Energy Price Hike - Customers Fight Back

CHESTER, England, June 14, 2011 /PRNewswire/ --

Consumers take action to save money - 1,264 per cent uplift in energy switches through moneysupermarket.com
Bill payers can save £382 a year by moving to cheapest 'fixed' deal
Apathy will cost consumers dearly

British bill payers are reacting to the latest energy price hike news by taking control of their finances and seeking ways to save on their energy costs, says moneysupermarket.com.

Britain's number one comparison site has seen a big increase in people switching to a better value energy deal following energy giant Scottish Power's price hike announcement. From August 1^st 2011 the cost of standard gas will increase by 19 per cent and the cost of standard electricity by 10 per cent, adding an extra £180 to customers' annual bills.  This price move has sparked savvy switchers in to action and  moneysupermarket.com's energy comparison tool has seen a whopping 1,264 per cent uplift to the number of customers swapping their energy tariff^[1] compared to the days leading up to the announcement.

Apathy will cost consumers dearly; bill payers languishing on their supplier's standard tariff could save up to £382 a year by swapping to the current cheapest fixed deal - the Fix Saver v2 tariff from EDF Energy, at £1,009 a year^[2]. Furthermore, if all bill payers moved to the best fixed deal, we could not only save £2.3 billion collectively^[3] as a country, but would freeze energy outgoings until September 2012.

Scott Byrom, utilities manager at moneysupermarket.com said: "Customers are certainly taking a stand against energy price hikes; a crucial move as apathy certainly won't be rewarded.  The Scottish Power price rises will affect 2.4 million households. On a national scale this adds an extra £420 million to Scottish Power customers' annual bills.

"This increase has really ignited our customers to act and get a better deal before any further price increases are announced. Now really is the time to get on to the best priced energy tariff for your usage level and area you live. Bearing in mind historical energy market price rises, it's highly likely the other energy providers will follow suit. In the face of rising prices, opting for the market leading fixed product Fix Saver v2, from EDF Energy with average bills of £1,009 is the best way to safeguard against further price increases from the energy giants.

"Shopping around using a price comparison site for the best value energy product is vital and I urge everyone worried about the cost of their bills to act quickly as the best priced products are unlikely to be available for long.  The more of us who switch to a better deal the more suppliers will need to compete for our business."

Notes to Editors:

^[1]1,264 per cent uplift in energy switches on Wednesday 8^th June 2011, compared to the daily average for 1st - 6th June 2011.

^[2]Standard, fixed and online / best energy tariffs

NEW CONSUMPTION LEVEL

British Gas: average standard tariff (£1,096.75), average online/best tariff (£954.59 Web Saver 12), fixed tariff (£1,217.41 Fixed Price June 12).

EDG Energy: average standard tariff (£1,118.28), average online/best tariff (£940.49 Online S@ver 10), fixed tariff (£1,009.05 Fix Saver v2).

E.ON: average standard tariff (£1,122.83), average online/best tariff (£964.97 SaveOnline v7), fixed tariff (£1,126.05 Fixed Price v5).

Npower: average standard tariff (£1,148.98), average online/best tariff (£973.28 Sign Online 22), fixed tariff (£1.013.80 Go Fix 6).

Scottish Power: average standard tariff (£1,391.21), average online/best tariff (£932.10 Direct October 12), fixed tariff (Platinum Fixed Energy 2014).

Scottish & Southern: average standard tariff (£1,094.11), average online/best tariff (N/A), fixed tariff (N/A).

Average: average standard tariff (£1,162.03), average online/best tariff (£953.09).

Sourced by http://www.moneysupermarket.com 09.06.2011

^[3]We know from Ofgem data that 58 per cent of gas customers have never looked for a better deal, with 57 per cent of electricity customers remaining apathetic. Therefore, of the 27 million households in the UK, at least 15 million have never moved away from their incumbent gas or electricity supplier.

http://www.ofgem.gov.uk/Sustainability/SocAction/Publications/Documents1/Ipsos-MORI%20switchingsurvey2009.pdf

£1162.03 - £1009.05 (average cost of standard - best priced fixed) = £152.98 (£153)

£153 x 15,000,000 = £2,295,000,000 (£2.3bn)

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SOURCE moneysupermarket.com