The dirtiest energy provider tricks

As British Gas hikes prices by almost 20%, we take a look at how to fight back against the dirtiest tricks pulled by energy providers...

You just became £190 a year worse off. If you get your energy from British Gas, that is.

Yes, the utilities giant has become the second of the ‘big six energy companies’ to ramp up prices in the last month. The rises will be an unwelcome surprise for swathes of struggling households already suffering under soaring inflation and government tax hikes.

Let’s take a closer look at the rise...

The only way is up

British Gas is putting up gas prices by 18% and electricity prices by 16% from 18 August 2011. The change will hit nine million households and is expected to push up the bills of the average duel fuel customer by £190 per year.

The provider last upped its rates back in December 2010 by 6.9% for gas and 6.7% for electricity. In total, this means that British Gas customers will have seen their bills hiked by 25% or £258 in the last year alone.

British Gas has blamed the rises on the increasing wholesale cost of gas, which has climbed by 30% since last winter. In turn, this increased cost has been attributed to the stuttering fuel supply in the Middle East, brought about by the continuing unrest in the region, as well as a general global increase in demand.

The price hikes come less than a month after ScottishPower upped their gas rates by 19% and their electricity rates by 10%.

So what can you do to combat rising energy costs?

Fight back

Ditch and switch: Energy suppliers must now give 30 days’ notice to customers of any price changes. From here you legally have 20 days in which to reject the alterations and then a further 15 in which to make arrangements to switch to a new, cheaper energy provider.

Changing suppliers should take between six and eight weeks to complete – but during this time your energy provider must keep you on your previous, cheaper rate. According to energyhelpline.com EDF’s Fixed S@ver v2 is currently the cheapest fixed tariff around, closely followed by the Npower Go Fix 6 tariff and Ovo’s New Energy Fixed. However these are all only fixed for one year, after which the price may rise.

And remember, if you do switch suppliers, ensure you pay your bills by direct debit and manage your account online, as providers will often levy a surcharge if you do not.

Use less and go green: An obvious one really – if you try to be greener with your energy and use less, your bills will certainly start to drop. Simple ways to slash your usage include turning down the temperature of your washing machine and thermostat, defrosting your freezer, bleeding your radiators regularly to improve their efficiency and turning off any unused electrical appliances at the plug.

Blocking off any draughts and escaping heat using PVC seals, draught excluders as well as roof and cavity wall insulation could also knock several pounds of your heating bills. You can even occasionally get hold of grants to help towards insulation costs, head over to the Energy Saving Trust website to find out if you’re eligible.

Check your boiler: If you have an old boiler, switching to a newer, more efficient model could slash your energy bills.

So now you know how to fight back again price hikes, take a look at these other energy provider tricks and make sure that you avoid them...

Other dirty tricks

Bogus free gifts: Energy suppliers will often throw in free gifts such as electricity monitors or gift vouchers to sweeten up some of their tariffs. The catch is that these tariffs usually charge the priciest rates. So the extra cash you’ll ultimately end up shelling out on these expensive tariffs will more than outweigh the value of the free gift.

If you really feel you can’t do without an energy company freebie, a better idea is to simply opt for the cheapest tariff around and buy the free gift from the shops!

Standard tariffs: When a fixed-period tariff comes to an end, energy companies will usually switch you straight back onto their standard rate. This is almost always far pricier than the fixed deals. They do have to inform you of any changes, but the warning is often buried under a raft of small print – so keep an eye open for it!

Similarly, if you move into a new home chances are the existing energy supply will be set to the provider’s standard tariff, and hence overly pricey. So if you’ve recently changed homes, make sure you check what tariff you’re on, and if it’s the standard rate – switch now!

Shady sales techniques: In addition to the British Gas price hikes; this week has also seen Scottish and Southern Energy (SSE) axe 900 jobs by abandoning all of its doorstep sales activities. Back in May the provider became the first member of the ‘big six’ to ever be prosecuted over dishonest sales techniques. The spotlight has also been turned on Npower and Homeserve over the ‘persistent misuse’ of automated telephone dialling equipment to make cold calls to potential customers.

Yes, door-stepping and cold-calling may not exactly be dirty tricks, but they’re certainly annoying habits peddled by energy companies and can be costly if you buy into their sales rhetoric. So if you are approached by a slick energy salesman who tries to tell you how much you could save by switching to them, make sure you have your current tariff to hand in order to correct him if he starts falsifying the facts.

What do you think?

Are these price hikes fair? How hard will they hit you?

Let us know your thoughts in the comment box below.

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