35% rise in energy prices?

by Money Doctor Wednesday 30 April, 2008

There is a rumour going around that gas & electricity price hikes of are predicted for the summer or autumn.

Frankly, that's not great news especially as it wasn't very long ago that energy prices were hiked up!

Certain analysts have been predicting that domestic energy bills are set to rise between 10%, and a more likely, 25% over the next 12 months. Some even suggest the rises might be as high as 35% (but we really hope not!)

Such a move would add another £180-190 to your standard average household bill, pushing it towards the £1,200 a year mark for the first time.

Now, the gas and electricity supplier npower (remember their New Year price hike?) has just withdrawn its cheapest online dual fuel tariff. Analysts say that is further evidence that all of us across the UK can start planning for yet another round of energy price increases.

Npower's Sign Online 10 tariff had been the cheapest joint gas and electricity deal in the market, and was aimed at customers switching supplier. Npower's new version of the same online tariff is around £83 a year more expensive than the one it replaced!

And with crude oil prices hovering around $120 a barrel (which is almost double the price of a year ago) wholesale gas and electricity prices have also been pushed upwards.

An npower spokesman commented on their move: "We don't really talk about the online tariffs which can be withdrawn at any time. There are no plans to increase the price for any of our other tariffs at the moment."

If the energy prices do rise as much as rumours suggest, grab a price capped tariff now, as it should save you some money; though the cheapest capped tariffs cost 10% more than the current cheapest uncapped tariffs.

For those of you with finances on the edge you should think about capping your energy prices as it provides surety. Yes you could wait, but when price rises start, caps disappear quickly; so it's a balance.

To find the cheapest, select the capped options on comparison sites.

Our top pick for an energy comparison service is Energyhelpline.

Related stories:

How to fight the energy rip offs

Categories for this post: Money Saving

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Comments

Vic says:

Friday 02 May, 2008 / 19:05

i think that the way the greed has taken hold of our utility companies is very dangerous!! also the fact that most of them are now owned by foreign companies is an extreamly dangerous situation financialy for the bill payers in the u.k. also it seems that history is going to repeat itself by way of massive pay demands and literaly all out strikes just like the sixties and early seventies because with current wages being well below the e.us poverty line of £8 per hour no one is going to be able to pay the fuel bills just so that the foreign companies can keep there prices lower in there own comunities, also i have degenerative austio arthritis and havent been able to work for the last two years because of having had five operations so i went to the local council and they tell me that £98 per week incapacity benefit and my wifes wages of £13800 per year is enough to pay my mortgage of £742 per month then the utility bills and also my perscriptions that cost just over £40 per month, someone in the government needs to take a very big breath and start to take control of the way that things are going or as enoch powel once very bravley and famousley told the commons that there WILL BE BLOOD on the streets and the only people that can be blamed are the EXTREAMLY OVER PAID AND GREEDY BOSSES LIKE THE MAN IN CHARGE OF THE POST OFFICE (JUST A FACTUAL EXAMPLE )who go by the motto im ok jack and stuff the workforces who actualy make the money for them ill just keep taking my massive saleries and wittling down the small benefits like there pensions and ill take all the bonuses but not give anything back and retire early with pensions that equal telephone numbers whiole the government just sits on its hand giving massive tax breaks to the welthy and taking from mr joe average. thats why were in such a mess now, i say to those who can change things get off your butts and do somthing before we all sink !!!

Dereck says:

Saturday 03 May, 2008 / 00:05

Energy bills are certainly rising very fast, as is petrol, groceries and various Taxes.
I personally decided to hunt around to see where I can get Energy services cheaper. I was recommended to Utility Warehouse for cheaper bills etc etc. At first glance I thought yeah yeah, but it's not just Gas and Electric, they were able to offer me an overall package for all my bills from the one supplier. I now have my gas, electric, phone and broadband all on one bill, all much cheaper than before, especially seeing as we now get free Uk landline calls all day every day.
Needless to say I was offered an opportunity to also recommend the company to friends/family and get paid for it too!
I myself being a customer have no problem recommending them... Now it is proving to be a great way to earn extra money plus I get to save others their money!! Time to save on All bills?

Dereck says:

Saturday 03 May, 2008 / 00:05

Just incase... for those interested:
www.telecomplus.org.uk/uwdiscounts
- save at home (save on bills)
- business opportunity (to see about making extra money)

PJ says:

Tuesday 06 May, 2008 / 13:05

Doesn't the high energy bills due to rising crude gas/oil prices mean a fantastic opportunity for the alternative energy market?? Why are we not seeing great price offers from the 'so-called' alternative energy providers?? Does it really mean they are just a con i.e. not really alternative at all and can't compete with the gas/oil companies??

Dave says:

Friday 23 May, 2008 / 18:05

Get a serious saving by having replacing your boiler and having The Gas Team fitt it for less than £400.00 it will save you upto 40 percent of your gas central heating costs per year.

Boilers cost 400-800 so the whole job will pay for it' self in aproximatley three years. then just keep saving. saves the wonga and the planet..

Cheers Dave W

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