Energy bill fall 'unlikely' - 02/07/2012

Households have been warned they are unlikely to see a reduction in energy bills this summer, despite Ovo Energy announcing a 4.5 per cent price cut.

The company revealed it plans to lower its new dual fuel fixed tariff costs, so the average family will pay £1,088 a year for the New Energy tariff rather than £1,140.

However, director at Energyhelpline.com Mark Todd claimed prices remain more likely to increase than fall.

"Any cuts are welcome but it's important to realise on the whole, the cheapest deals are still £24 more expensive than they were in January this year," the expert stated.

Mr Todd added that the energy market is "really volatile at the moment" and although wholesale prices have been in a slight decline recently, this could easily change.

He stated: "The tide could easily turn and consumers should be prepared for possible rises in the run up to winter."

It was noted that in the forthcoming months several factors including the double-dip recession and green measure funding could either lead to energy prices rising or falling, with the outcome difficult to predict.

Mr Todd explained how there has been a "big shake up" of the tariff league table, with the cheapest options currently coming from EDF, Sainsbury's Energy, npower and Scottish Power.

The expert said: "Whilst six months ago, smaller players like first:utility and Ovo dominated the cheapest prices, they have been pushed down the list and don't even make the top five."

As a result, Mr Todd urged people to ensure they "shop around" for their energy in order to stay on top of fluctuating deals.

EDF's Blue+ Price Promise is currently offering the best deal at £1,054 per year, while Scottish Power's Online Energy Saver 19 takes second place.

Ovo is in sixth place, with the cuts effective immediately and applying to its fixed tariffs, providing a saving of 4.4 per cent on gas and 4.8 per cent on electricity.

Make sure you're not paying too much for your energy - compare gas and electricity prices now at energyhelpline.com or call 0800 074 0745.