Signing up to an annual direct debit payment plan from your energy supplier is supposed to help prevent bill shock as your payments are spread equally throughout the year. But it might not work like that...
Two more energy giants announce price cuts
British Gas and Scottish & Southern Energy have joined EDF in cutting its energy prices.
Katie Collins - PA Wire
British Gas and Scottish & Southern Energy (SSE) have both announced small price cuts for their energy customers.
British Gas has reduced its standard electricity prices by 5% from today as the energy price war really starts to heat up.
It says that the cut will save its 5.3 million single rate electricity and dual fuel customers on a variable tariff £24 a year on average. It won't apply to people who are on Economy 7 or have already fixed their tariff.
British Gas claims that this cut now makes it the cheapest major electricity supplier in Britain.
Meanwhile, SSE says that it will reduce the typical gas bill of its customers by around £28 a year. If you're an M&S Energy customer, you'll also benefit from the price drop.
However, Consumer Focus says SSE is not applying the price cut to its standing charge - the daily charge customers have to pay to the supplier - so the real price cut is actually 3.8%.
Big drop unlikely
Back in August, British Gas raised its electricity prices by a whopping 16%, so it's debatable if any existing customers will see a noticeable drop in their bills.
Yesterday, EDF cut its gas prices by 5% in response to the falling wholesale price of gas. And it's more than likely that the rest of the 'Big Six' - E.ON, npower and Scottish Power - will now follow suit.
Smaller suppliers Ovo and Co-operative Energy have gone one step further by both reducing their dual fuel tariffs in recent weeks.
Switch or wait
Despite the forecasts of further price drops, it's still well worth comparing rates and seeing if you could save.
If you haven't switched tariffs in a while, chances are you are on the standard and most expensive rate. Changing onto a fixed or online tariff could cut your bills immediately. Yes, rates could continue to drop in the coming months. But if you do decide to stick on a pricey deal and wait around for them, you could see the excess you're paying now outweigh any future savings.
So with that in mind, here are the current cheapest energy tariffs:
| Tariff | Average cost* | Average saving** | Fixed or capped? |
|---|---|---|---|
| First:utility iSave v9 | £1,030 | £315 | No |
| Ovo New Energy Fixed | £1,061 | £284 | Fixed for 12 months |
| Npower Go Fix 10 | £1,078 | £267 | Fixed until 8 April 2013 |
| Scottish Power Online Energy Saver 17 | £1,085 | £260 | No |
| Scottish Power Online Fixed April 2013 | £1,095 | £250 | Fixed until April 2013 |
As you can see, there's still as much as £315 to be saved by switching onto the market-leading tariff.
The best deal currently around is the online iSave tariff from first:utility. However with the top fixed tariff just £31 pricier on average, it may be worth foregoing the cheapest deal for the peace of mind of a year-long, set-price rate.
* All calculations are for an average usage duel fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity.
** Against a typical bill of £1,345 per year (source: Ofgem).
related stories on msn
32Comments
12/01/2012 16:18
12/01/2012 15:36
Dont like it? Dont pay it. Put a jumper on and cut off your central heating. It doesnt seem all that cold these days anyway. Sitting there whining about it, but still forking over cash will only give them more of an excuse to rip you off. LET YOUR WALLET DO THE WHINING, THEN THEY WILL LISTEN.
12/01/2012 17:48
local authority are told by energy saving trust to use storage heaters hot when you don't need them and cold when when you do and to make things worse it is a part government and part industry is it the industry part that tells local government to use the most uneconomic heaters they say a 2000 watt heater is cheaper than a five hundred watt radiator i had a bathroom full of mould with down blowing heater now i have no mould by the way emails i sent to energy saving trust never gave there names i wonder why
12/01/2012 14:33
13/01/2012 11:17
Rainer Hammer. I agree with Lin Edwards, if you are paying £200 per month & using only limited amounts of fuel there is something drastically wrong, I pay £100 gas & £35 leccy which is over the top but I claimed back £450 g & £120 el last summer & I do this every year.
We are retired & the central heating is on most of the time, the wife has the washing machine going all the time, don't know what she finds to wash so often. So get those meters checked out & don't take NO for an answer, or better still change suppliers.
06/07/2012 23:41
20/01/2012 05:09
people who have money take from people who don't have money. but need basic things (commodities).. so the people who have money invest their money in things people who don't have money need....( gas, electricity , water, and fuel)... these companies are then floated on the stock market and sold, the investors (the people with money) demand a return (profit) on their stake in the company...
the investors get more greedy , not being satisfied with their return (profit)... they sit on a board and decide the prices so they can make more money ....
listen up here ...
WE OWNED THESE COMPANIES, THE PUBLIC, .....ONCE THATCHER GOT HER THIEVING TALONS ON THEM .. IT WAS THE END ...... WHY SHOULD WE BUY SOMETHING WE ALREADY OWNED ????
(WALL STREET.... GREED IS GOOD...)_
and now we are seeing the consequence for this......
16/01/2012 15:31
12/01/2012 16:56
Energy companies always profit from change. There are a lot of energy companies out there not just the big six, and I know of one company that is always competitive but still makes a profit. That isn't illegal, but ridiculously high profits and bonuses paid in a society when so many people are struggling to make ends meet is abhorrent.
Changing suppliers in small numbers will not affect the big companies unless other companies can grow to eat in to their market share. Don't just depend on the switching sites to get fair pricing either, they don't check all companies and often are misleading.
I think you all need to go buy solar panels and then the energy companies have to pay you.....and I know a company that pays you a higher tariff on what you produce too!
12/01/2012 17:56
@ Rainer Hamer How the heck are you spending £100 per month on gas and electricity, you dont have central heating on and only use your fire for 3 hours per day/night... I pay £62 for my gas and I have my central heating on at 20c for 2 hours in morning and 7 and half hours each night plus I cook by gas, more is used during the weekend days obviously and yet am £133 in CREDIT with my gas, I never leave anything on standby i.e tv,skybox, microwave, pc etc and I pay £47 a month for my leccy yet am still in credit by up to £83, my supplier is BG btw, you're obviously doing something majorly wrong or your meters are not set correctly, get your supplier to check your meters. One thing I have never done is fixed or capped my supplies, I nearly listened to Martin Lewis once (moneysavingexpert.com) but so glad I didn't, it doesn't pay to fix your prices.
12/01/2012 13:25
DO SOMETHING .. HELP US TO HELP YOU .... PROTEST.
http://www.38degrees.org.uk/page/m/74c0563a/2d446a34/5bce2895/4674de1f/2590377681/VEsH/
http://www.38degrees.org.uk/page/m/74c0563a/2d446a34/5bce2895/4674de1f/2590377681/VEsH/
12/01/2012 17:22
14/01/2012 13:27
I'm with BG and I got fed up with the DD every month and always being in credit with them, so I changed to a monthly pay for what you use method.They ask you to e'mail them a meter reading each month then they bill you and DD what you have used.I prefer this method,better the money in my bank than being in their bank.
Get a smart meter for electricity from your supplier and see where your money is going instantly;see your costs jump up when you use the electric kettle or tumbler drier..Make sure your place is insulated,OAP's can get free insulation,other people can get grants from your council.Check your tariff,make sure you are on the best deal for you.
12/01/2012 15:17
It's okay moaning and complaining on here but if you want to do something go and start a petition write and complain to them about it,we moan and groan but we accept it even when we are struggling to make ends meet.As for the comment about fat people you would save on Gas if you kept your mouth shut,the other comment about saving or not putting the heating on go for a walk,eating hot food etc,okay I will tell my grandchildren when they come to visit that Nana and Papa are going out in freezing cold and then we come in have hot food and put fleeces on oh and the baby can put a fleece on and have a hot bottle of milk pfft what a lot of rubbish you write.
12/01/2012 15:36
me and my kids freeze most days they may as well remove the gas meter as i dont dare switch it on i dont put the central heating on , but turn the gas fire on in the lounge for 1 hr before school and about 2hrs in the eve if you move to another room you can see your breath the kids thought we lived in a haunted house lol ! got so bad my son wont get out of bed till he puts his clothes on and they say your home is suposed to be warm and comfy to come home to , i bet you think my bill must be next to nothing , WRONG 100 .00 per month elec 100.00 month gas on a dd duel fuel discount lowest tariff , and i pay this all year round summer and winter to keep cost down or i never would be able to pay a quartly bill and when i see how much it is in full i cringe , so i really dont know how pensioners and others are managing so all this about reduction of prices its an online account and i read the meters so dont know what the service charges are for cos i do it for tl wont make a blind bit of difference to me ,
12/01/2012 15:06
OH dear the rising cost of car insurance is now blamed on people claiming for whiplash injuries ... I wonder who these people are ... I mean is it due to any particular section of the 'British' population ???
so I presume that they are going to plug this little 'loophole' and stop people involved in road accidents from claiming for their injuries???
so I presume that they are going to plug this little 'loophole' and stop people involved in road accidents from claiming for their injuries???
12/01/2012 18:36
Please spare a thought for those of us that live in rural areas where there is no gas, and we get super ripped off by the oil companies. If a camel sneezes in the Middle East the price of heating oil goes up, and up and up.
We also have to pay for the oil in a lump sum, which is about £300 - £350 or so for 500 ltrs, which lasts about 2 months using it frugally. In winter you buy 1000 ltrs, beginning of November the latest or you will be really stung if you want it in December, January, February,March, etc. That's if they can get to you before Christmas!
We use the immersion for hot water now, as it is considerably cheaper using electric rather than oil to heat the water. Imagine that! Electricity being a lot cheaper!
We really miss the ease of using gas, and the relative cheapness of it, comparing it to oil.
Remember that if you live in a flat or a terraced house, etc, it's a lot more insulated than a detached home, therefore cheaper to heat.
Put insulated foil behind the radiators, as it will reflect the heat back into the room, rather than the wall absorbing the heat. We've noticed quite a difference doing this. (Available from Screwfix,etc)
Put sludge remover into your central heating system to clear all the dirt and sludge, which makes the heating system extremely inefficient. Follow the instructions, and you will find radiators working again, etc. Drain after a week or two, then re-fill the system and add inhibitor.
Check also that the radiators are all balanced correctly, and have all been bled.
Doing all of these things will make your system run more efficiently, hence using less gas/oil, etc, meaning smaller bills. 
12/01/2012 13:55
hi, i read the comments. everyone seems angry at the high cost, even after this 5%cut. why get angry? get even instead.
i simply shut down my gas when they increase the tariff in 2008 and found that i can do without central heating. it is easy to keep warm with fleece clothing, and hot food and just take a walk. i live in london and in a flat so maybe my situation is not usual. but try it, u will be amaze at how easy it is to adapt to the cold rather than just automatically switch on the heating. this winter is very warm. if u have the heating on, u are not doing yourself a favour.
get even, and not use the gas at all. that will hit BG right in the pocket. if u dont use the gas , there is no profit for them.
i can use electric heaters to heat up individual rooms, but i found no need to do so.
my elect bill is £60 a quarter for a 2bedroom flat.
12/01/2012 14:02
@ Anthony Wong
Yes i'll try that. When the children complain about being freezing and developing pnuemonia, i'm simply going to put a 'fleece' on them and tell them to go for a walk....
Then i'm going to cut a hole in my living room floor and fish for food like an eskimo. I wonder why nobody ever thought of just 'adapting to the cold' before. Genius.
Yes i'll try that. When the children complain about being freezing and developing pnuemonia, i'm simply going to put a 'fleece' on them and tell them to go for a walk....
Then i'm going to cut a hole in my living room floor and fish for food like an eskimo. I wonder why nobody ever thought of just 'adapting to the cold' before. Genius.
12/01/2012 13:37
Report
Are you sure you want to delete this comment?
latest money videos
more on msn money
The iconic Cotchford Farm in East Sussex goes up for sale for £2 million.
We look at which option will bag you a nicer home in a better neighbourhood.
Whether you have credit card debts or an overdraft or a stack of store credit, you can get back in the black for very little cost.
Because the sun has to shine eventually...
Nearly half of UK households say that they would struggle to cope if their monthly outgoings rose by £99. We look at how you can create some financial 'breathing space' to help you out if you lose your job or become ill.
Avoid these mistakes if you want to lead a richer life!
Save regularly to nab a leading easy access ISA rate from Newcastle Building Society and the chance to earn up to £1,000 cashback.
Barclaycard is now offering a record 27 interest-free months to pay off your debts.
The taxman says three and a half million people are due a refund, but two million will have to fork out for underpaid tax.
Fed up with low savings rates and high borrowing rates? As Dave Fishwick and his Bank of Dave has demonstrated, there are other options out there.
If you want to find a unique property bargain, there is plenty of help available online - you just need to know where to look.
