Beleaguered Brits call for further energy price cuts

Beleaguered Brits call for further energy price cuts

Brits believe they are paying over the odds for their energy bills, despite energy providers starting to drop prices, according to research from moneysupermarket.com1.

* 67 per cent feel they still pay too much for their energy and demand further action

The UK’s leading price comparison site found following the first cut to gas prices this year2 over two thirds of Brits (67 per cent) believe they are still paying too much for their energy and demand further price cuts. 29 per cent believe the recent price drops are long overdue and only a small minority of Brits, three per cent, are currently happy with the cost of their utility bills.

Scott Byrom, utilities manager at moneysupermarket.com said: “This poll highlights the current sentiment of bill payers in the UK. There is no doubt the British public is in desperate need of a grander gesture when it comes to cuts to their energy bills. Despite seeing four price drops so far from British Gas, Scottish & Southern, E.ON and EDF Energy; our research shows Brits want more.”

Scottish & Southern undercut British Gas last week in the energy pricing war. Effective 30 March, households with an average consumption can expect to see a £66 drop in their annual bill with standard prices falling to £1,185 a year3. British Gas’ new standard dual fuel price, effective 19 February is £1,245 per annum, £60 more expensive. However, British Gas’ online tariff Websaver1, is still the cheapest product on the market at £1,059.

The most recent reductions from both E.ON and EDF Energy saw a reduction to the price of electricity only and no movement from these providers on the cost of gas for their consumers. The nine per cent drop in electricity would see E.ON bill payers save around £44 per year and the 8.8 per cent drop in EDF Energy charges for electricity would see a £40 drop in bills over a year.

According to moneysupermarket.com Brits typically use around 40 per cent of their annual energy consumption over winter4, so despite the recent price cuts households will pay a premium for their winter usage under their old pricing plan. Pre-price cut, a customer on a standard tariff, paying an average £12955 a year by quarterly cash and cheque (QCC), could therefore face a bill of £518 at any moment.

Scott Byrom added: “For anyone who has never swapped provider and is languishing on a standard tariff there are savings to be made now by shopping around for the best tariff for you. Swapping your payment method will reduce your bills too - paying by monthly direct debit will offer more competitive rates than settling bills by quarterly cash or cheque.

“For other energy users although both price decreases are a step in the right direction, British households have already paid through the nose for their winter energy consumption. Many consumers will hope there will be further price cuts on the horizon, and with four more energy giants yet to put their cards on the table, we can expect more providers to respond with similar price cuts.

“My advice to those bill payers is to sit tight and see how the other energy giants react. During this re-shuffle of the energy market consumers should arm themselves with information on their current provider, tariff and consumption to make the right choice when shopping around for the best deal. Our research reveals Brits are calling for further price cuts - there are definitely savings to be had out there and consumers should be proactive in looking to reduce the cost of their bills.”

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