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18 May 2012: Energy prices rise seven times faster than incomes
It has been revealed that the cost of rising energy bills has grown seven times faster than the average income over the past 8 years, greatly impacting hard-pressed consumers’ finances.
Since 2004 energy costs have risen from an average of £522 a year to the current £1,322 a year, according to Ofgem statistics. This amounts to a rise of over 150%, which is significantly higher than the 20% increase in the average household income during the same period.
The figures highlight the increasing pressures facing consumers across the UK, with more of a household’s income allocated to utility bill costs. In fact it is estimated that energy costs now take up 3.2% of a household’s income, double the 1.6% in 2004.
The best way for recession-hit consumers to cut their spending is to regularly compare energy suppliers to ensure they are receiving the best possible deal. Why not compare your supplier now?
to compare suppliers and find the right choice for you11 May 2012: British Gas Warns of Price Rises
British Gas has warned of possible price rises today because of rising wholesale prices.This is the starkest warning yet that consumers will be faced with some hefty bill increases later this year. British Gas is the biggest energy supplier in the UK, supplying gas to almost 10 million households, so this should be taken very seriously.
From what we are hearing, other suppliers are feeling similar pressures, so further price rises across the board are very possible. Historically, the most common time for suppliers to up their prices is from July until September so we could actually see price hikes much before the winter. Wholesale gas increases of 15 per cent typically translate to bill increases of 10 per cent, so we could expect the average bill to rise by around £80 a year. On top of this, British Gas has also said that other costs have increased by £50 per household. In total, this would translate to a £130 a year or 19 per cent gas price rise. This would take the average UK gas and electricity bill to over £1,400 a year, the highest ever in history and beating the previous record years of 2011 and 2008.
Many people will be asking themselves today how long before all my salary just goes on my energy bill? The news today is a stark, stark warning but the good news is that customers can do something about it. You can switch to a fixed rate tariff but you need to do it as soon as possible. The earlier the switch, the cheaper the prices will be. The best fixed deal available will save a typical household £268 a year.
to compare suppliers and find the right choice for you4 May 2012: Activists protest at energy summit
Activists have staged a protest at the UK Energy Summit in London, news outlets have reported. The activists, who include members of climate change groups as well as anti-cuts protestors attempted to disrupt the summit which was attended by the bosses of the ‘Big Six’ energy companies.
Reacting to reports that the summit had been protested, Mark Todd, Director at independent price comparison service Energyhelpline.com said: “Clearly public feeling over rising energy bills is spilling over into anger and people are desperate to make their objections heard.
“While not all energy customers take such extreme action to air their disapproval at rising energy prices, this is symptomatic of the public feeling towards the industry. Consumers are bombarded with messages of bumper profits and rising prices, all while many struggle to afford to heat their homes.
“Households are increasingly being squeezed by rising bills and many feel that the government and Ofgem are not doing enough to regulate the market and keep prices down.
“It’s important to remember that customers can take matters into their own hands and typically cut their bills by around £300 a year by switching supplier. Currently 75% of customers are not active in the switching market and remain on expensive standard tariffs. Protests like this will raise awareness, but only when customers vote with their feet will suppliers really sit up and take notice.”
To see if you could save hundreds from your energy bill, why not compare prices today and find out the best deal for you?
to compare suppliers and find the right choice for you24 April 2012: Two new cheap deals from npower
Consumers looking for deals on cheap energy will be interested to know that npower has just launched two new cheap tariffs, Bill Saver August 2013 and Go Fix 12.
Bill Saver August 2013 guarantees that you will receive a 7% lower bill than npowers standard variable off-line tariff until August 31, 2013. The tariff is currently 5th cheapest on average , with the typical dual fuel bill for this tariff working out at £1,061 per year. This is a savings of £261 from the standard national average dual fuel bill of £1,322 (source: Ofgem). To qualify for these savings, customers will have to take their supply from npower and pay using the same payment method for a full 12 month period.
The Go Fix 12 tariff is a new fixed price option from npower, with prices fixed until 31 August 2013. This tariff features paperless billing and an extended customer service number service. However cancellation penalties of £20 per fuel are applied if you cancel prior to 31 August 2013.
To see if you could save hundreds from your energy bill, why not compare prices today and find out the best deal for you?
to compare suppliers and find the right choice for you12 April 2012: Energy firms to be required to tell customers their best deal
Under a new Government proposal, the Big Six energy companies will be required to tell their customers their best tariff and how they can get it. The new program is expected to start in the autumn and will mean the Big Six providers will have to write to their customers once a year to advise them if they could be on a cheaper tariff.
Responding to the news, Paul Green, Chief Executive at Energyhelpline.com, said: “This is certainly a step in the right direction but it would be wrong to regard it as a panacea.
“The real issue is that 75% of customers are not currently active in the switching market. The government should be encouraging these people to participate and to look at the cheapest deals on offer from all suppliers, not just the one they are currently with. If everyone shopped around for their cheapest deal, UK consumers could save much more than £100 a year. The current typical saving is £295 – three times what Nick Clegg’s scheme is offering.”
The best way for consumers could save hundreds of pounds on their energy bills is by using a price comparison site to compare all suppliers and tariffs. Regularly comparing energy suppliers ensures that you will always be aware of the best possible deals.
to compare suppliers and find the right choice for you30 March 2012: Energyhelpline launches Huge Switch campaign
Energyhelpline has today announced the launch of the Huge Switch, a collective purchasing scheme designed to offer consumers a better deal for their energy.
The scheme works in a similar way to how other recent high-profile collective purchasing campaigns. Customers register for the program through the energyhelpline website prior to the mid-April closing date, then energyhelpline will contact suppliers to negotiate a deal for the entire group.
How the Huge Switch differs from other schemes however, is that customers can see what the current available best market price is for them when they register, so they can switch immediately if they prefer. The Huge Switch also logs customer’s preferences, so those looking for a green tariff or for a tariff with no standing charges for example can still take part in the collective bargaining experience.
A spokesman for consumer advocate group Which? commented, "It's great to see more collective switching schemes being launched that have the potential to shake up the energy market.
"If done right, we think that joining together to negotiate better deals should be good for hard-pressed energy customers. We encourage people to register with as many schemes as possible to get the best tariff."
to compare suppliers and find the right choice for you15 March 2012: Ovo announces price rise
Ovo, who in the past have been at the forefront of price drops, have today announced a price rise for both their dual fuel and electricity-only customers. The rises, which became effective today for new and renewing customers, will see fixed price dual fuel bills rise on average 7.7%, while fixed price electricity-only customers will see their bills jump 3%. The typical annual dual fuel cost for an Ovo customer on a fixed price tariff after the price increase will be £1,140.Existing Ovo customers on variable rate tariffs will see their bills rise by 6.2% from May 3, making the average dual fuel household bill on a variable rate Ovo tariff £1,190. Rising wholesale prices have been cited by the supplier as the reason behind the increase.
Ovo customers on fixed deals will continue to stay on their fixed price, and won’t see an increase to their bills. However, customers should check their contract to ensure that they aren’t near their renewal date, as the default renewal option is onto the variable rate which has increased.
Price rises are an ideal reminder of the importance of comparing your energy suppliers regularly. Comparing suppliers and tariffs can ensure that you are always receiving the best deal for your energy needs, and you could save hundreds of pounds from your bills.
to compare suppliers and find the right choice for you7 March 2012: Costs of bills expected to rise long term
Energy customers will be alarmed to hear comments by a leading energy supplier stating that bills are likely to continue to rise for the next 10 years.
Phil Bentley, Managing Director of British Gas stated, “People will have to pay more per unit [over the next 10 years] and they are therefore going to have to be more diligent in saving energy.” The cost of green taxes and improving the national grid has been cited as reasons for the expected increase.
The prediction will be quite a worry for hard-pressed consumers in the UK, who have absorbed energy price increases last year. Even with the recent round of price cuts from the energy suppliers, household utility bills are still significantly higher than they were at the same point last year.
The best way for individuals to ensure they aren’t paying too much money for their utilities is to use a price comparison service to compare suppliers and tariffs. By doing so you could save hundreds of pounds from your annual energy bill.
to compare suppliers and find the right choice for you27 February 2012: British Gas post £522m profit
British Gas has announced their results for the 2011 financial year, posting an overall profit of £522m for their residential energy division. The results are down 30% on 2010’s figures.
British Gas is part of FTSE 100 Group Centrica. Centrica posted a profit of £2.4 billion of which over £2 billion was made in the UK. The group profits were slightly up.
The profit slide in the British Gas division has been attributed in part to the much milder winter weather the UK has been experiencing this year, causing less demand for domestic energy. In addition the company has blamed rising wholesale prices earlier in the year for the dent in their profits. These increases though helped their gas extraction and electricity generation divisions to post much increased profits.
Sam Laidlaw, chairman of British Gas’ parent company Centrica, said: “2011 was a tough year, both for Centrica and our customers.”
Of late, energy prices have been dropping thus some new low costs tariffs have been brought out including one from Sainsbury’s Energy that is provided by British Gas. Full details are available by doing a price comparison.
to compare suppliers and find the right choice for you3 February 2012: Cold weather brings energy woes
The UK is currently gripped by a bitter cold weather spell that has sent temperatures across the country plummeting. With forecasters predicting that the country may face a prolonged spell of cold weather throughout the month it is important for consumers to be aware of the impact this may have on their bills.
As the temperature outside drops, the amount of energy needed to heat the home increases exponentially. Therefore, even if the thermostat in your house stays at the same temperature, you will be using and spending more to keep the home comfortably heated.
The cold weather, as well as the fact that typical gas charges are 18% higher than they were last winter, will naturally lead to higher energy bills for consumers. If the weather persists for as long as predicted, many could find themselves suffering financially. This is particular true for the elderly and vulnerable, both of which have already been hard-pressed by rising energy costs over the last 18 months.
To ensure that you aren’t paying too much for your energy, particularly during the cold month ahead, now is the perfect time to switch to a better deal through a price comparison service like ours at energyhelpline.
to compare suppliers and find the right choice for you17 January 2012: All major suppliers have now announced price cuts
All of the Big Six energy suppliers have now announced their price cuts for consumers.
Following on from EDF, British Gas, and SSE’s cuts which were all announced last week, the other Big Six energy suppliers have now followed suit, announcing similar price drops that will greatly benefit the price-conscious public.
npower announced last Friday a 5% reduction to their gas prices which will take effect from the 1st of February. e.on has also announced a price drop of 6% for electricity customers, coming into effect on February 27.
The last of the Big Six to reduce their tariffs, matching npower’s 5% price reduction for gas prices, is Scottish Power, who announced this week the discount which will apply from February 27.
These reductions follow on from earlier announcements by EDF of a 5% drop in gas prices, British Gas slashing 5% from their electricity charges, and SSE cutting 3.8% from their gas prices.
These recent price drops mean that the typical household energy bill for dual-fuel customers has now dropped 2-3% to £1,163 a year when averaged between the Big Six suppliers.
While these price cuts are good news for consumers, they are very small and come nowhere near wiping out the 21% rises of the last 18 months. If you want to get a good price cut typically you need to switch to a special deal through a price comparison service like ourselves at energyhelpline.
to compare suppliers and find the right choice for you3 January 2012: Ovo cuts its prices to be cheapest fixed tariff
Ovo has today dropped the price of its New Energy Fixed tariff to £1,060 p.a., making it the cheapest fixed tariff available and the 2nd cheapest overall. At only £30 a year more than the cheapest offering (first:utility iSave v9), it offers the peace of mind of no price rises for 12 months.
Customers already on New Energy Fixed won't see their rates fall immediately, but will be eligible for the lower rates when their 12 month fixed period expires.
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