You are here: Home - Household Bills - Understanding -

BLOG: Big six cut bills but households still shell out more for energy

0
Written by:
08/01/2014
Energy firms are cutting bills, but it is not all good news for consumers, writes Joanna Faith.
BLOG: Big six cut bills but households still shell out more for energy

The UK’s ‘big 6’ energy suppliers – npower, British Gas, EDF, E.ON, Scottish Power and SSE – have now all confirmed they will be cutting their prices following the rollback of Government levies on household energy bills announced late last year.

On the surface this appears to be good news for consumers, especially as the average household energy bill will have rocketed by £792, from £472 a year in 2004 to £1,264 a year by this March.

However, a closer look at the figures reveals a disappointing outcome for customers. According to analysis by uSwitch.com, consumers will in fact be worse off than before.

The comparison site has calculated that the cuts announced by suppliers average out at 3% or £40, making the average household energy bill £1,264 a year. But this still leaves consumers paying £53 or 4.3% more for their energy than in January last year when the average annual bill was £1,212.

In addition, the cuts will only partially reverse price hikes some suppliers announced last year. SSE, for example, has said it will cut bills by 3.5% from March but this won’t be enough to counter the 8.2% price hike in November.

Another frustrating result for consumers is that some suppliers will not be implementing cuts for a further three months. British Gas customers, for example, will have to wait until 24th March, meaning they will miss the benefit on their winter bills.

As uSwitch’s Ann Robinson points out, this proves there is only so much the Government has been able to do to help consumers. She says it’s time for consumers to help themselves by shopping around and considering smaller suppliers.

With a £274 difference between the cheapest and most expensive tariffs on the market, she might just have a point.

Joanna Faith is editor of Your Money

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
npower to cut energy bills by 2.6%

npower is to reduce its average annual bill by 2.6%, following changes to the Government's green levies.

Close