Savings on gas and electricity are being missed

Energy customers who fail to shop around are paying £170 more a year on bills than they need to, the UK energy regulator has said.

Ofgem said people who were 'not active in the market' were missing out on the best deals.

It has unveiled a new online element to its Energy Best Deal campaign.

The scheme already offers face-to-face advice on cutting bills through the Citizens Advice Bureau in England and Wales.

Some 60,000 people have received help since the campaign started in 2008. A similar scheme is run through Consumer Focus in Scotland.
Guides

In the new campaign, a series of video guides are aimed at raising awareness of customers' rights. They include dealing with doorstep sales people, debt and disconnection, and getting help for consumers struggling to pay their energy bills.

'Our latest research shows that consumers who are not active in the market are paying on average around £170 a year more than they have to,' said Sarah Harrison, of Ofgem.

'Energy Best Deal is here to help the four out of five consumers who say they not taking part in the energy market to shop around to get a better deal.'

All of the major energy companies raised bills for customers at some point during the winter or early spring.

Consumer Focus, the government-backed consumer watchdog, welcomed extra assistance for customers.

'With energy just one of many rising household bills, customers will be keen to save extra pounds but may not know the best way to cut their costs,' said Audrey Gallacher, from Consumer Focus.

'Switching can mean big savings, especially if a customer has never changed the energy firm they use or if they change from paying by cash, cheque or pre-pay meter to direct debit.'

'Yet many customers can be bamboozled by the complex array of tariffs on offer. Extra advice from Ofgem and Citizens Advice on getting the best deal can help energy customers to guarantee they save money.'

Bill says:

'Its right that the Energy regulator Ofgem is making such a big deal about customers making sure they get the best deal for their gas and electric bills.'

'The market had a damning report from the regulator Ofgem recently where they said customers were 'bamboozled' by a complex system of tariffs and that they had found evidence that the big six gas and electricity firms have adjusted prices in response to rising costs more quickly than they reduced them when costs fell.'

'Ofgem say that energy customers who fail to shop around are paying £170 more a year on gas and electric bills than they need to.'

'I would concur with this as Bill Expert customers saved an average of £181.95 when arranging a dual fuel energy transfer using our services during the period 1st Sep 2010 to 31st Dec 2010'.

Regulator confirms 30 day notice for price changes

Energy regulator Ofgem has confirmed new rules that mean energy suppliers can no longer notify customers of price increases up to three months after the prices change. Instead, energy companies must give consumers at least 30 days advance notice before putting up their prices.

The changes come into effect on 28 April.

Energy companies will also have to give customers 30-days notice if they make changes to a contract which will leave the customer significantly worse off.

Ofgem also recently reminded suppliers that when they write to each individual customer to inform them of such changes they must be able to explain how it will affect them specifically.

Andrew Wright, Ofgem's senior partner for markets, said: 'Today's changes will again show that we are serious about making sure suppliers play it straight with consumers. We believe that 30 days advance notification of price increases, coupled with our new proposals for more transparency and an end to complex tariffs, will give consumers more power to make informed switching choices.

Bill says:

'This is great news for anyone struggling to pay their gas and electric bills. Energy companies in the past have only had to inform their customers of price changes up to 3 months after their gas and electric bill has gone up. Now the energy regulator Ofgem is making all gas and electric providers give their customers 30 days notice for price changes, in advance.

Energy bills to rocket by £172

ENERGY bills are set to hit record highs following the Japanese nuclear catastrophe.

British households will be hammered by an average rise of £172 – or 15 per cent – in their annual bills for gas and electricity as the crisis in Japan creates a global energy shortage.

The UK will be the country worst affected by the problems following last week’s earthquake. The damage to Japan’s nuclear reactors has forced it to increase the amount of liquefied ­natural gas it imports, diverting supplies away from the UK.

Britain is one of the largest consumers of LNG, with 60 per cent of global supplies coming here. One third of our power stations are also run on gas. As demand increases, supply has not risen and wholesale prices have been sky-rocketing. Energy experts have warned that these increased costs will be passed to the consumer.

The news comes after all of the big six suppliers recently brought in price rises of 5.9 per cent on average. This has already added £62 to household bills.

esterday analysts at Deutsche Bank said the damage to Japan’s power plants was likely to 'result in a permanent loss of some of the nuclear capacity ­already down.' This will make it increasingly likely it will have to keep importing more LNG .

Now UK bills could soar by 15 per cent. The average annual bill for consumers could rise from £1,132 to £1,304, the highest ever, warned Energyhelpline.com

Customers will be faced with a “double whammy” as oil prices also rise due to unrest in the Middle East and North Africa.

Energyhelpline.com said it already had 'indications' major providers were reviewing the prices they charged small business users. Households would follow. Paul Green, chief executive, said: 'There has been a 10 per cent rise in wholesale prices in the last month alone. Gas prices have also almost doubled since this time last year.'

Bill says:

'Its worrying that an event as far away as the the Japanese quake could affect the UK’s energy prices, but now the Japanese need more natural gas to power their stations as their nuclear ones are shut down, the UK will have to pay more for its gas as wholesale prices will go up with the increased demand. Experts predict this could mean energy suppliers pass on the increased cost to the consumer.'

Get an online tariff if you can

If high energy bills have you reaching for the thermostat, then switch to the cheapest tariff.

If you are looking for the most competitive rate, it will always be an online tariff. According to comparison website, Moneysupermarket.com the cheapest on the market is WebSaver 11 from British Gas this dual fuel product would see an average household paying just £895 per year. Keep in mind that this tariff is available for a limited period and includes an early termination fee of £35. Compare this to the energy giant's average standard tariff of £1,097 and you could save £202.

Another to consider is EDF Energy's Online Saver v9 which costs just £916 compared to the standard tariff of £1,118 – a savings of £202. However, keep in mind that cancellation charges apply and will cost £30 for electricity and £20 for gas. With EDF, you can further reduce your bill and sign up for this dual fuel tariff via cashback website Quidco.com and earn £50.

If you are looking for the best fixed-rate tariff, take a look at Ovo Energy's New Energy Fixed which will cost the average customer around £973 per year. Uniquely, with this tariff you will earn 3pc interest if you account is in credit. Another option is EDF's Annual Fix v1, which will cost the average household £993 over the year compared to the standard tariff which comes in at £1,118 – a savings of £125. With this tariff, there are cancellation charges of £25 per fuel or £50 for both is you cancel before the end of the contract.

Bill says:

'I’d have to agree with this one. If you are looking for the most competitive gas and electric rate, it will nearly always be an online tariff.'

Easy way to cut your bills

You could save up to £300 a year by bundling your broadband, digital TV and home phone bills with one provider, according to research.

Despite this, over a quarter of broadband customers do not bother to bundle their internet with digital TV or home phone services.

Bundling your services is an easy way to save some extra money off your household bill total.

For example, subscribing to BT's Unlimited Weekend Plan for your home phone, with AOL Broadband Only for your internet and Sky TV Plus One package for your TV would set you back £580.92.

While Virgin Media's broadband, home phone and TV package costs £275.88 in the first year, a total saving of £305.04.

The research by Broadbandchoices.co.uk revealed that 40% of people have not switched because they did not believe it would offer better value for money.

A further 21% did not think that the service would be up to scratch while 16% said it was too much of a hassle to switch.

Michael Phillips, product director at Broadbandchoices.co.uk, said: 'The bundles market is fiercely competitive and providers are doing all they can to improve services and gain more customers – consumers may be surprised what they can get if they just call up and ask for it.'

What to consider when choosing a broadband bundle

Think literally - Try to realistically consider your needs as a broadband user. If you spend over two hours per day using iPlayer or downloading music and film you will need a package that can support that activity (20GB+ or an 'unlimited' usage allowance). If all you do is email and surf the net you'll probably only need a basic service (20GB or lower).

TV channels - All packages and providers offer slightly different combinations (or packs) of channels. Make sure you do your homework and factor in the cost of adding that crucial sports pack or movie channels, depending on your priorities.

Broadband speed - Whilst non-cable services can offer impressive broadband speeds, Virgin Media's cable technology does provide very fast and very reliable broadband. But it's horses for courses and if you're a light internet user, high speed and unlimited downloads might not be the most pressing issue. However, if you are a large family with multiple PCs in the home competing for bandwidth, it could be time to upgrade to a fast 20Mb+ connection

Home phone - Check to ensure that the call package is relevant. Do you need free evening or weekend calls? Also check the cost of calling internationally and charges for calling mobile phone networks, as these can prove expensive but are often forgotten when choosing a bundle.

Functionality - If you want to go for HD TV then Sky is pretty hard to beat. Those who are more concerned with video on demand services might be better off opting for Virgin Media.

Bill says:

'There are many ways to cut your bills. Going for a duel fuel gas and electricity tariff is one, bundling your phone, broadband and TV package is another ‘The bundles market is fiercely competitive and providers are doing all they can to improve services and gain more customers – consumers may be surprised what they can get if they just ask for it.'

'When choosing a broadband, phone and TV bundle you need to think about how much broadband you may use and what speed you would like to have, what TV package you need, what call package is most relevant to you and what other features and benefits you would like.'

Water bills on the up - you can still save

Water bills will rise in line with inflation, the industry regulator has announced.

Average bills are expected in increase 4.6 per cent, the equivalent of £16 in a year, to £356, Ofwat said.

Regina Finn, the chief executive of Ofwat, said: 'People can shop around for the best deal on many things, but not water. Our job is to do this for them. No one wants to see bills increasing, particular in tough economic times. When we set limits on prices, we listened to customers and challenged companies hard. If companies don't deliver for customers, we will take action.'

The bill changes for this year will come into effect at the beginning of April and apply until March next year.

It is the latest increase household bills to hit families, experts warned.

Ann Robinson, of price comparison website uSwitch.com, said: “Although the increase may only seem like a drop in the ocean, it comes after a tough couple of months for consumers, who have seen their budgets under more pressure than ever before. After a full round of energy price rises, increased VAT and inflation that is outstripping pay rises, consumers may feel like they’re going under. The £16 increase could squeeze the last drops out of household budgets. ”

“An increase in water prices is also hard for consumers to take as they don’t have the option of switching to a cheaper supplier like they can with other home essentials. The only choice available is to go on to a water meter which could save consumers £56 a year.

'As a rule of thumb, if there are more bedrooms than people in a household then a water meter could be more cost effective.'

The smallest forecast increase among the major companies this year, according to Ofwat's figures, is likely to be 2.7%, or £11, for customers of Welsh Water.

Customers of Northumbrian Water will face the largest rise of 7.8 per cent, or £24 while the 1.3 million people who are served by South West face the propect of a £500 bill for the first time.

Among the smaller water-only firms, customers of Portsmouth Water will receive bills that are just 2.5 per cent higher this coming year, an increase of £2.

Customers of Bristol Water will have to pay an extra £13 this year, a rise of 8.2 per cent on their water bills.

Bill says:

'Unfortunately water bills are one of the household bills that the majority of people do very little about. After all, you have no choice who you buy your water from. You can however have a water meter installed that could save you up to £56 a year. As a rule of thumb, if you have more bedrooms than people in your house then you could benefit from a water meter'

Simple changes slash £6000 off family household bills

BILLS might be going through the roof but we’ve managed to save a family £6,000 with a ­brilliant money makeover.

With rising food and energy prices and Government cuts to benefits, it is vital we all get cash savvy and save money wherever possible.

Keeping on top of things is difficult with our increasingly busy lives, but keeping a close eye on the pennies will make sure you have enough cash for treats, such as a holiday.

As well as cutting back on ­non-essentials, switching providers and changing the way bills are paid can add up to big savings.

You can spread the cost and keep budgeting simple by paying regular bills by direct debit, which can save the average home £435 a year.

Many companies offer discounts on prices to encourage customers to use this method as it works for them too – saving time and costs.

Mum Jessica Tozer can’t believe how much we chopped off her monthly bills.

Jessica is juggling bringing up 18-month-old Harry, a full-time job in marketing, running the family home and looking after the finances of a an elderly relative in sheltered housing. Her electrician husband Paul runs his own business.

'I try to plan as much as possible,” says Jessica, 35, from Middlesex.

“When things don’t quite work out I resort to quick fixes, which usually cost more time and money.'

We have managed to slash almost £500 off the family’s monthly budget by either switching their products to better deals, bundling some of the products together, changing payments to direct debits or with a bit of forward planning.

Jessica was spending £650 a month on grocery shopping, mainly as she rushes around, fills the trolley then ends up wasting food.

By planning meals, checking the freezer and cupboards and writing out a shopping list of what she really needs – then sticking to it and not impulse buying – she could save £30 a week. That would add up to £1,440 per year.

CONTROL

The £200 a month she spends on breakfast and lunches at work could be chopped to £80, saving £120 if she gradually cuts down and takes food in such as fruit, salads and soup from home.

It’s often really simple changes that can then be added up to make the biggest savings.

Jessica says: “I’m amazed at how much I can save. My new bills seem much simpler and easier to control. Combining products has not only cut prices but it’s cut the number of firms I have to deal with.

'Paying almost all of them by direct debit will free up time I used to spend paying bills at the bank or on the phone. And it means I can forget about them and won’t ever miss payments.'

'I can see how this will free me up from some of the boring ­bill-related admin. Any extra time I can get to spend with my son and husband is a wonderful bonus.'

Andrew Hagger, from Moneynet.co.uk, says: 'Getting to grips with your finances may sound like a bit of a dull chore but if you’re prepared to invest a little time on budgeting and planning ahead, the financial rewards will make it a very ­worthwhile exercise.'

And, as our family shows, getting the figures right can add up to thousands of pounds back in your pocket each year.

Bill says:

'£6,000 a year is an astonishing saving to make each year and is a massive bonus for this young family, but this kind of saving shouldn’t be beyond most people responsible for paying household bills.” By checking your bills one by one, cutting back on non-essentials and shopping around to see what savings can be made you should be able to make similarly spectacular annual savings to help you through these tough austerity times.'