Guide to the Latest Deals on Gas and Electricity
Updated monthly: Last update July 28, 2008
The gas and electricity market is constantly evolving and that is why we have created this monthly ‘what’s new’ feature to keep you abreast of the latest developments.
If you’re in the market for a new gas and electricity tariff and want to know about the latest deals then check out our price indicator which is updated as soon as a new
product is released. Alternatively, head over to our gas and electricity comparison tool.
and compare tariffs in your area based on your consumption levels.
Here are this month’s top stories:
Newsflash: Energy bosses warn of potential 40% price increases
Wholesale gas prices have hit record highs, breaching the £1 per therm barrier for the
first time ever. This has led to warnings from energy bosses that prices will increase
‘significantly’ before the end of the year.
John Hall, an advisor to some of Britain’s energy companies, has estimated that it may be
necessary to increase prices by around 30-40% if energy companies are to maintain their profits.
Further price increases will be a blow to British households as gas and electricity prices
have already risen by around 15% this year. The average household currently pays £1049.47 per
year for gas and electricity compared to £850.08 only 12 months ago.
The majority of UK households are still on standard tariffs and are being urged to switch to a
cheaper tariff. Online tariffs offer the best value for money, and at the time of writing, British Gas
had the cheapest deal in most circumstances. Its Click Energy 5 tariff will cost the average
household £845.10 a year. Moneysupermarket.com’s comparison tool.
enables you to identify the cheapest tariff for your circumstances, based on your consumption and where you live.
Some experts are also suggesting that it might be the right time to move to a fixed energy tariff
as this will protect you from further price increases. The cheapest fixed price deal is currently
Scottish Power's Fixed Price Energy 2009 with an average annual price of £1021.26. However, a £50
cancellation fee is levied if you switch to a different product or provider within the fixed term.
With fixed energy deals being so much more expensive than the cheapest online products, it is not
clear cut as to whether consumers will be better off opting for the security of a fixed tariff.
If you are worried that gas and electricity prices may continue rising, fixing now will at least
give you peace of mind.
For more on this story check out Paul Schofield’s article ‘prepare for higher energy prices’
Newsflash: Prepayment customers lose out on £769.6 million
According to research by moneysupermarket.com, prepayment customers are paying
significantly over the odds for their gas and electricity.
A prepayment customer on a standard tariff pays £1,048 a year for their gas and electricity – that’s
£153 more expensive than the ‘best’ average tariff available from the energy giants. For example,
a British Gas prepayment customer would pay an average of £1,143.59 a year compared to £845.10
on the company’s market-leading online tariff, Click Energy 5. That’s a difference of £248.59.
British Gas has recently launched an online tariff for prepayment customers – Click Pay As You Go
Energy – but at £1,073 it’s still significantly more expensive than the Click Energy 5 product.
With five million customers on prepayment meters across the energy providers, they are collectively
missing out on £769.6 million a year in savings.
Often it is the poorest households that have pre-payment meters and a rising number are struggling
to cope with escalating bills - 14% of gas customers and 9% of electricity customers have gone without
heating and power because they cannot afford the payments.
Moneysupermarket.com is calling on the Government to put forward proposals to treat prepayment customers
fairly. We believe that energy providers should also reduce prices for prepayment customers, remove back
charges and shield them from further price hikes.
However, for now, the advice for prepayment customers is speak to your energy supplier as soon as possible.
Ask to be moved onto a social tariff or credit meter and enquire as to whether or not there are any other
discounts you may be eligible for.
Stay tuned to this ‘what’s new’ feature each month for more on the gas and electricity market and don’t forget to compare prices in your area using the
gas and electricity comparison tool.
Compare Gas and Electricity now with our free comparison service
