Monday, 1 August 2016

Household prices to increase

Prices to ruse for domestic energy customers

The Energy Advice Line has urged energy users to regularly switch suppliers following a new report predicting households will be paying £100 per year more for their energy within five years.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said the report showed the importance of keeping on top of rising prices by switching.

Independent energy consultancy Cornwall Energy predicts that household bills will have to rise to fund government policies designed to keep the lights on a support green energy.

"Policies designed to play a key role in fighting climate change don't come cheap and they will be a bigger fact of life in years to come," Mr Morgan said.

"But this doesn't mean there's nothing consumers can do to protect themselves from these extra costs - it's just a question of being a savvy shopper.

"This means not accepting the first deal that comes your way and seeking out the best bargains - the same approach you would take for any significany purchase.

"And with the costs of energy subsidies predicted to rise substantially, there's even more at stake than there was before."

The Cornwall Energy report said the subsidies paid by consumers to help suppliers cover the cost of various green energy policies would have risen by 124% by 2020 - 2021.

Analysts said that while the future cost of the actual energy remained uncertain, the costs of green energy policies were only heading in one direction: up.

The government claims it has taken various steps to reduce the burden on customer bills in the past 12 months, largely on the back of lower wholesale energy prices, but suppliers have been harshly crticised by consumer groups for not offering more generous cuts.

"Consumers really have to vore with their feet," Mr Morgan said. "There's nothing they can do about the subsidies that add extra costs to their bills, but consumers can switch to lower cost competitors and make significany savings in the process.

"Many energy users feel there is nothing they can do about these extra costs but, indirectly, there certainly is - by moving to suppliers where tariffs are lower.

"That's why it makes sound financial sense to use our free service - it's independent, impartial and quick. With a few strokes of a computer key consumers can see how much they save - and then we do all the legwork to arrange the switch."

The Energy Advice line Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumers when their fixed-term energy contracts are about to end.

For further information visit energyadviceline.org.uk