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It's vital to shop around

Sep 11 2004

By Evening Gazette

 

The era of cheap energy - following the privatisation that reshaped the industry is ending, to blow a hole in household budgets.

Although plenty of energy suppliers have lifted prices in 2004, British Gas has ignited a gusher of public outrage with a percentage rise almost in the teens - which comes on top of a 6pc rise in January.

Energywatch, a consumer watchdog, is urging people to shop around for better value.

Energy prices are soaring and the cost of imported wholesale gas is due to climb 50pc between 2003 and 2005 as Britain's home-grown supplies run down.

But "better the devil you know," may explain why BG has so far lost only 8m of the 20m customers it had in 1998 when consumers gained the right to find an alternative supplier.

Nearly 16m households in the UK have yet to switch energy suppliers - typical British inertia, says leading energy website uSwitch.com, which is costing them £2.2bn a year.

Says uSwitch spokeswoman Jennifer Evans: "Any consumer still using BG and their local electricity board is paying 20pc more for their energy than necessary. And after these latest rises, a family-of-four in a three-bedroomed house taking gas and electricity from BG will pay £900 per year on energy bills, compared with £750 a year ago.

"Deduct that 20pc saving, and a household could still cover its energy needs for the same price as a year ago. It is essential this time to consider a switch in supplier."

At Simply Switch, the UK's first phone-based consumer advice service to compare electricity, gas and telephone charges, chief executive Karen Darby says: "People are crazy to stay with the most expensive supplier of energy, but many still fear problems in switching when they are merely changing the name on a bill. Household gas supply is still maintained by Transco, electricity by the local board, regardless of the provider."

Yet Ms Darby at Simply Switch says consumers are only just accepting the idea of switching when charges go too high.

Simply Switch claims its volume of inquiries has "doubled or trebled" from the usual 1,000 calls per day. Ms Darby says Atlantic Energy & Gas, a subsidiary of Scottish & Southern, is attracting cost-conscious customers.

She also points out that finding the right supplier is not entirely a matter of price comparison.

"Some suppliers offer delayed rebates," she says, "when consumers wait 12 months before they get the benefit from switching. Buyers must consider a move carefully before they switch."

However, a phone interview lasting barely ten minutes gives a good idea of whether a change is sensible - and the likely savings.

The changeover, in Ms Darby's experience, takes a maximum of four to six weeks.

Free energy price checks are available from Simply Switch (0800 781 1212); uSwitch Home Services provides free, impartial advice on 0800 093 06 07 or visit www.uSwitch.com.

IDEAS TO CUT YOUR ENERGY BILL

* Replacing a 15-year-old boiler could save over 20pc on your fuel bills, around 32pc if it's a condensing boiler, and up to 40pc if you install good heating controls as well.

* Double-glazing to cut heat loss in the home.

* Pay your bills by direct debit.

 

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