Winter fuel bills soar

Tuesday, 02 February 2010 12:40

By myfinances.co.uk staff

Winter fuel bills for an average household are likely to be 20% higher this year as a result of the coldest weather the UK has seen in two decades.

Average households can expect to pay an average of £104 more for their winter fuel than last year, up from £512 to £616, new research has suggested.

The study compiled by comparison website moneysupermarket.com also shows that annual energy bills have increased by a whopping 127% since 2003 from £543 to £1232.

Since 2003 the average fuel bill for the winter period has jumped from £217 to £616 a year, an increase of £399, or 183%.

Scottish Power charged its customers the most for energy at £1,362 for an average household for the year.

NPower was the second most expensive supplier charging an average household £1256 for a year's worth of energy.

Standard quarterly tariffs are the most expensive ways to pay for energy yet over half of all people are still on a standard tariff, the comparison website said.

While providers had introduced cheaper tariffs for new customers since May 2009 they had failed to cut prices for existing customers, it added.

Scott Byrom, utilities manager at moneysupermarket.com, said: "Many people will be getting a hefty quarterly statement landing on their doormat at anytime, that's if they haven't already received this nasty surprise.

"This bill is likely to be the biggest winter energy bill they've ever had to pay. It is therefore extremely important for bill payers to address this issue and do what ever they can to reduce their bills going forward - especially as the cold weather and snow looks set to continue for many parts of the UK.

"Although there were price decreases throughout 2009 the majority of these price moves were to providers' online tariffs rather than to standard tariffs.

"With the backdrop of recession, a very cold winter and higher than usual energy consumption, people need to think seriously about how they will pay for their usage. The prospect of forking out for a chunky winter bill should be the catalyst to swap to the best tariff for their region and consumption, as well at actively trying to be more energy efficient and reducing the amount of energy they use to save money."

Reducing room temperature by 1 degree centigrade could save as much as 10% on the annual heating bill, he said.

Households are also advised to switch off all lights and electrical appliances at night, invest in proper roof insulation, double glazing and draught excluder packs, change to energy-saving light bulbs and close all curtains at dusk to keep the heat in.

For working couples and singles, it is more cost-effective to heat only the rooms they use most rather than an entire property.

Microwave ovens are more energy efficient than conventional gas or electric cookers while a shower uses a third as much hot water as a bath.

Householders can also save money by only boiling the water they need rather than filling kettles for cups of tea and coffee and by turning the temperature down to 30 degrees C on washing machines.

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