Fuel poverty soars in the face of price hikes

Published:
29 January 2008
Topic:
News,Gas & Electricity

With energy prices on the rise and 'fuel poverty' now a reality, it's time to take control...

No sooner had industry regulator Ofgem assured Gordon Brown that there was no evidence that energy companies were colluding to increase their prices, than the Government took another hit with the news that one in six British households is living in 'fuel poverty'.

To be defined as living in fuel poverty a household must spend more than 10% of its income on utility bills. According to Energywatch, there are now about 4.4 million of these households across the UK.

The figures were released just a week after British Gas announced its 15% standard tariff price increases, following hot on the heels of similar price hikes from npower and EDF Energy. Further increases are expected in the coming weeks from Scottish Power and E.ON with Scottish and Southern Energy agreeing to freeze prices until April.

The Government had hoped to eradicate the problem of fuel poverty by 2010, but as the figures do not take into account the most recent price increases, the numbers are only likely to rise. This, despite the fact that the six largest energy suppliers in the UK made collective profits in excess of £2bn in six months alone last year.

While the figures will be embarrassing for the Government, they should act as a motivator for the British public.

Whereas energy suppliers are often slow to pass on the benefit of wholesale gas price cuts, they are only too quick to transfer increased costs on to the public. So why show your provider any loyalty if it is not willing to offer you the best available deals?

The time has come for consumers to fight back and take charge.

Search now for the cheapest energy deal in your area, using a gas and electricity comparison tool, such as ours. You could cut as much as £300 off your annual bill just by moving to a different tariff from the same energy supplier.

If you're not happy with the size of your energy bill then vote with your feet and put the power back in your hands.

DISCLAIMER: Please note that any rates or deals mentioned in this article applied at the time of writing and may no longer be available/applicable today.

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About This Author

Paul Schofield

Head of Utilities

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