Households hit by New Year energy bill horror
2013 could bring a chill to households with the arrival of a hefty winter energy bill warns MoneySupermarket.
Analysis from the comparison site found homeowners typically use around 40 per cent of their annual energy consumption during the winter months. Customers on standard tariffs could therefore face a wallet-busting average bill of £530 next month - a substantial blow to any household after the expense of the festive season.
Clare Francis, consumer finance expert at MoneySupermarket said: "Many households will be dealing with a festive financial hangover this January so a huge energy bill will come as an unwelcome shock. A spate of price rises which mostly came into effect before the Christmas period saw the cost of energy increase by an average of7.6 per cent, leaving many people worrying about the crippling costs they could face in the coming months.
"You can fight back against rising costs and it's quick and easy to do. All you need is a copy of your latest bill and 10 spare minutes when you can get online, compare available tariffs and move on to a better value energy deal. Those languishing on their provider's standard energy product should take action as quickly as possible; the typical saving they could make by moving to the best value fixed deal is £1734. This saving would go some way to offset their costly winter bills, and by fixing their energy, they can safeguard against any future price rises over the term of the deal and ensure they don't face the same bill shock after Christmas 2013.
"There are also simple things you can do to reduce the amount of energy you use at home. Turning your heating down by one degree, doing your washing at 30 degrees rather than 40 or 60, taking a shower rather than a bath will all reduce your energy consumption and collectively over the course of the year could save you a significant amount of money."
Fixed energy deals coming to an end!
Research also reveals households already on ‘fixed' energy deals need to be aware of when their deals are coming to an end. According to MoneySupermarket, WebSaver 13 and Online Fixed from British Gas expired on 31st December as well as Energy Discount and Fix for 2012 from EDF and Online Energy Saver 16 from Scottish Power. A further group including Fixed Price 2013 from EDF, and Bill Saver, and Price Fix 2013 from Npower all expired yesterday.
Clare Francis continued: "Many people have done the right thing and moved onto fixed energy tariffs to protect themselves from future price hikes. However, it's really important to remember to switch again when their current fixed deal ends. Otherwise they'll probably be transferred onto their provider's standard price plan which could result in their annual energy costs leaping by more than £300.
"Ideally customers who have fixed deals expiring should look to begin the switching process about six weeks before the termination date of the deal to avoid paying more than they need for their gas or electricity. However, it's not too late to switch now, even if your deal has already expired. The best fixed deal currently available is the iSave Fixed v6 from First Utility, with typical bills of around £1,170 and would safeguard you from any further price rises for the duration of the 12 month contract. Energy bills only ever seem to be on the up so I recommend taking a fixed deal for peace of mind and not having to worry about price rises if they are announced."