First it was npower hiking up their prices as a New Year present to us all.
Now they have been joined by EDF Energy who have increased their electricity prices by 7.9% and gas prices by 12.9% and also by British Gas, who have raised both by gas and electricity by 15%.
Clearly a case of the energy empires striking back...
Now the prospect of having to pay more for your energy may leave you feeling cold, but don't despair as there are ways to fight the energy rip offs.
- Here in Britain, we face the steepest increases in energy bills in Europe this year, as continental suppliers squeeze customers for extra profits.
- We should brace ourselves for fuel price increases of 15% to 20% while consumers in Germany, Holland, France, Spain and Italy will see gas bills go up by about 5% t and electricity by 7%.
Mark Todd of comparison firm
Energyhelpline said:
"Britain has a deregulated market compared with most of the rest of Europe, which means we get bigger increases and bigger cuts. This gives European suppliers an ideal opportunity to skim off a bit more profit without customers noticing."
Of 8 European countries, including France, Germany and Spain, Britain saw the highest rate of increase for domestic gas between October 2005 and October 2006, when wholesale prices were rising.
Our bills went up an average 39%.
It also had the sharpest decreases a year later as the wholesale price fell and tariffs went down by 16%.
Is it any wonder we are constantly confused by fuel suppliers and told to switch suppliers to get the best deal?
Despite this, and if you exclude taxes, gas in Britain costs about 16% more than in October 2005 while electricity is up 15%. This suggests suppliers have used market volatility in Britain to boost profits.
According to Energyhelpline, evidence to support this theory is borne out by the fact that Spanish firm Iberdrola, (which powers 5 million UK homes through Scottish Power) is making 22% more profit for each UK customer than in its host country....
Energy firms claim bills are in general lower in Britain than on the Continent, but they use clever ploys to keep us paying more than we should.
So, with that in mind, here is how you can beat the tricks of the trade:
- Beware expensive fixed deals
As wholesale prices rise, energy firms are keen to push their "capped-price" deals, which promise to safeguard against bill hikes. However, these are set at a premium and not all are worth it.
A good current deal is Eon's price-pro-tection tariff, which is capped until October 2009 and costs an average of £904 (that's £164 or 22% more than the cheapest variable deal).
EDF's fixed tariff until August 2010 costs about £963 (£233 or 31% more than the best deal).
Analysts said prices are unlikely to go up this much, but there are no guarantees. Npower has recently launched a three-year fix that has a 7% premium on top of its new standard prices, bringing the average price to above £1,080.
However it is probably not worth protecting past 2009 as forward wholesale energy is trading about 5% lower in 2010.
Energy firms often overestimate your bills, and if you're on a direct debit tariff, you could be paying
£150 to £200 a year more than you need to.
About 30% of UK households' gas bills are based on outdated meter readings, according to comparison site Money Supermarket.
Check your own meter on at least a quarterly basis and log the details online. You can use your supplier's website even if you're not an online customer.
If you find you have been paying too much, demand a refund. If this doesn't resolve the problem, then complain to Energywatch, the energy watchdog.
- Beat the regional apartheid
Energy firms have traditionally charged more in some areas than others, but the differences were more marked for electricity than gas.
However, Npower and Scottish and Southern Energy (SSE) now charge up to £45 more for gas in areas like London and the East Midlands than for customers in the southwest or northwest.
The suppliers blame their distribution costs for the regional differences, but new research shows this argument is pants!
The most expensive region tends to be the north east of England where the incumbent supplier, Npower, charges £1,043 a year for standard dual-fuel customers; this is £100 more than in the southeast.
As much of Britain's energy arrives in the northern parts of the UK, distribution costs do not explain the difference.
The best way to beat the regional apartheid is to switch, but if you don't want the hassle of constantly moving, Scottish & Southern Energy tends to be consistently competitive in all regions.
So, energy prices may be on the rise for many of us, but there are still deals to be had.
If you decide to switch, you could save up to £325 (according to Uswitch)
Related stories:
The energy companies that are keeping our cash
Power firms overcharging on meters?