Energy use has gone down but what we pay for it is rising sharply.
Households are paying an extra £410 a year on their energy bills than a decade ago, despite now using less energy.
That’s according to the latest research from consumer champions Which?, using figures from the Office for National Statistics and Department of Energy & Climate Change.
Back in 2003/04, the average household spent £790 (adjusted for 2012 prices) on energy. But by 2012 that spending had rocketed to £1,200, despite the amount of energy used falling, according to figures from the Office for National Statistics.
Outstripping inflation
Which’s research suggests the price of gas and electricity jumped by 137% across the decade, compared to inflation of 27%.
To put that into context, water bills rose 62% and food rose 42% over the same time period. Alcohol increased just 21% over the decade.
Which? argues these findings are further evidence that significant energy market reforms are needed in order to restore confidence and guarantee fair prices.
Compare gas and electricity tariffs with lovemoney.com
Shopping around
The good news is the average household doesn’t need to be spending more than £1,000 on its energy bills. As the tariff table below demonstrates, you do have options if you want to cut your energy bill, besides turning down the thermostat.
|
Tariff |
Average annual cost |
Tariff length |
Exit fees |
|
£961.79 |
Fixed until November 2015 |
£30 per fuel |
|
|
Extra Energy Fresh Fixed Price |
£967.91 |
Fixed until November 2015 |
£25 per fuel |
|
Ovo Energy Better Energy |
£991.85 |
Fixed for 12 months |
£30 per fuel |
|
£998.37 |
Fixed for 12 months |
£30 per fuel |
|
|
Npower Online Price Fix |
£999.70 |
Fixed until 30th November 2015 |
N/A |
Source: lovemoney.com energy comparison centre. Based on average consumption, which according to Ofgem is defined as 3,200 kWh of electricity and 13,500 kWh of gas per year, and on quotes for southern region. Other regional prices may vary
Compare gas and electricity tariffs with lovemoney.com
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