New Year starts with price rise misery for thousands

Despite the price of wholesale gas plummeting and British Gas’ forecast for lower energy prices in the spring, uSwitch.com, the UK’s leading independent comparison and switching site warns that energy customers on capped rates finishing imminently will be shocked to find that their bills jump by 49% or £317.

2007 is set to begin where last year left off. 2006 saw an unprecedented 13 prices rises with an increase of 37% on the average consumer bills and on January 1st Scottish and Southern Energy customers face a 12.2% hike in their gas and 9.4% rise in their electricity bills adding a further £97 to Scottish and Southern Energy bills.

British Gas has also seen fit to increase prices on its online Click Energy tariff, up 12.5% for gas and 9.5% for electricity, despite issuing a price freeze in September 2006. Customers on Powergen or ScottishPower’s capped deals will also see their bills rise from next week as their fixed period comes to an end. Customers coming to the end of a capped or fixed price plan will be automatically transferred to a alternative plan with their current supplier: the onus is therefore on customers to ensure that they are on the best plan for their individual needs.

Tim Wolfenden, Product Strategy Manager at uSwitch.com comments: "This January, like last January, is starting with price increases despite noises that prices will come down in the spring. In addition, thousands of energy customers are coming to the end of their competitive capped rate deals and will no doubt be unprepared for the significant 49% jump in their annual bill.

“This makes January the ideal time to review your energy provider. uSwitch.com’s comparison service provides consumers with an up-to-date picture of the energy market so they can make an informed decision which supplier best suits their needs.”