Energy Price Hikes Give Brits the Chills

CHESTER, England, June 21, 2011 -

• Two Thirds of Brits Worried About How
  They Will Afford to Heat Their Homes
• Bill Payers can Save £382 a
  Year by Moving to Cheapest ‘Fixed’
  Deal

Two thirds of energy customers (62 per cent) are worried about
how they will afford their energy bills in the event of more price
hikes, according to href="www.moneysupermarket.com/">moneysupermarket.com.

Scottish Power recently announced increases to the cost of
standard gas and electricity of 19 per cent and 10 per cent
respectively, adding around £180 to customers’ annual bills. In
reaction to this price hike, a poll of 1157 moneysupermarket.com
users found a third (32 per cent) of energy customers are worried
they won’t be able to afford to heat their homes this winter if the
remaining five of the ‘Big Six’ energy giants are true to form and
also announce increases to their prices. A further third (30 per
cent) will have to cut back to afford their gas and electricity
bills.

Nearly one in five (18 per cent) said they will change to a
different tariff in order to save money on their bills. Indeed,
apathy will cost consumers dearly; bill payers languishing on their
supplier’s standard tariff could save up to £382 a year by swapping
to the current cheapest fixed deal - the Fix Saver v2 tariff from
EDF Energy, at £1,009 a
year^[2].

Scott Byrom, utilities manager at href="www.moneysupermarket.com/gas-and-electricity/">moneysupermarket.com
said: “With Scottish Power recently announcing a staggering
increase to the cost of standard gas and electricity, it’s only a
matter of time before the other energy providers raise the cost of
energy bills. As our research shows, many people will struggle to
afford to heat their homes if the energy companies continue to push
up the price of bills for cash strapped consumers. But, bill payers
can fight back against the heat of rising energy bills by showing
they are prepared to act and look for a better priced deal.

“The average saving by changing from a typical standard deal to
the best priced fixed product on the market is £382. It’s never too
late to make a saving and I urge anyone who is paying over the odds
for their gas and electricity to switch now. Shopping around
for the best value energy product is vital, anyone worried
about the cost of their bills needs to act quickly and move on to a
fixed tariff to safeguard against future price rises.

“It is unlikely the best priced fixed products will be
available for long so now really is the time to make the switch.
The more of us who move on to a better deal, the higher the need
for energy companies to compete for our business and hopefully this
will need for more competitive prices for everyone.”

Notes to Editors:

^[1]In a survey on our website
customers were asked the question: “What will another round of
energy price increases mean for you?” (1157 votes were
registered).

31% answered “I’m worried I won’t be able to afford to
heat my house this winter.”

30.4%answered “I will have to cut back to afford my gas
& electricity bills.”

17.9% answered “I’m going to switch to a different tariff
as I can save money.”

12.2% answered “I am aware of the energy I use and
believe I can save cash by being more energy efficient.”

7.6% answered “I don’t think it will make much
difference. My bills will rise but I can easily afford them.”

^[2]Standard, fixed and
online / best energy tariffs

NEW CONSUMPTION
LEVEL

British Gas: average standard tariff (£1,096.75),
average online/best tariff (£954.59 Web Saver 12), fixed tariff
(£1,217.41 Fixed Price June 12).

EDF Energy: average standard tariff (£1,118.28),
average online/best tariff (£940.49 Online S@ver 10), fixed tariff
(£1,009.05 Fix Saver v2).

E.ON: average standard tariff (£1,122.83), average
online/best tariff (£964.97 SaveOnline v7), fixed tariff (£1,126.05
Fixed Price v5).

npower: average standard tariff (£1,148.98),
average online/best tariff (£973.28 Sign Online 22), fixed tariff
(£1,013.80 Go Fix 6).

Scottish Power: average standard tariff
(£1,391.21), average online/best tariff (£932.10 Direct October
12), fixed tariff (£1,217.37 Platinum Fixed Energy 2014)

Scottish & Southern: average standard tariff
(£1,094.11), average online/best tariff (N/A), fixed tariff
(N/A)

Average Standard Tariff: £1,162.03

Average Online/Best Tariff: £953.09

Sourced by www.moneysupermarket.com 09.06.2011

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