UK households are really set to feel the heat as gas and electricity prices are expected to rise over the next few months. SSE was the first major energy supplier to announce price hikes coming into effect next month.
As the rest of the ‘big six’ are expected to follow suit, many households should consider switching suppliers in order to secure the best possible tariff.
Mark Todd, director of independent price comparison service Energyhelpline.com, commented on the current situation:
“Now really is the last-chance saloon for customers to win the battle of the bills before more suppliers pull the better-deal tariffs and prepare for January price hikes.
“We predict that by New Year all the major suppliers will follow SSE’s lead and announce price increases of at least nine per cent. If consumers want to start 2012 with a healthy bank balance now is the time to switch.”
Domestic gas and electricity prices have soared over the last few years, which has tipped thousands of households into fuel poverty. In addition to this, major energy suppliers are reaping the benefits with huge profits.
As the summer winds down and an autumn chill sweeps across the country, a number of households will be turning their heating on for the first time in months. However, figures show that around six million households across England plan on cutting back their energy use this winter in a bid to save cash.
The leading six energy suppliers dominate 95% of the market and are locked in fierce competition. Energy giant E.ON reported profits of 24% for the first six months of 2012.
This came after British Gas announced that their profits for the first half of the year were also up 23%. As the price of domestic gas reflects the wholesale costs, which has dropped, some of the energy firms have been called into question over their profits.
Not only are major energy suppliers benefitting from charging higher rates whilst enjoying lower wholesale costs; but they can also count on consumer apathy to bring in the cash.
Worryingly, 58% of Asda customers have never switched energy suppliers because they don’t think it will save them money. Some 79% of those polled said they were not considering switching suppliers, yet it could shave hundreds of pounds off their annual fuel bill.
The Asda Money Energy Compare and Save service makes it easy for consumers to compare different tariffs available across different suppliers. This allows you to get the best possible deal and enjoy cheaper energy bills this winter.Back to top