Autumn has finally arrived here in the UK and as we drifted through August, we enjoyed our time with the kids, taking family vacations and just relaxing for the summer. However, we know that there no guarantees of how much sun we'll get over the next few weeks, we know we'll definitely get rain. The kids go back to school and all good things must come to an end.
Whilst we've been basking in the sun (when it's been around) and doing loads of fun stuff, our energy providers have been busy too. Busy planning their price increases for us during the summer months. I wonder if it's because we're busy doing other things, so we don't notice it by the time the autumn or winter arrives. They make an announcement during the summer months and have us forget about it when winter comes until we receive our bill. Lets just see how crafty they have been.
When one of the major 6 suppliers (British Gas, ScottishPower, SSE, E.ON. EDF and NPower) increase their prices, the other 5 tend to follow suit fairly quickly. Gas prices will, if they haven't done so already, increase on average by a whopping 18.6%. As for electricity costs, this again, if it hasn't gone up already, you can expect an increase on average to be around 12%. So whatever your annual gas or electricity bill, you should add an extra 18% on to it for gas and an extra 12% for electricity. Lets say you spend 400 a year on gas this means that with the new price increases your annual bill will now rise to around 473. For your electricity if you spend a yearly average of say 250 your new annual bill will be around 280. Of course these figures are an average and you should check with your supplier to see what your annual increase will be. These companies when asked why the huge increases say it's because the wholesale prices they have to pay have gone up, which in effect means we have to pick up the price increase. However, these companies still make millions of pounds in profit and in some cases just isn't true.
In February this year, the Guardian Newspaper reported that British Gas's profit went up by 24% compared with last year. That's a staggering 742m in profit alone. How can these companies justify charging us, the consumers so much money whilst still making such a hefty profit?
Here's some suggestions for trying to reduce the cost of your energy bills this winter:
- Check your fuel usage for the year and see just how much you are spending on gas and electricity. If you are unhappy with the price rises charged by your current supplier, armed with your total fuel usage for the year, find a cheaper supplier. Do remember though if you are tied into a contract, you may have to pay a cancellation fee to get out of it.
- When you receive estimated bills, check that they are not overcharging you. If they are, make sure you give them correct meter readings so they can adjust your bill accordingly. It's better to make sure you are paying the right amount, because if you have overpaid, it can take a while for these companies to give you refunds. It's also useful to know that sometimes they can be under charging you, which means they will issue you with a bigger bill than the one estimated. This is why it's always important to provide regular meter readings to your supplier to avoid getting a hefty bill that you weren't prepared for or paying too much and having to claim a refund.
