ENERGY BILLS SHOCK
Millions facing price hikes urged to switch suppliers and save cash
FAMILIES face paying an extra £400million on their energy bills when “price hike fortnight” begins tomorrow.
Four of the Big Six energy firms are ramping up prices which are set to hit 7.4 million households.
The hikes are due to come in over the next two weeks with British Gas, Scottish Power, EDF and Npower customers all affected.
Figures reveal that £393.8million will be paid in extra gas and power bills.
Experts last night urged families to switch suppliers or face being stung to the tune of hundreds of pounds. They also
warned that the most vulnerable customers, such as the elderly, are least likely to switch providers and the most likely to suffer.
Mark Todd, co-founder of energy switching site energyhelpline.com, said: “Energy prices are already high enough and now they’re set to get even more expensive.
“The UK energy market has little consumer protection. It’s a free market where suppliers can charge whatever they like. This means that if you don’t switch you’re likely to get ripped off.”
The first hike will hit British Gas customers tomorrow. The energy giant announced that its prices will change on May 29, with a 5.5 per cent price hike set to hit 4.1 million customers – costing on average £60 extra per year.
Britain’s biggest energy firm will be billing customers £246million more than last year.
Scottish Power announced it would change prices on June 1. Its 5.5 per cent price hike will hit a million customers, sending bills soaring by £63 per year.
Npower’s price rise will see a million households facing a 5.4 per cent increase from June 17, increasing bills by £64 per year.
Stealth
And EDF rises will see 1.2 million pay £16 more on average from June 5. SSE is the only one of the Big Six firms yet to reveal a price increase after news of its potential merger with Npower.
Eon, the German energy company, was accused of a stealth price increase in March when it quietly removed its dual-fuel discount, costing a quarter of its customers £50 per year.
The latest figures were collated by renewable energy firm Pure Planet. Co-founder Steven Day said: “We’re calling it price hike fortnight. It will cost consumers nearly £400million.
“They shouldn’t be distracted by the warm sun outside but make the quick switch to avoid big bills all year.”
Energy minister Claire Perry has been scathing in her criticism of hikes, urging customers to leave suppliers who continue to raise prices.
She said: “Consumers should vote with their feet. Switching suppliers will always help consumers get the best deal.”
Labour’s shadow Cabinet Office minister, Jon Trickett, called the rises “a slap in the face” for thousands of households in fuel poverty and those who “struggle with extortionate energy bills”.
Rising household bills are putting increasing pressure on family budgets as fuel and energy price hikes threaten more financial misery for millions.
And Office for National Statistics figures have shown food prices rose by three per cent in the past year.
Money saving expert Martin Lewis has warned that Big Six customers are “ripping themselves off by staying on a standard tariff”.
He said: “Someone on typical use could cut bills by around £300 a year with just five minutes’ work.
“There’s no point spitting and swearing about energy companies taking us for a ride if we’re getting on the bus. Do a comparison, find yourself a cheaper deal – that’s the best way to stick two fingers up to them.”
Mark Todd added: “People don’t need to take it lying down. It’s a no-brainer and there is no excuse not to switch.
“If you are on British Gas, and fear falling foul of the price hike, it is important that you switch as soon as possible.
“Switches can take a few weeks to process, meaning the sooner you switch the more you can avoid the price hikes and lock in a lower tariff.”
Alex Neill, Which? managing director of home products and services, warned: “Customers stuck on poor value standard tariffs should compare and switch now, as they could potentially save over £400 a year.”
Announcing the latest British Gas rises, Mark Hodges, chief executive of parent company Centrica Consumer, said the company was encouraging existing customers to choose one of its fixed-term deals.
“By the end of 2018 we hope over one million more customers will have chosen to move on to one of these alternative deals,” he added.
4.1m British Gas customers affected by the rises
£400m is the extra cost of the hikes to consumers