Energy prices to keep rising for ten years!

by Matt Ridout on 07 March 2012  |  9 comments
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Energy bills are likely to keep increasing for the next decade. But you can limit the damage by switching.

It may be disconcerting for many to read a leading energy supplier’s comments suggesting that energy bills could continue to increase for another ten years.

Phil Bentley, British Gas managing director, has been quoted as saying: “People will have to pay more per unit [over the next ten years] and they are therefore going to have to be more diligent in saving energy.” Increases in the cost and impact of green taxes, as well as improvement work needed for the national grid have been cited as reasons for the price rises.

Obviously this will be a worrying statement for many to hear, having been hit hard by significant price increases already in the past year. Recently prices were adjusted down by the major suppliers but only by about 2-3% when spread across an average household dual-fuel bill. This means that customers are still paying greatly increased rates for their utilities.

So what is the best advice? With many different rates and options available the best course of action is to compare your current deal using a price comparison service to see if you can make huge savings on your annual energy costs. In some instances you can slash hundreds of pounds from your bills by switching nergy supplier.

Below is a list of the current cheapest available tariffs today:

* against typical bill of £1,345 per year as estimated by Ofgem. All costs are for a yearly average usage dual fuel household paying by monthly direct debit. Average usage defined by Ofgem as 16,500 kWh p.a. of gas and 3,300 kWh p.a. of electricity.

Compare energy tariffs at lovemoney.com

More: Ten ways to save energy | When paying an exit fee to escape your energy tariff is a good idea