EDF Energy became the first major provider to respond to soaring wholesale prices when it hiked its standard gas tariff by 22% last Friday, and increased the cost of electricity by 17%. Other energy firms are expected to follow suit in the coming weeks, which is dire news for the millions of households already struggling to make ends meet.
Energy bills have already risen by an average of 14% this year. EDF customers on the provider's standard tariff are now paying £400 more a year for their gas and electricity than they were 12 months ago.
Analysts have warned that bills could soar by 40% before the end of the year, and in a recent survey carried out by moneysupermarket.com, 86% of respondents said they wouldn't be able to afford increases of this level.
Scott Byrom, utilities manager at moneysupermarket.com, said: "Bill payers should now brace themselves for a summer of price hikes. Naturally, some consumers will be extremely concerned about their ability to pay their energy bills and I would advise them to seek help and more information about social tariffs available to them. This really is a time when consumers need to be proactive and find the best deal possible."
Anyone on their provider's standard tariff could save money. The cheapest option is to go for an online deal and pay monthly by direct debit. Households on their provider's standard tariff are paying an average of £1,088.66 a year for gas and electricity, but they could cut this to £845.10 and save £263.56 if they switched to British Gas' Click Energy 5 products, which is the cheapest deal in most regions.
However, online tariffs are variable, so they do not offer protection from price increases. With price further price increases on the horizon, many people may prefer the option of a fixed rate deal. Scottish Power's Fixed Price 2009, is the cheapest deal and is fixed until August 31 2009. The annual cost for the average household is £1,021.26. You may need to act quickly however, if you want to take advantage of a fixed rate tariff as analysts expect many of these to be pulled in the coming weeks.
Average costs are only a guideline as the price you pay for gas and electricity depends on your usage and also where in the country you live. If you enter your details into our gas and electricity comparison tool, you will get an average picture of the price you'll be paying and which supplier has the cheapest deal for your circumstances.
Disclaimer: Please note that any rates or deals mentioned in this article were available at the time of writing.
Rate This Article
Click on a star to rate this article.
