Energy News

Gas prices to rise - get a cheap fixed deal now

Wednesday 11 May, 2011

By Martin Fagan - martin@consumerchoices.co.uk

British Gas has warned that rising wholesale gas prices will bump up consumers’ energy bills this winter, after a string of suppliers unveil cheap fixed-rate deals.

Hard-pressed Brits face another hike in energy bills as the rising price of wholesale gas increases suppliers' - though this rise will not be reflected in household bills until later in the year, warns British Gas.

Following natural disasters in Japan and the unrest in Africa and the Middle East, worldwide energy markets have experienced turbulence, and British Gas’ parent company, Centrica, said the wholesale price of gas for delivery this coming winter is around 25% higher than last year.

The impending rise in wholesale prices is not being reflected in customers’ bills yet, so Centrica is warning consumers to expect higher energy bills this winter.

A spokesman for Centrica said the company had yet to take a decision about whether British Gas will increase its tariffs.

For anyone worried about their bills, a number of energy providers have launched new fixed-rate deals, which will protect the price you pay for your energy until a certain period.

Scottish Power has launched the Platinum Fixed January 2014 v3 tariff, which fixes prices until January 2014 and comes with Scottish Power's HomeComfort boiler care. The new tariff is only available as a dual fuel deal and to customers who agree to pay by monthly direct debit.

And rival provider EDF is offering, what it claims to be, the cheapest dual fuel fixed price product on the market. Fixed S@ver Version 2 guarantees customers fixed prices until 30 September 2012.

EDF said a typical dual fuel customer on Fixed S@ver Version 2 paying by direct debit would pay £1,009 a year for their energy consumption, based on energy regulator Ofgem’s typical annual household consumption of 3,300 kWh of electricity and 16,500 kWh of gas.