Snap up the hottest energy deals
GAS and electricity bills look set to go through the roof again, just in time for the coldest part of the year.
UK wholesale gas prices rose 16 per cent in October while electricity prices rose 19 per cent, the fastest monthly leap for years.
Over the last 12 months, wholesale gas and electricity prices have shot up by 40 per cent and 50 per cent respectively.
Energy firms are passing on the extra cost to households, with five of Britain’s Big Six energy firms – EDF, E.ON, Npower, ScottishPower and SSE – axing their cheapest deals since September, according to comparison site uSwitch.com.
Poverty charity Turn2us said yesterday that almost half the people who approach it for help had cut back on heating their home because of the cost, with the elderly and disabled particularly vulnerable. This is a great worry with the UK on course for the harshest winter in more than five years.
BLOOMIN’ FREEZING
Last week British Gas, E.ON, SSE and Good Energy announced they will freeze standard residential energy tariffs until the spring but Peter Earl, head of energy at CompareTheMarket.com, says: “This is not the early Christmas present it might seem to be.”
Rather than a reward for loyalty, this is a move to deter millions of customers from shopping around for a cheaper deal, he claims: “Most people simply shouldn’t be on standard variable tariffs at all.”
Earl says variable rates cost far more than the best fixed tariff deals and people should ignore the freeze and shop around for a cheaper option. “Remember too that this freeze only lasts until March – so expect price hikes in the spring.”
Ben Wilson, energy expert at GoCompare.com, says energy firms are keen to offer cheaper fixed tariffs because it allows them to lock in households for a set period: “They are happy to earn less per customer, because they entice more and keep them for longer.”
POWER THROUGH
GoCompare’s figures show that nine of the top 10 cheapest dual-fuel energy tariffs are fixed, with costs starting from £863 a year for the average customer.
That price is available on PFP Energy’s Together tariff, fixed until December 2017, while the next best is So Energy’s So Gecko tariff at £869, then Avro Energy’s Simple and Chill at £871.
Smaller utility suppliers dominate the top 10, with Extra Energy, iSupplyEnergy, Economy Energy and Bristol Energy also featuring.
The cheapest variable tariff is Robin Hood Energy’s Evergreen, which charges £903 a year, followed by Bulb’s Vari-Fair at £909 and Flow Energy’s variable tariff at £948.
The cheapest deal offered by a big six supplier is EDF Energy’s fixed Blue+Price Protection, fixed until December 2017, which charges £933, followed by ScottishPower’s Online Fixed Saver at £952. These are all far cheaper than the average UK household energy bill, which is £1,345, according to the regulator Ofgem.
KNOCKED FOR SIX
Claire Osborne, energy expert at uSwitch, calculates that consumers on standard deals could be overpaying for their energy by £200 a year: “They should switch to a competitive fixed rate tariff, which also gives protection for longer against any future price rises.”
Some will be reluctant to switch to unknown energy suppliers after the collapse of GB Energy, which had 160,000 customers, compared to six million at British Gas.
However, Osborne says Ofgem has moved fast to protect households by quickly appointing a new supplier. “Co-operative Energy will honour all outstanding credit balances and keep them on the same prices.”
She adds that GB Energy’s standard variable plan is now £198 a year more expensive than the cheapest plan on the market: “So customers should shop around to see if they can find a better deal.”
If you or a family member is on a low income, contact your energy supplier as it may offer support for certain vulnerable customers.
Otherwise shopping around for a cheaper tariff can help you beat this year’s winter chills.