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Energy customers face a long winter of discontent

9th October 2009 Print
Gareth Kloet, head of energy at Confused.com says: "Whilst it is good to know that Ofgem have compiled this report, none of the possible scenarios modelled is good news for consumers who are already struggling to deal with the last 12 months of price rises. In its report, Ofgem outline 4 forecast scenarios that predict price rises of between 14 and 60% for customers by the middle of the next decade as a result of addressing the challenges to gas and electricity supplies in the UK . Critically however, whilst each scenario tries to predict the cost implication on customers, it does not give any account of the other costs associated with retail prices - the largest of these being wholesale costs. The outlook is therefore bleak but necessary as security of supply is a critical issue that needs addressing through investment.

With these things in mind, apathy is not an option because stopping prices from rising at all would be the equivalent of trying to hold back the tide. There are nevertheless a number of steps that consumers can take to minimise the impact of any of the predicted changes on their bills in the short term to medium term. Customers should continue to shop around for the best deals, opt for online tariffs and pay by direct debit. With one eye on the future, seeking to implement energy efficiency measures in homes or even opting for a green tariff are moves that customers can take now to help meet Britain's future commitments for reduced energy consumption and carbon emissions.

The future may look dark when it comes to energy bills, but there are still substantial savings to be made immediately for customers willing to spend a few minutes online comparing providers and getting on the best tariff for their circumstances as the difference between the best and the worst can be huge.