FIX YOUR FUEL COSTS
Speculation in the press in the last few days suggests that British Gas is planning a rise in gas and electricity prices for its 12 million customers. Bills are predicted to rise by 8% adding more than £100 to the average annual dual fuel bill. And if one major energy supplier raises prices the other five will soon follow.
No announcement has been made and British Gas refuses to comment. But there is a golden moment to announce the rise after the party conferences finish on 2 October and before Parliament returns on 8 October. That gives it plenty of time to factor in the rise before 14 November when it makes its regular interim management statement to investors about how the business is doing. Whenever an announcement is made the rise will start 30 days later – just in time for winter.
So perhaps now is the time to fix your energy costs to take you past this winter’s rises – and past future ones as well. Fixed price deals are disappearing fast so act now.
One widely recommended cheap deal is the M&S Energy Fix and Save, a one year fix which lasts to 30 September 2014. It could disappear any day. One disadvantage is that there is you a £50 penalty for those who leave. Penalties like that should generally be avoided as they lock you in and discourage you from fixing again if cheaper deal comes along. The longest and cheapest fix seems to be the Npower Price Protector which lasts until 31 March 2017 and has no penalty for leaving early. Scottish Power and EDF also have fixes available to 2016.
You will also save more than 5% on your bill by changing to a monthly direct debit if you do not already pay that way. The disadvantage is that the energy company charges you each month on estimated use and you can end up in credit. You should be refunded any surplus once a year – and more often if you ask for it.
Go to one of the accredited switching sites like Switch with Which www.which.co.uk/switch/ or www.energyhelpline.com which gives you £15 cash back. The best guide to switching is Money Saving Expert www.moneysavingexpert.com/utilities/you-switch-gas-electricity . It also runs the Cheap Energy Club which helps with the switching process and lets you know if a cheaper deal comes along.
If you have never switched and are on a standard tariff then you will always save by switching and even a long term fix is cheaper than the current average standard tariff. So not only do you save money but you know the price you will pay to keep warm will stay the same for up to three winters.
If you are on a pre-pay meter then you can still switch though the choices are more limited and the savings not as great. If you can it is best to change to a credit meter and pay by monthly direct debit.
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