The coldest winter in 20 years has led to heavy criticism regarding the prices offered to customers by gas and electricity suppliers. Whilst the winter months are now drawing to a close, consumers still stand to benefit financially by switching gas and electricity supplier.
Switching Gas and Electricity Supplier to Secure Better Prices
According to uSwitch.com, the average dual fuel bill in January 2008 was just £912. It currently stands at £1,293, representing an increase of 42% in just 12 months. This added £381 to the average gas and electricity bill. However, wholesale prices of gas and electricity have since fallen by 40%. Sadly, the herd mentality of gas and electricity suppliers means that prices have hardly been reduced at all.
More recently, foreign gas and electricity suppliers have come under pressure from MPs to reduce their gas and electricity prices. British Gas cut its prices by 10% in early February 2009 and it is likely that other gas and electricity suppliers will have little choice but to follow suit shortly.
Tim Wolfenden, head of Home Services at uSwitch.com stated "By not switching, consumers could waste over £2.3 billion in total or £334 each. Those who have never switched before and are sitting on an uncompetitive standard plan have the most to gain."
Smart Meters and Cheaper Gas and Electricity Prices
The use of a smart meter allows customers to save money on their gas and electricity bills. Smart meters optimise fuel usage. First Utility will install a smart meter which will allow a consumer to monitor the time when they use the most fuel and choose the right price plan for their needs.
Smart metering also means that estimated bills will no longer be an issue. Estimated bills have affected over 11 million people in the UK with customers owing an average of £137 to their gas and electricity suppliers.
Switching Gas and Electricity Provider to Get Green Energy
It is believed that, on average, 25% of carbon footprints come from home energy usage. Increasing numbers of consumers are choosing to switch gas and electricity supplier for environmental reasons rather than to save money.
It may be sensible to wait a few weeks before initiating a gas and electricity supplier switch in order to see which companies offer customers the best rates. However, using a gas and electricity comparison site could help reduce household bills considerably.
Those that found this article useful may be interested in reading about ways to cut bills and monthly outgoings and reduce spending during the credit crunch. People struggling with personal debt may find practical solutions to credit card debt of assistance.
Asa Ghaffar - Asa has over 10 years of practical experience in loan approval, secured lending, bad credit repair, stock trading and debt management.
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