There is no getting around the fact that it’s been a bad week for those of us with gas and electricity.
The thought of facing potential 35%-40% increases in our energy bills this winter has left us either feeling hot under the collar or quite simply, shocked!
Recently EDF hiked their gas prices by 22% but as you are all too painfully aware, that was nothing compared to British Gas casually announcing that it’s bills are rising by up to 43%; the biggest single rise ever seen!
If you feel like setting light to your energy provider’s premises, then it’s clearly time to switch!
However if you do want to switch, then there is some good news and some bad news!
Most of the attractive capped deals, (which promise no price increases until a fixed date) have been withdrawn in the last few weeks. The most attractive deal, from Scottish Power was pulled just hours before the British Gas announcement.
Hmm, funny that?!
Energy companies ‘conspiring’ as EDF hikes prices up
The good news is that Eon is offering a competitively priced capped deal, called Eon Price Protection October 2009.
The best way to get this tariff is by using one of the energy-switching sites, but you need to get your skates on as these deals do not last long!
- British Gas rises even greater
Sadly, the lack of capped rate deals is not the only bad news!
It has been revealed that many of you who are British Gas customers will be paying a lot more than the 35% increase you were quoted last week.
At least 1.6 million of you (who only take gas from the firm and pay by monthly direct debit), are now paying up to 43% more for your gas than you were at the start of the week.
This is because you are likely to be the company's oldest customers (and those who have never switched supplier) and you are now paying the highest gas prices in the UK.
If you are a dual fuel customer with with British Gas then you were paying £913 for
your joint gas and electricity bills at the start of 2008. This has now jumped £404 to £1,317; this a kick in the teeth when most of you are struggling to pay higher petrol and food bills.
The company said it will protect its most vulnerable 340,000 customers, most of whom live on benefits, from the increase. The 2.1 million customers who signed up for capped products also escape the increase; for now.
Something that could be encouraging is that on the same day they announced their gas price rise British Gas offered customers the chance to fix bills at the new level until 2011; suggesting it thinks future prices may not go up as much as first thought.
Mark Todd, spokesman for the comparison website Energyhelpline.com is expecting the four other big energy providers to follow the lead of British Gas and EDF and raise their prices by 20%-30%. He said:
"We expect more rises within days. However, there is no reason for consumers to take this lying down. By switching to Eon's capped tariff today, an average household can fix their energy bill at today's prices until October 2009. This costs around £1,100 a year compared with the £1,400 or so now being paid by the average British Gas customer.
We predict this could save a typical home £300 over the next year, but we expect this to disappear within days. This really is the last chance for households to avoid the energy price rises.”
Joe Malinowski, owner of rival switching site TheEnergyshop.com, agrees the Eon deal is the one to go for if you're looking for certainty. However, he has an alternative strategy saying:
"Now most of the longest capped deals have gone, there's a case for staying
on the lowest internet-only deals and see how things work out. The
cheapest internet-only deal which requires customers to sign up and manage
their accounts online is, ironically, British Gas's Click 5 tariff."
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