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British Gas 7% price rise. What should I do?

What should I do about the 7% British Gas price hike?

Dear Chris, I’ve just seen that British Gas is putting up prices by 7% and I’m one of their customers. I’ve already been worrying about putting the heating on this year and now I’m terrified.

My direct debits are high every month and with Christmas coming this is the last thing I need. What should I do?

Christine Dougal, Rochdale, via comments, Tuesday 8 November, 2010

Our energy expert says...

British Gas has blamed rising wholesale energy prices – the price they pay to buy gas – for their energy price increase. But, like many, you’re worried about your bills going up as you use more heating to combat the cold this winter.

Here’s my advice for the steps you could take.

  1. Check the name of your tariff. If you’re on a fixed-rate British Gas tariff, your energy prices are protected and that covers the 1.6 million British Gas customers. But, unfortunately British Gas has 8 million customers who will be affected by the price hike.
  2. Get out your bills and tot-up how much energy (kWh) you’ve used in the last year or during last winter. If you find this too difficult or you can’t find your bills, don’t worry – while it helps it’s not strictly necessary. Some good news is that all energy customers are set to get an annual energy statement from this December, which will clearly tell you how much energy you use.
  3. Go online and compare energy prices, you’ll find the best deal for you and if you don’t have the information on your usage – you can just enter the number of bedrooms and occupants in your household.
  4. Pick the best price deal for you and switch energy supplier – you don’t need to do anything else – your new supplier will communicate with British Gas for you.

Energy-efficiency steps to cut your gas and electricity bills

Now, you’ve got the best deal, you can make further savings by improving the energy efficiency of your home.

Heating and insulation grants may be available from your local authority, your energy provider may also be able to help with insulation and an energy meter – which will help you discover where you’re wasting energy.

You could also visit your local DIY store for simple fixes to cut down on draughts which won’t cost the earth.

For a full guide to energy-efficiency measures – download our Complete Guide to Energy Efficiency.

I hope this helps you make the switch to a cheaper energy deal, Christine. It really is very easy and could save you a fair amount this winter. People who switched energy deals in October saved on average £265 on their annual bills.

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