As of the 5th of January, Britain’s fourth largest energy supplier, npower, increased its prices by an average of 17.2% on gas and 12.7% on electricity.
The hike, which amounts to around £92 extra on the average gas bill and £48 extra on the average electricity bill, will affect nearly 4.9million customers and instantly wipes out the price cuts it made last year.
If you’re not an npower customer there’s no room for complacency either. Industry insiders are predicting that British Gas will increase its standard tariffs anytime now (in fact, don’t be surprised if the increase is implemented by the time this alert reaches you) and when British Gas hikes its prices the rest are sure to follow.
Already people are talking about £1,000 annual gas and electricity bills – but I don’t believe that needs to be the case. I want to help you rein in your gas and electricity bills.
So what action can you take?
Well, firstly find out your usage. If you don’t know what your typical energy usage is then you won’t be in a position to choose the cheapest tariff for you. Look at some old bills or call your energy provider to get a clear idea.
This is a crucial step as whereas British Gas Click Energy 4 is currently the cheapest product on the market for people in an ‘average’ house, for those in smaller homes the likes of Scottish Power, E.ON and Atlantic lead the way depending on where you live.
Once you can clearly estimate your typical usage, use our gas and electricity comparison tool to move to a cheaper deal. By changing both your gas and electricity products through our finder, you’ll earn £30 cashback – the highest cashback offer of its type online.
There are large savings to be made by moving to an online tariff. A medium user in Newcastle, for example, will save more than £200 if they move from British Gas's standard dual fuel tariff to Click Energy 4.
Paying by monthly direct debit instead of quarterly will also help you save cash.
Clearly the providers aren’t going to do us any favours in the weeks and months to come. So the emphasis is on you, the consumer, to act now and move to a cheaper tariff to ensure you don’t needlessly throw your money away.
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.