supply about 70% of the UK's households, are furiously working their
calculators, deciding by how much to up their own standard rate prices.
So while this is going
on, what should energy consumers do to protect themselves?
First of all get
angry. Suppliers are not about to
reward you for loyalty. If you have not
recently switched tariff or supplier, you will gain nothing by doing
nothing.
Come early November,
the effect of these recent price increases will be felt. And the effect will be massive if you have
been paying £70 a month on your gas direct debit the average of what we see
go through our service then your new annual gas bill will suddenly be
£1,130. You need to ask yourself: can I really
afford that? Secondly start looking. You
may be thinking that you have missed out on signing up to the cheapest fixed
price energy deal, these are limited availability tariffs that come with a
guarantee against price increases.
The good news is that ScottishPower has now re-entered the ring
by offering an attractive one year price fix tariff which is available from our
service (if you are currently supplier by ScottishPower you will need to
contact them directly).
So now is a good time
to look again. The ScottishPower offer does
generally compare favourably against the current British Gas 2011 offer and the
EDF Fixed Price 2009 offers (both available from the suppliers directly, but
shown on our service for comparison purposes).
Thirdly switch tactically. If you cannot find a capped rate that works
within your budget, switch to the cheapest deal overall using our service, there are savings available of up to £300 on an annualised basis, but be prepared to switch again in 4-6 month's
time when you are notified of a price increase. So be an aware consumer and keep your eyes
peeled for deals, that means know where your bills are and have them ready so
you can act when that price increase announcement comes through.
Finally use less energy. When energy prices increase by 35% in one hit
and there is no end in sight to future price increases, something has to give.
Just visit the Energy Savings Trust website (www.est.org.uk)
and follow their excellent advice, the Energy Savings Trust really does offer
the UK's
one-stop shop for energy savings advice.
And be a little
sceptical about some of the advice that is being given at the moment. We have noted with great concern that the
self-appointed UK
consumer champion Martin Lewis (also known as the Money Savings Expert) has
recently told people not to switch
energy supplier.
This advice has left
us scratching our head the last time Mr Lewis told the country not to switch early in 2008, suppliers
like npower and ScottishPower were offering generous 3 year capped rates that
are now long withdrawn. Customers who followed Mr Lewis advice then totally lost
out on those offers! With ScottishPower
now offering a good capped rate it does not make sense to wait. |