We round up the energy-price increases from the big suppliers, compare them with smaller suppliers, and give you several fresh, new tips!
Now that all six of the major energy providers have increased their tariffs, let's take a look at the increases:
Energy price increases this summer
Supplier | Date announced | Gas increase (%) | Electricity |
|---|---|---|---|
British Gas | 30 July | 35 | 9 |
E.ON Energy | 21 August | 26 | 16 |
EDF Energy | 25 July | 22 | 17 |
Npower | 28 August | 26 | 14 |
Scottish and | 21 August | 29 | 19 |
ScottishPower | 28 August | 34 | 9 |
Average | 28 | 14 |
Data provided by Xelector, which powers The Fool's gas and electricity comparison tool.
Back in 2005 we paid £675 for gas and electricity on average, according to OFGEM. Now, extrapolating from the latest OFGEM figures I can find, I calculate we pay £825 for gas alone. Combined with electricity we pay on average £1,300, so roughly double the 2005 amount.
Florian Ritzmann from Xelector agrees that £1,300 is the official figure but, as he says, no one believes that. He believes the real average figure we pay is closer to a huge £1,600.
Are these price rises merely greed?
Age Concern, Child Poverty Action Group and National Energy Action will lobby the Government today over a combination of huge numbers of households in fuel poverty and soaring energy company profits. 5.5 million unfortunate people are now classed as being in fuel poverty. Meanwhile, energy company profits have doubled, Age Concern says, since 2006, having risen from £2bn to £4.3bn.
Clearly, then, rising energy prices aren't just about increased costs to suppliers.
Smaller suppliers
It's not easy to get figures for smaller suppliers. I carried out a number of random searches with The Fool's tool to test it out. I had to bear in mind that British Gas' and E.ON's cheapest tariffs* have yet to go up. Same with Telecom Plus (Utility Warehouse), Good Energy, Spark Energy and Green Energy UK.
With so many small suppliers to increase their prices I found it too hard to see the trend as yet. We'll have to keep you informed. However, I did find that Ebico frequently came top for those of us who use little energy, so you may see them at the top when you compare prices.
Anyway, here are some tips for people who are struggling with their fuel bills:
Three tips if you're struggling with your bills
If you are already struggling with your bills or are in arrears at this time of year (when your usage is lower than winter) then that is a sign of trouble ahead. Contact your supplier to discuss your options. Here are the rules about being in debt to your supplier:
- If you are in debt as a result of inaccurate billing, the repayment of that debt should take as long as it took to run up the debt. If, for example, you have not been billed correctly for a number of years, your repayments should take just as long.
- Several Trust Funds exist to help people in serious difficulties - your supplier will know about these and will be able to tell you about your eligibility. Ask your supplier for an `entitlement check' to find out what help is available.
- If you believe you are at risk, and someone in your household is of pensionable age, disabled or chronically sick, ask your supplier to add you to the `Priority Services Register', which can be useful if you find yourself in debt later. If you are on that list, the supplier should offer you additional assistance.
*British Gas' Click Energy version 5 and E.ON's EnergyOnline Extra Saver version 8.