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Rising fuel bills under the spotlight
Energy bills are rocketing. But there is little we can do about it if we want to keep using all our mod cons as well as heating our homes in the winter, writes Holly Thomas
Last week energy supplier EDF Energy kicked off round two of price rises for 2008. It announced a hefty increase of 22 per cent for gas, and by 17 per cent for electricity - adding more than £200 to a standard dual-fuel bill.
The average annual EDF bill for dual fuel customers is now a whopping £1,211.
This comes shortly after grim news from Centrica, the parent company of British Gas, which predicted that gas bills alone could rocket to more than £1,000 by 2010.
Once one provider prices upwards, rivals - npower, British Gas, Eon and Scottish Power and Scottish and Southern - tend to follow.
This is going to be more than tough for people who have already seen a succession of increases over the past 12 months and budgets are already tight with food, fuel and other daily essentials getting dearer.
Crucially, increases for household bills hit the over 50s harder than other age groups because in many cases they represent their main outgoings.
This means we have to be on the ball more than ever about how to ease the burden of price rises, and switch energy provider if it means saving money.
Many experts are advising people to switch to a capped tariff which is far more expensive at first, but in the long run might save you money.
Capped rates - or fixed price deals - set a rate usually for either one or two years, higher than current standard tariff prices, but the idea is to protect against future rises.
It's a good solution for people who prefer to know exactly what they will be paying this month, and next year. But you'll have to be quick to bag one - the cheapest of the fixed deals was taken off the shelves yesterday and the others could follow soon to be replaced with more expensive deals. Comparison sites will point you in the direction of the cheapest one for you.
Energy prices have become a hot topic, particularly among campaigners trying to help older people who are struggling to pay bills, especially in winter when the heating and lighting can be on almost round the clock.
If you are over 60, you are eligible for a winter fuel payment of £200 a year, rising to £300 for the over-80s.
But the National Pensioners Convention says with bills getting more expensive, the payments should be increased in line, to £500.
The Government needs to treat this call with urgency because winter will be upon us sooner than we think and at this rate many older people will struggle to meet payments.
* Holly Thomas is an award-winning financial journalist and Deputy Personal Finance Editor at the Daily Express and Sunday Express. Holly's views represent her own opinions and are for general information only. Always seek independent financial advice.
* Paul Lewis is away
- Getting the best deal: how to cut the cost of living
- Save energy, save money
- Managing your money
- Paul Lewis on the web: more of Paul's articles online
- More from Holly Thomas
