Penny pinching Brits currently feeling the pain of the credit crunch cut significantly cut costs by switching energy tariffs, according to the latest research.
As a result of another batch of price rises by all six major energy suppliers in the last couple of months, many households are facing a tough winter as a result of the often huge rises.
Having said that, while it is not a happy scenario, many people across Britain are not comparing the prices available on the market and are paying way over the odds for their electricity and gas.
The research carried out by moneysupermarket found that an online duel fuel deal by British Gas – called Click Energy 5 – is the best value tariff across all 14 major regions of the UK. People on this tariff in the east of England would be likely to pay 824 pounds a year, 67 per cent – or 553 pounds – less than the 1,377 pounds they would be paying if they stayed on their incumbent provider’s standard tariff, when paying by quarterly cheque or cash.
Customers in the north-east of England are likely to be worst affected by the latest round of price hikes, with the research showing that the average annual bill could be in excess of 1,396 pounds. This might mean that consumers are forced to consider other financial options – such as taking out personal loans – in order to pay energy bills. Online deals were found to be cheaper than other tariffs on the whole, with those paying electricity through meters the worst hit by the price rises.
Scott Byrom, utilities manager at moneysupermarket, said: “Households have been dealt with an almighty blow this summer with all six energy giants hiking their prices for the second time this year. It’s more important than ever for Brits not to be lulled into thinking they will automatically get the best deal with their current provider. I urge customers to proactively check the market to ensure they find the tariff that most suits their circumstances. Online products continue to lead the way in terms of value with monthly direct debit payments offering the highest level of customer discounts.”
However, Mr Byrom concluded that even looking online for the best deals will not shelter consumers from the majority of price hikes over the coming months.
of price rises meant that the cost of gas rose by an average of 29 per cent, with electricity bills going up by 14 per cent. Since the beginning of 2008, households have faced overall increases of 52 and 28 per cent respectively – with the energy companies blaming the high tariffs on the rising price of oil. A recent study from uSwitch found that the average energy bill could stand at 1,467 pounds by the end of 2008, if current rises are repeated.
Research from the firm also uncovered that 47 per cent of single income families state that paying energy bills is increasingly difficult, with 30 per cent of joint income households also struggling to pay the bills.
