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...
Warning over energy price hikes
Further energy price hikes will throw households' already stretched budgets into "turmoil", consumer groups warned.
People have been urged to take action to keep their bills down
Further energy price hikes will throw households' already stretched budgets into "turmoil", consumer groups warned.
They have urged people to take action to keep their bills down, although some of the cheapest deals on the market have already disappeared.
Many households have already been squeezed by increased mortgage costs after a string of lenders increased their standard variable rates (SVRs) in recent months, affecting more than a million home owners.
Santander's hike to its SVR last week meant a few hundred thousand of its customers saw an average increase of £26 a month for a £100,000 mortgage. Food prices have also been predicted to rise following poor harvests due to the wet British weather as well as the worst drought in 50 years in the US and a heatwave in Russia.
Recent research from consumer website MoneySupermarket found that a third of adults believe a £50 rise in their monthly outgoings would push them to financial breaking point.
Citizens Advice chief executive Gillian Guy said: "Many British Gas customers will find the possibility of a price rise really frightening. Bill increases throw already stretched budgets into turmoil - with people forced to find more ways to scrimp and save. But there are things that people can do to save money on their fuel bills."
Citizens Advice is running a Big Energy Saving Week from October 22 to 27, when it will help consumers find ways to cut their fuel bills.
Consumer experts have said people currently on a standard tariff should be looking into a cheap fixed tariff, which could save them more than £200 a year. Some fixed-rate tariffs also guarantee no price hikes for two winters.
Scott Byrom, energy expert at MoneySupermarket, said that market-leading fixed-rate deals from Scottish Power and EDF Energy were removed around the time that SSE announced its price hikes in August, as people moved to snap them up. But he said that some smaller brands such as Ovo Energy are still offering some competitive deals.
Mr Byrom suggested customers who hunt for better deals may find that some energy companies introduce a few more competitive products to try and tempt customers away from British Gas, but they will need to be proactive and keep a close eye on the market. He said: "Overall, the message is to do something. Get off a standard tariff."
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2Comments
12/10/2012 17:02
How can this so called government be allowed to get away with restraints on wage and pension rises and allow these so called fuel companies do as they please in relation to price rises. At the present there are too many Cowboy's and not enough Indian's, A good solid days manual work would sort them out, if so, would end up with a pair of shoes filled with brown stuff and need a long break to get over it.(Could this be called meltdown).of what they have done for this country.Can any MP,S remember when Dungeness Nuclear Powerstation was built, it was said that it would produce more electricity than the National Grid would need at certain times, resulting excess electricity being sold to France Via the Converter Station at Sellindge nr Ashford Kent, then if and when we needed electricity we could buy it back at treble the price we sold it for.North Sea Gas, Dartford Tunnel and QE 2 Bridge Etc: Are money makers at the price of the British Public. Lets show this Government what we think of any party with our fingers when the time comes.
12/10/2012 22:00
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