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Energy price cuts are ‘too little, too late’
Tuesday 24 February, 2009
By becca.talbot@consumerchoices.co.uk
Energy giants are pushing price cuts, but the reductions don’t compensate for the gas and electricity hikes of 2008.
Millions of Brits will be billed under their old, more expensive pricing plans, paying out hundreds of pounds despite price cuts.
The energy giants have timed price drops to co-inside with spring and the return of warmer weather.
Four of Britain’s big six energy suppliers have cut gas and/or electricity prices, however the majority of reductions do not kick-in until March.
The new prices also fail to reverse the huge prices rises of 2008. The cuts, which average a saving of 4.5% or a £60* reduction in a medium dual fuel user’s annual energy bill, seem miserly compared to last year’s hikes.
Gas and electricity prices increased 51% and 28% respectively in 2008, according to energy watchdog Consumer Focus.
Chris Eagle, commercial manager at EnergyChoices.co.uk said: “While these new energy price cuts are a step in the right direction for consumers, they are not a big enough step, and don’t compensate for the mammoth price hikes we saw last summer. It seems the energy companies have done too little, too late.”
Price cuts of 2009
British Gas (www.britishgas.co.uk)
- Price cut: 10% gas, from 19 February
- Savings: Cutting the average annual gas fuel bill by 10% to £793
Scottish & Southern Energy (www.scottish-southern.com)
- Price cut: 4% gas and 9% electricity, from 30 March
- Savings: Reduction of £66 on the average dual fuel bill
EDF (www.edfenergy.com)
- Price cut: 8.8% electricity, from 31 March
- Savings: Reduction of £40 on the average dual fuel bill
- Price cut: 9% electricity, from 31 March
- Savings: Reduction of £44 on the average dual fuel bill
npower (www.npower.com) and Scottish Power (www.scottishpower.co.uk) have yet to announce any reductions.
Energy expert Chris Eagle advises: “To keep bills low this spring, make sure you’re on the cheapest tariff available by comparing energy prices. If you’re not already on a dual fuel tariff, consider switching to one as these are considerably cheaper than paying separately for your gas and electricity. Also, choose to pay by monthly direct debit, and sign up to an online tariff.”
* uSwitch, February 2009
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