Tenants most at risk from energy price hikes

Tenants are more at risk from expected energy price rises than homeowners as suppliers boost bills in response to the increasing cost of wholesale gas and electricity, according to new research by MoneyExpert.com.

The independent financial comparison website says people who rent spend as much as 13 per cent of their weekly disposable income on gas and electricity costs, whereas those with mortgages typically pay out just five per cent.

And with experts predicting that household energy bills could increase by as much as 40 per cent this winter, meaning people may have to fork out as much as £400 more a year on average for their gas and electricity, MoneyExpert.com warns that tenants in particular may struggle to meet the cost of rising bills. Last year the average cost of a combined gas and electricity bill was £924.

MoneyExpert.com believes one of the main reasons tenants are suffering is because they leave the decision on changing suppliers to their landlord and is urging them to switch to cut costs.

According to the MoneyExpert.com Switching Index over three million households switch energy supplier every six months and experts believe that you could save as much as £365 a year by switching gas and electricity supplier.

Sean Gardner, director of MoneyExpert.com, said: "Tenants typically pay out more for their energy and power than homeowners. Whether as a total per household or the average per capita, the simple fact is, more of your money goes on fuel.

"Theoretically suppliers do not differentiate between renters and homeowners so it must come down to the fact that tenants just don't think about changing supplier because that responsibility lies with their landlord. But if you're paying more than you should you have every right to ask your landlord to look at switching - it needn't take long and if you can save money it's well worth it.

"Monthly bills for a rented home are up by over 10 per cent across the country so renters are feeling the pinch. Paying more for your energy than you need to is not the way to relieve the pressure."

MoneyExpert.com offers a unique service which enables people to find the financial products which best meet their specific needs, and which they are more likely to be successful in being accepted for. It includes exclusive research conducted by MORI, which reveals providers' service levels. This information is married up with a financial database which lists the products suited to the customer. For the first time, people can review a product's price, features and also the level of service offered by the provider to enable them to make a more informed choice.

MoneyExpert.com aims to demystify the complex world of personal finance, and to help inform customers of the choices available. The service can be found at moneyexpert.com