Energy News

Brits should brace themselves for a huge energy bill

Thursday 5 January, 2012

By Martin Fagan

Households that used less energy because of the mild winter will see those savings wiped out by rising energy prices, says new research.

Despite the recent spate of mild weather, householders are unprepared for the size of the energy bill they will receive in the coming months, according to new research.

Even though the relatively warm December weather meant fewer households cranked up their central heating, the price increases imposed by the “big six” energy suppliers last summer will wipe out the savings made from low usage.

Following recent price rises, the cost of gas has increased by an average of 17.4% and electricity by 10.8%.

The research estimates customers on standard tariffs could face a bill of £514 for the winter quarter, which they will probably receive at the same time as the credit card statement loaded with their Christmas spending.

Brit households use around 40% of their annual energy consumption during the winter months and people on fixed energy deals need to beware that their deals could be coming to an end, according to the research, which was conducted by MoneySupermarket.com.

“The start of a new year is an expensive time as consumers deal with a festive financial hangover - a huge energy bill will come as an additional nasty shock,” said Scott Byrom, utilities manager at the finance price comparison website.

“Languishing on fixed deals could spell bad news for Brits when they expire. In the worst case scenario, providers could automatically switch customers across to a more expensive standard tariff. Shopping around and swapping to the current market leading deal could mean an annual saving of £360.”

Despite the recent mild weather causing a fall in the wholesale cost of gas across Europe, Britain’s “big six” energy firms - British Gas, SSE (formally Scottish & Southern), E. ON, Npower, EDF and Scottish Power - have yet to pass these price falls onto consumers’ bills.

MoneySupermarket.com says that, despite the fall in the price of wholesale gas, the market indicates Brits could see further price increases in April or May 2012.