Households urged to switch energy deal
Households hit by energy bill hikes could be paying over £500 too much because they haven’t bothered switching deals.
During July and August, the top six energy suppliers introduced a second round of price rises that will see some households paying up to 35% more a year to heat their home. Since the start of 2008, average gas bills have risen by 52%.
Despite all six firms putting up prices, consumers have been urged to still consider switching their deal as they could pay less with another supplier.
According to moneysupermarket.com, some people are paying 63% too much for their gas and electricity following the price rises.
The second round of price increases has hit those in the North East the hardest, according to the price comparison website, where annual bills are in excess of £1,396. By switching, it is estimated they could making an annual saving of around £531.
Moneysupermarket.com says the online dual fuel deal from British Gas – called Click Energy 5 - is the best value tariff across all 14 UK regions.
Scott Byrom, utilities manager at moneysupermarket.com, says: "It's more important than ever for Brits not to be lulled into thinking they will automatically get the best deal with their current provider.
“I urge customers to proactively check the market to ensure they find the tariff that most suits their circumstances. Online products continue to lead the way in terms of value with monthly direct debit payments offering the highest level of customer discounts.”
The advice to consumer is also to keep checking prices, as deals are expected to change over the coming weeks.
This is more usually a feature of car insurance but it can also crop up in contents, mobile phone and pet insurance policies. An excess is the amount of money you have to pay before the insurance company starts paying out. The excess makes up the first part of a claim, so if your excess is £100 and your claim is for £500, you would pay the first £100 and the insurer the remaining £400. Many online insures let you set your own excess, but the lower the excess, the more expensive the premium will be.