Energy Prices Increasing. Time To Switch?

It won’t come as big news to you that the energy prices in Britain will increase from September 14. According to fuel poverty charity National Energy Action, almost 5.4 million households in the UK are already living in fuel poverty. The recent move of the energy companies will possibly add another 1.2 million households to the list. For the reference, a household is classified as living in fuel poverty if they are spending more than 10% of household’s income on fuel. This is, however, only the official number. Many people don’t admit having problems, so the number of struggling households can be, in fact, higher.

But let’s not concentrate on negativity. Before blaming the government, let’s consider the massive national debt that we have to sort out together and let’s remember that fuel prices are going up in many places around the world.

There’s two important things we can do now:

• review the way we use and save energy
• switch to another gas/electricity provider because they’re not all the same.

Thomas Lyon, energy expert at uSwitch.com explains:

“Five of Britain’s big six energy companies have now announced a second price increase in under a year – only EDF Energy is still to say whether or not it’ll be joining this trend.

“The key thing is that if you have never switched before and are sitting on your existing supplier’s old-fashioned and uncompetitive standard plan then you will be paying substantially over the odds for your energy. In this instance it’s definitely worth taking action now as you will immediately start to save money on your energy bills.

“Recent price hikes have seen a flood of people moving onto fixed price energy plans to protect themselves. There are still some very competitive fixed price plans available, although these are gradually being pulled off the market and being replaced with higher cost deals. Therefore, those who want the security of a fixed price plan should move quickly. These plans carry a slight premium but are a useful way of helping households on a tight budget. However, they also have exit penalties so consumers should consider the options carefully before signing on the dotted line. It’s also important to understand that if prices come down again in the future you are unlikely to benefit if you are on a fixed price plan.

“Online energy plans are consistently the most competitive in the market, so these are another good alternative for those who are willing to take their chances with price rises. At the moment these are coming in at around £200 a year less than the average standard plan so represent a good saving for households.

“Other things for households to consider to cut the price of their energy:

• Move to dual fuel – this means taking both gas and electricity from one supplier and will usually earn you a discount
• Pay by direct debit – again, suppliers give valuable discounts for paying in this way, plus it allows you to spread the cost of your energy evenly over the year despite your consumption increasing dramatically in the winter and dropping off a ledge in the summer

“Finally, as well as making sure they are paying the lowest possible price for their energy consumers should also cut down on the amount of energy they use. This two-pronged approach is our best defence against higher energy prices.”