Latest Gas & Electricity News

15th January 2008 - EDF announces price rises

EDF has become the second supplier to raise prices on its standard energy tariffs. Prices will increase by 12.9 percent for gas and 7.9 percent for electricity from Friday.

Karen Darby, founder of SimplySwitch, the price comparison and switching service, comments:
"Last year, when all of the other major suppliers cut gas and electricity prices, EDF only reduced prices for gas. Throughout 2007, EDF's electricity customers experienced no benefit from the drop in wholesale prices. Because EDF is the 'default' electricity supplier for the whole of London, and several other regions, millions of people would have been affected.

"In April 2007, after coming under fire from energywatch, EDF announced gas price reductions that didn't come into effect until the middle of June. Now that prices are rising, customers have just three days to react before the new rates come into effect.

"This latest move by EDF, which has 7.8 million customers in the UK, may well open the floodgates for other companies' price increases. Last week, npower became the first provider to raise prices in 2008, adding around £159 to the average bill. Now that EDF has followed suit, we expect to see a flurry of price-rising activity over the coming weeks.

"Anyone wishing to protect themselves from price rises should act as soon as possible. Unfortunately, Scottish Power removed its capped deal from sale last week, leaving just one 'price protection' tariff remaining.”

To find and compare the cheapest deals, call 0800 781 1212 or visit simplyswitch.com.

4th January 2008 - npower the first supplier to raise standard prices

npower has become the first supplier to raise prices on its standard energy tariffs. Prices will increase by 17.2 percent for gas and 12.7 percent for electricity from tomorrow. This will add around £159 to the average bill. Because this move follows a steady rise in wholesale energy prices, the other major suppliers are expected to follow suit.

Karen Darby, founder of SimplySwitch, the price comparison and switching service, comments:
"Historically, when one of the big suppliers increases prices, the others are quick to follow. Analysts were predicting gas price rises of around 15 per cent. However, if the other suppliers follow npower's lead and raise prices by over 17 percent, householders will really feel the pinch.

"Fortunately, for those wishing to protect themselves from price rises, there are still some competitive capped deals available. Several providers have already stopped selling, or raised the price of their capped tariffs. Luckily however, there are still some available that offer good savings and charge no penalties if the customer wishes to leave.

"New Year's resolutions are often hard to keep as they require a great deal of effort and willpower. One that's quick and simple is reviewing your energy providers. By using a switching service, the whole process takes less than ten minutes and, with other price rises expected, it could save you a great deal of money."

To find and compare the cheapest deals, call 0800 781 1212 or visit simplyswitch.com.

14th December 2007 - More evidence that energy price hikes are not far away

More evidence emerged today that domestic energy prices are about to rise. Wholesale energy prices, which have been increasing steadily, caused British Gas to raise the price of its 'tracker' tariff last week. Today, npower followed suit by announcing that its wholesale price tracker would rise by 17 per cent for gas and 13 per cent for electricity.

While no suppliers have yet increased prices on their standard or online tariffs, British Gas owner Centrica warned today that, "the high wholesale prices will, if sustained, create a more difficult environment for retail energy suppliers in the UK going into 2008", adding, "we will continue to monitor this with regard to future pricing policy."

Karen Darby from SimplySwitch, the price comparison and switching service, comments:
"Historically, when one of the big suppliers increases prices, the others are quick to follow. Many analysts are now predicting price rises of around 15 per cent early on in 2008. If this happens, customers will be forced to pay an extra £131 per year in energy bills. With petrol prices rising, the cost of mortgages still high and the inevitable financial hang-over from Christmas, householders will really feel the pinch early in the New Year.

"Fortunately, for those wishing to protect themselves from price rises, there are still some highly competitive capped deals available. In the past, capped deals were expensive, with customers paying way over the odds for the added peace of mind. Now, however, some capped tariffs are almost as cheap as the UK’s best online deals and charge no penalties if the customer wishes to leave."

To find and compare the cheapest deals, call 0800 781 1212 or visit simplyswitch.com.

5th December 2007 - Watchdog slams prepayment meters – SimplySwitch comments

New research by consumer watchdog energywatch suggests that energy companies are exploiting some of the UK's poorest households. Pre-payment meter customers are currently forced to pay an average of £195 more each year for their gas and electricity. In some cases, households can be charged over £300 a year more than households signed up to the cheapest online deals.

Karen Darby, founder of the price comparison and switching service, SimplySwitch, comments:
"The most vulnerable households tend to have pre-payment meters and they not only pay a premium for their energy, but are left unable to choose from the full range of tariffs available. Providing they are not in debt, there is no reason why householders can't take the lead and ask their energy supplier to change them to a standard credit meter. This will not only mean lower bills and being able to pay by direct debit, but will also leave customers free to switch to the deal that best suits their needs.

"With energy bills predicted to rise by 15 percent in the New Year, we urge prepayment customers to request a credit meter as soon as possible. This will usually be fitted for free and should only take around two weeks. Once they're on a standard credit meter, they are free to switch to a far more competitive tariff. For those wishing to protect themselves from rising bills, there are some highly competitive capped deals available at present. For those with Internet access, online deals can save customers an average of £195 per year."

3rd December 2007 - Energy bills expected to soar in the New Year

Analysts have warned that householders' energy bills may soar by up to a fifth in the New Year as suppliers pass on a rise in wholesale gas prices. Russian firm Gazprom, which is responsible for supplying a quarter of Europe's gas, said that it expects suppliers to raise charges by February 2008.

Karen Darby from SimplySwitch.com, the price comparison and switching service, comments:
"Wholesale prices have been creeping up for some time now and several analysts are predicting gas bills to rise by at least 15 percent. Almost three quarters of UK homes are connected to the gas mains, so this will affect millions of people directly. However, it’s not just gas bills that are likely to soar. With 40% of the UK's electricity generated by burning gas, a rise in wholesale gas prices means that electricity bills will rise too.

"Over the past year, wholesale gas prices have fallen by half, with wholesale electricity costs down by almost a third. Despite some highly-publicised price reductions, the major suppliers have only brought average bills down by around 15 to 20 percent. If energy prices rise as much as analysts are predicting, customers could be forced to pay an extra £131 per year in energy bills.*

"It has already been estimated that an energy price hike of just 10 percent would push 400,000 more households into fuel poverty. A rise of 15 to 20 percent would have an even more devastating effect, and more needs to be done to protect vulnerable households.

"Luckily, for those wishing to protect themselves from rising bills, there are some highly competitive capped deals available. In the past, capped deals were expensive, with customers paying way over the odds for their added peace of mind. Now, however, some capped tariffs are nearly as cheap as the UK’s best non-capped deals and charge no penalties if the customer wishes to leave."

To find and compare the cheapest deals, call 0800 781 1212 or visit simplyswitch.com.

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* Based on a house in London that has never switched providers, using the national average of 20,500kWh gas and 3,300kWh electricity. Assumes a 15% price increase for both gas and electricity.

23rd November 2007 - SimplySwitch appoints Loanmakers as exclusive secured loan partner

After an exhaustive search of loan brokers nationwide, SimplySwitch, the national price comparison service, has signed-up Bolton-based Loanmakers as its exclusive secured loan partner.

SimplySwitch offers an independent and free price comparison and switching service across the UK. The service now covers numerous sectors including energy, broadband, home phone, credit cards and car insurance.

Alistair Tillen, Managing Director of SimplySwitch, comments: "We are delighted to be working in partnership with Loanmakers. We already offer customers a comparison service that incorporates a large number of sectors. Adding 'secured loans' to the mix represents a significant opportunity for the business and makes SimplySwitch a real 'one stop shop' for customers.

"We chose Loanmakers, in particular, because of their incredible speed-of-response to customer enquiries and excellent case-management system. Having met with a number of other brokers, we feel that Loanmakers is the perfect company to extend our offering to secured loans while maintaining the level of service that our customers have come to expect."

Tim Wheeldon, Managing Director at Loanmakers agrees: "This partnership means a great deal for Loanmakers. Being chosen ahead of our competitors in the industry for this high profile contract demonstrates the impressive team that we have on board. The growth that the company has sustained in the last 12 months, and the hard work that this has meant, has been justly rewarded. In addition, the win means that further growth will be possible in coming months."

21st November 2007 - Ofgem proposes new green energy rating scheme

A new scheme has been proposed by Ofgem that would see energy tariffs given a green rating based on how much carbon they generate. The energy regulator said that the proposals would work in a similar way to the A to F energy efficiency rating displayed on household appliances. Ratings would also be based on the percentage of energy generated from renewable sources. Ofgem would like to see the certification system up and running by summer 2008.

Karen Darby, founder of the price comparison service, SimplySwitch.com, comments:
"Green energy is really a grey area at the moment, so we welcome any move that makes it easier for the public to understand. Lots of energy companies play the ‘green card’ when trying to win customers. An independent rating system is exactly what’s needed to give consumers a more objective view.

"While Britain is very aware of green issues, recent research by SimplySwitch.com shows that 'green attitudes' aren't yet translating into action when it comes to choosing energy providers. While over two thirds of Britons claim that being 'green' is important, only 16% even consider switching to a green energy tariff. Price remains the biggest motivator for switching energy suppliers, with 'customer service in second place.

"The Government has stringent renewable energy targets for power companies. However, until demand for green energy rises above these levels, environmentally friendly tariffs won't come to the foreground. At the moment, price motivates Britain more than 'greenness', so it would be good to see the Government reduce tax on renewable energy in order to increase demand for the product."

12th November 2007 - SSE the latest energy supplier to introduce new tariff in time for winter

As the weather gets colder and people start to turn up their heating, energy companies are stepping up the fight to win new customers. Scottish & Southern Energy (SSE) is the latest supplier to introduce a new product, its 100 percent green electricity ‘Better Plan’ tariff.

Karen Darby, founder of the price comparison service, SimplySwitch.com, comments:
“This time of year is very important for energy suppliers because, as customers’ minds turn to the cost of heating, many people shop around for a better deal. Because of this, British Gas, Scottish Power and Powergen have all introduced competitive new tariffs during the last couple of months. SSE today became the latest supplier to unveil a new deal. However, unlike the other new offerings, SSE’s latest product ‘Better Plan’, doesn’t aim to compete in terms of price.

“While customers on Better Plan can still save money on their existing energy bills*, the tariff’s main selling point is its green credentials. Through Better Plan, SSE promises to match each customer’s electricity consumption with power from its hydro-electric plant… great news for those concerned about the environment.

“However, research by SimplySwitch.com shows that widespread ‘green attitudes’ aren’t yet translating into action when it comes to choosing energy providers. While over two thirds of Britons claim that being 'green' is important, only 16% would even consider switching to a green energy tariff. Price remains the biggest motivator for switching energy suppliers, with ‘customer service’ in second place.

“Fortunately, SSE’s levels of complaints are amongst the lowest in the industry and the supplier already offers a highly competitive fixed price tariff, ‘Price Fix 2008’. With analysts forecasting energy price hikes by January 08, we are expecting capped deals to prove increasingly popular over the coming months.”

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* 13% saving - based on an average-consumption property in London that has never switched energy suppliers.

30th October 2007 - Britain still lukewarm on green energy

With environmental issues top of the agenda, new research from SimplySwitch has revealed that green attitudes do not yet translate into action when it comes to choosing energy providers. While over two thirds of Britons claim that being 'green' is important, only 16% would consider switching to a green energy tariff[i].

'Saving money' remains the primary motivation behind switching energy providers. 80% of Brits voted this their top reason, with 'customer service levels' taking second place. However, many Brits do not realise that by switching to a green energy tariff they could save money, as all of the leading energy providers now offer green energy at highly competitive rates[ii].

Karen Darby, from SimplySwitch.com, comments: "Our research confirms that there is now a widespread support for green energy. However, these good intentions aren't yet turning into action because of the perception that going green is expensive. Luckily, signing up to green electricity doesn't have to mean paying more. While green energy is still more expensive than the cheapest 'online' deals, many green tariffs provide significant savings over suppliers' standard rates. They offer an excellent opportunity for customers to do their bit for the environment while also looking after their bank balance."

To find the best green energy tariffs call free on 0800 781 1212 or visit SimplySwitch.com.

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[i] SimplySwitch research conducted by tpoll
[ii] See Table below:

Supplier	Tariff	Annual electricity bill	Annual saving	Comment
Scottish Power	Green Energy H2O	£472.05	£67.06	ScottishPower's new Green Energy H2O tariff will match the amount of electricity you use with a supply of clean, green hydro-electric power.
Southern Electric	Power2 No Standing Charge	£484.11	£55.00	This tariff will match every unit of electricity you use with a unit of cleaner, greener hydro-electricity to the national grid. And, if you're a dual fuel customer, they will also plant trees each year to help offset the carbon dioxide emissions created by your gas central heating system.
Powergen	Go Green	£499.21	£39.90	Powergen's new Go Green tariff will match every unit of electricity that you use with one from hydro-electric and wind power and offset your gas usage by 'offsetting' the greenhouse gas emissions caused. There are also exclusive discounts on energy efficient products.
nPower	Juice	£500.53	£38.58	Npower Juice is clean, green electricity available at no extra cost to you or the planet. For every unit of electricity used, npower will ensure a unit of electricity from clean renewable sources has been fed back into the National Grid.
British Gas	Future Energy	£517.71	£21.40	British Gas will replace all of your electricity usage with electricity generated from 100% renewable sources such as wind, landfill gas and hydro-electricity.
EDF*	Green Tariff	£560.65	-£21.54	EDF's Green Tariff replaces all of your electricity usage with electricity generated from 100% renewable sources such as wind, landfill gas and hydro-electricity.

The greenest options:

Ecotricity	New Energy Plus	£574.57	-£35.46	100% Renewable Energy. Ecotricity is dedicated to building new sources of renewable energy and invest more per customer in this than all the other UK suppliers together.
Good Energy	Standard	£661.88	-£122.77	Good Energy is an independent UK company who supplies only 100% renewable electricity to homes and businesses across the UK.
Green Energy UK	Green Energy 100	£671.90	-£132.79	Green Energy 100 is a 100% pure green electricity tariff. Green Energy UK buy electricity from a range of non nuclear renewable British sources and sell it onto homes and businesses throughout the UK.

Source: SimplySwitch.com
Accurate: 1 September 2007
Figures based on a three bed house in London that had never switched electricity supplier

* London is in EDF's PES area - savings may be available when switching from incumbent suppliers in other PES areas

23rd October 2007 - British Energy’s plant shutdowns cause spike in electricity prices… but rising gas prices are the real concern

British Energy announced yesterday that it had shut-down of several of its nuclear reactors after finding corrosion during routine inspections. The temporary closures, which will affect a quarter of British Energy’s nuclear-generated output, caused wholesale prices to leap by 17%. However, it is rising wholesale gas prices, not electricity, that present the real concern to consumers.

Karen Darby from SimplySwitch.com, the price comparison and switching service, comments:
“This news is bound to cause concern for customers. However, those fearing higher electricity bills shouldn’t be too alarmed by this announcement. Spikes and troughs occur frequently in wholesale electricity prices and they’re normally absorbed by the energy suppliers. While British Energy hasn’t yet revealed how long the plants will be out of action, the shutdowns are likely to be temporary and should have little effect on long-term costs.

“What’s more worrying for customers, however, is that wholesale gas prices have started to creep up. With 70% of UK homes connected to the gas mains, and 40% of the UK’s electricity coming from gas, rising wholesale prices are bad news for the entire domestic energy market. Some analysts are predicting that energy prices will rise by the end of the year and we are seeing more and more customers enquiring about capped energy tariffs.

“Luckily, there are some highly competitive capped deals available. In the past, capped deals were cripplingly expensive, with customers paying way over the odds for their added peace of mind. Now, however, some capped tariffs are nearly as cheap as the UK’s best non-capped deals and have no penalties if the customer wishes to leave.”

To find and compare the cheapest deals, call 0800 781 1212 or visit www.simplyswitch.com.

1st October 2007 - British Gas launches new tariff in time for winter

As the weather gets colder and people start to turn up their heating, energy companies are stepping up the fight to attract new customers. British Gas is the latest supplier to launch a new tariff with the introduction of its ‘Click Energy 4’ tariff. The energy giant claims that it now offers the cheapest dual fuel rates of any of the major suppliers.

Karen Darby, founder of the price comparison service, SimplySwitch.com, comments:
“It is great news for consumers that the energy companies are, once again, prepared to battle it out. Switching suppliers is now easier than ever before and energy firms need to compete on both price and service levels if they want attract and keep customers.

“This is a crucial time of the year for the energy industry and, like British Gas, Powergen and Scottish & Southern Energy have also introduced new deals ahead of the winter months. While British Gas currently tops the tables with its latest offering, its lead is only marginal and it has suffered recently from some well-publicised customer service problems. It will be interesting to see how the other suppliers respond to British Gas’ move over the coming weeks.

“While this new tariff can offer big savings, the most suitable tariff for the customer still depends on their circumstances, how much energy they use and which PES (Public Electricity Supplier) area they live in. Click Energy 4, for instance, is only available online or through a comparison service. Once signed up, the customer will need to read their own meter and enter the results online. Because of this, ‘online’ tariffs such as Click Energy 4 may not be suitable for the elderly, or those uncomfortable with online transactions.

“As winter draws in, anyone looking to save money on their household bills should use an impartial, energywatch-accredited price comparison service. There are huge price differences between the various providers and tariffs, but it’s up to the customer to be proactive and find out how much they could save by switching.”

26th September 2007 - Builders bury the true cost of energy

New build property dwellers are losing out at the hands of property developers, paying up to a staggering £15 million in additional charges every year[i] for receiving their gas through private pipe lines, without their knowledge.

Traditionally, all gas pipes were connected to the mains gas network by National Grid Transco. However in a cost cutting exercise, developers are now turning to private companies (IGT – Independent Gas Transporters) to lay pipe work, thereby reducing initial connection charges.

Research by SimplySwitch.com, the price comparison and switching service, reveals that over half (56%) of new home dwellers in the UK were not aware of the higher charges associated with an IGT network. Furthermore, 96 per cent of them were not informed of this at the time of purchase or rental, leaving them with no alternative but to pick up the additional costs long-term[ii].

Karen Darby, from SimplySwitch.com, comments: “Four out of the big six suppliers[iii] are currently charging their customers more for receiving their gas through an IGT network. These charges are often hidden, resulting in a higher unit rate and / or a yearly supplemental charge.

“According to our research, over half (54%) of consumers don’t know which mains gas network they are serviced by and it’s only at the point of switching and / or set-up of their utilities they realise. This can be very frustrating for the customer who is effectively picking up the tab for the developer year on year, and the initial savings made during construction are unlikely to have been passed on to them in terms of property price and / or rental rate”.

The research also indicated that 90 per cent of customers felt they should have been told about their gas configuration before committing to a property. A third (32%) cited the developer as the party most responsible for communicating this information whilst the solicitor (18%), vendor (15%) and estate agent (14%) closely followed.

Karen Darby concludes: “Industry regulator Ofgem is estimating that by 2008, over one million homes and businesses will be connected to an IGT network[iv]. At present we are facing a situation whereby consumers on the same street may be paying much higher rates for their gas because of where they live. This is only set to get worse with Gordon Brown pledging to build three million new homes by 2020[v].

“In addition, some suppliers have started to exclude IGT customers from certain new tariffs coming onto the market such as capped, fixed or online and the choice of payment methods is limited. In an era of soaring energy prices it seems unfair that an increasing number of people are paying over the odds and are not receiving the same benefits of competition and choice”.

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[i] energywatch report “why consumers on IGT Networks are losing out” June 2006
[ii] Research carried out by SimplySwitch.com – 1,000 respondents, July 2007
[iii] Research carried out by SimplySwitch.com – 1,000 respondents, July 2007 (please see table iii below)
[iv] energywatch report “why consumers on IGT Networks are losing out” June 2006
[v]www.building.co.uk 11th July 2007

25th September 2007 - Energy suppliers voted worst for inaccurate billing

25 September 2007. Energy suppliers have been exposed as the biggest offenders for sending inaccurate bills to customers. The energy industry was voted to be worse than the Inland Revenue, council tax departments and mobile phone companies in a recent survey.

Karen Darby, founder of the price comparison service, SimplySwitch.com, comments:

“The vast majority of suppliers are pushing customers to pay by monthly direct debit, with most offering discounts to those that do. The only problem with this is that suppliers need to ensure that bills are accurate because, if they’re not, the customer can end up paying too much or too little over an extended period of time. In the UK, suppliers are only required by law to read a customer’s meter once every two years. While most meters are read more regularly than this, there still remains a huge potential for over or under-charging.

“One thing that people often forget is that energy suppliers don’t actually ‘supply’ the energy. In Britain, Transco is responsible for delivering gas to people’s homes, while the local Public Electricity Supplier (PES) is responsible for delivering electricity. From a consumer’s point of view, the supplier is more like a retailer… and what other type of retailer estimates its customers’ bills?

“All the energy suppliers have to do is bill their customers accurately and many of us have been left wondering why they can’t get this right. The big six energy providers are established, multi-million pound businesses and the problem of inaccurate bills is hardly new. Hopefully, with the introduction of smart meters, this problem should become a thing of the past. It’s certainly about time that this issue was resolved.

“In the mean time, most suppliers now offer competitive online tariffs. If customers have access to the internet, we would always advise that they compare online deals. They usually offer the suppliers’ cheapest rates and, because customers take their own readings, the bills are more accurate.”

4th September 2007 - Utilita becomes the first energy company to introduce 12 month tie-ins

Utilita has become the first energy supplier to tie customers into long-term contracts following Ofgem’s removal of the 28-day switching rule. The energy regulator said, at the time, that it had ditched the restriction to encourage providers to introduce expensive energy-efficiency measures and smart meters into customers' homes.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“Power firms have long argued that it’s too costly to install energy-efficient equipment in homes because customers were free to switch providers once the work had been carried out. It was for this reason that Ofgem changed the rules to allow energy firms to tie customers in for a longer period.

“However, following the change, Utilita, a small independent energy provider, has become the first supplier to bring in 12-month contracts as standard without introducing additional benefits.

“Switching suppliers has led to the competitive market that we enjoy today and any move that forces customers into long-term contracts will not be well-received. Utilita is the first company to take advantage of Ofgem’s new rules for commercial gain. If the larger suppliers follow Utilita’s lead, competition in the energy market will suffer and Ofgem may need to re-evaluate its plans.

“If mainstream suppliers do introduce longer-term tariffs, it will be the first time that any have taken this step. To date this has only applied to certain capped price deals and smaller, new-entrant providers that have introduced a 12 month contract with benefits that were justified to the regulator in advance.

“Time will tell how the UK’s main suppliers react to the new contract-length rules. We recommend that consumers check that they’re on the best deal now as there are currently no barriers to switching. If suppliers do to introduce longer term contracts, we hope that consumers won’t have to pay punitive ‘exit charges’ when they want to switch.”

24th August 2007 - npower launches new online tariff

24 August 2007. npower today launched ‘Sign Online 8’, it’s latest online energy tariff. Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“This tariff is highly competitive, so it’s great for competition in the energy sector. We’ve not had the best of summers and with autumn not far away, thousands of customers will soon be searching out the cheapest deals ahead of the winter months. This move by npower should prompt rival suppliers to lower their prices, just as people start to turn on their heating.

“While the ‘Sign Online 8’ can offer big savings, the cheapest tariff for the customer still depends on how much gas and electricity they use and which PES (Public Electricity Supplier) area they live in. Because of the way npower’s tariff is structured, households that have above-average energy consumption (for example large family houses) may benefit from the tariff. However, for lower energy users, it may not be the best deal. Also, because the tariff’s designed to attract new customers, npower only offers the cheapest rates to people outside its ‘host regions’ of Yorkshire, Northern and the Midlands.

"Because of these complications, anyone looking to save money on their household bills should use an energywatch-accredited price comparison service. Such services are guaranteed to be free and impartial and will take into account factors such as energy consumption and location to find the greatest possible savings. There are huge price differences between the various providers, but it’s up to the customer to be proactive and find out how much they could save by switching.

“With energy companies bombarding us with messages about their ‘standard tariff’ price cuts, it’s easy to forget that the real price war is being fought online. With all online tariffs, customers are able to take their own meter readings and enter them over the Internet, thus avoiding the problem of over-estimated bills. We always advise customers with Internet access to compare online tariffs. They are usually the suppliers’ cheapest deals and, because customers take their own readings, the bills are more accurate.”

20th August 2007 - Powergen launches new fixed-rate product

20 Aug 2007. Powergen has launched a new fixed-rate product. Energy prices will be fixed at the current standard rates until 1st January 2009. Throughout this period, prices will not change even if Powergen alters its standard rates.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“If householders are concerned about their energy bills rising, fixed tariffs can offer peace of mind. However, thanks to the fierce competition within the energy sector, there are better options available. If customers really wish to protect themselves from future price rises, several providers offer capped (rather than fixed) deals which protect customers from rising costs but will also pass on savings if prices fall.

“When considering a ‘fixed’ or ‘capped’ tariff, customers should always bear in mind that cheaper energy deals are available. Most suppliers now offer online tariffs that are up to £200 per year cheaper than their standard rates. While they offer no protection against rising costs, energy prices would have to rise by up to 25% before a fixed deal became the cheapest option.

"Consumers need to be proactive and seek out the best deal available. There are huge price differences between the various tariffs available and it’s up to the customer to find out how much they could save by switching."

1st August 2007 - "No obligation" energy tariffs could become a thing of the past

Ofgem has removed the rule that prevents power companies from forcing customers onto long-term agreements. The energy regulator said that it had ditched the restriction that ties a customer to a supplier for just four weeks to encourage providers to introduce energy efficiency measures and smart meters into customers' homes.

Power firms have long argued that it would be too costly for them to install energy-efficient equipment in homes because customers were free to switch to a cheaper provider once the work had been carried out.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “From a consumer’s perspective this is a worrying move by Ofgem. Switching suppliers has led to the competitive market that we enjoy today and any move that leads to onerous contract conditions is unwelcome. We’ve seen in other markets contracts of 18 months and more introduced and this inhibits people’s ability to find a better deal.

“The ruling is likely to have come about to help suppliers recoup the capital costs of installing smart meters and energy efficiency measures in customers’ homes. It is likely that they will introduce longer term contracts and we suspect that once one supplier acts, others from the ‘big six’ will follow.

“If mainstream suppliers do introduce longer term tariffs, it will be the first time that any has taken this step. To date this has only applied to certain capped price deals and smaller, new-entrant providers that have introduced a 12 month contract with benefits that were justified to the regulator in advance.

“If suppliers do introduce longer contracts, it could be good news for them but not necessarily for consumers. Such a move would only be good news for consumers if it offered them an attractive deal with additional, meaningful benefits.

“While all consumers want to do their bit to help the environment, the main thing people want is value for money and not to feel they are tied into an uncompetitive tariff. A 12 month contract could take away the uncertainty of future price hikes for the contract period, but on the flip-side, it could restrict customer choice, remove the competitive edge from the industry and see those already tied-in left paying more if prices fell.

“Time will tell how suppliers react to the ruling from Ofgem. We recommend to consumers that it is worth checking you are on the best deal now as there are currently no barriers to switching. If suppliers do to introduce longer term contracts, we hope that consumers won’t have to pay punitive ‘exit charges’ if they wanted to switch.

“Since the domestic energy market was fully deregulated, consumers have benefited from increased competition. Any changes to how the market operates should be fully regulated to ensure that consumers as well as suppliers benefit.”

27th June 2007 - Prepayment customers missing out on savings

Ofgem, the energy regulator, has said that customers who pay their energy bills by prepayment meter are missing out on average savings of £100 by not switching energy supplier.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“Prepayment meters rely on antiquated technology and should be phased out over the coming years. The most vulnerable households tend to have prepayment meters and they pay a premium for their energy. In the UK, around four million households are defined as fuel poor as they spend more than 10% of their income on energy bills. It’s this type of customer, who can least afford it, that’s paying over the odds for their gas and electricity.

“We urge consumers to be proactive and ask their energy supplier to change their prepayment meter to a standard credit meter. This will not only mean lower bills, but will also leave them free to switch to a different supplier. As long as the customer isn’t more than £100 in debt, their energy supplier should be able to replace their meter for free within a couple of weeks.”

A prepayment household in Birmingham using British Gas for gas and npower for electricity would currently pay £617 a year for their gas and £436 a year for their electricity - a total of £1053.

Darby says: “By switching to a standard credit meter and paying by monthly direct debit, their energy bill would drop to £904 – a saving of £149 a year. Having a credit meter also means that the customer is free to switch suppliers. If this same household switched to the best available deal, they could net a total saving of £286.”

Birmingham household example* :

	Current prepayment cost	Standard credit meter cost	Best alternative dual fuel supplier
Total cost	£1053	£904	£766
Saving		£149	£286

Source: SimplySwitch.com

*Based on standard energy usage and incumbent suppliers of British Gas for gas and npower for electricity. Accurate 27 June 2007. Prices rounded to the nearest GBP.

About SimplySwitch

SimplySwitch is an independent and free price comparison and switching service. It offers consumers impartial, up-to-date information on gas, electricity, home phone, broadband, mobile phone, credit card and car insurance providers.

As well as providing a web-based service, SimplySwitch operates the UK’s largest, dedicated customer service team for those wishing to compare and switch providers 'offline'. Whether customers switch through the website or via the contact centre, the service is completely unbiased and does not cost a penny.

Launched in 2002 and located in Croydon, SimplySwitch adheres to voluntary Ofgem, energywatch and Ofcom guidelines and saves people over £20 million on their bills every year.

In June 2006, SimplySwitch founder Karen Darby won the finance award at the First Women Awards. Backed by the Confederation of British Industry (CBI), the award recognises pioneering women who have broken new ground in British business life. In November 2006, Darby was also a finalist for 'Entrepreneur of the Year' at the National Business Awards.

To try the service for yourself, call 0800 781 1212 or visit www.simplyswitch.com.

15th June 2007 - Scottish Power and EDF cut prices

Over 10 million energy customers are set to see their bills fall from the 15 June 2007. Customers with both Scottish Power and EDF Energy will finally see their bills cut after wholesale prices fell significantly in the last 12 months.

Scottish Power customers will see their prices drop by up to 16.5% for gas and up to 5.5% for electricity, while EDF Energy customers will see their gas bills drop by 10.2%.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, said:

“Wholesale energy prices have come down by over 60% in the last year. In February, British Gas sparked a price war by announcing cuts and other suppliers from the ‘big six’ followed suit. After criticism from Ofgem and Energywatch, Scottish Power and EDF Energy followed their competitors and dropped their prices.

"While the recent price changes have resulted in better deals for the consumer, energy prices still have long way to fall before customers can recover the extra amount they've had to pay in the last three years.

“Since January 2004, gas prices had risen by over 80% and electricity prices by over 50%. So far, none of the suppliers has reduced prices by anywhere near the amount that they raised them in the preceding 12 months, nor has anyone reduced prices in line with the drop in wholesale costs. These recent price drops only go a small way towards redressing the balance.

"Switching not only reduces household bills, but also helps boost competition and ultimately drives down prices. For the vast majority of customers, there are no penalties for leaving an energy company. Now that all the suppliers have announced a cut to their standard tariffs, it’s a level playing field – there’s never been a better time to switch.

“Customers should note that, even though tariffs are set to drop, as long as you remain with your original gas or electricity supplier, you are paying more than is necessary.

“As the current price war comes to a head, hopes of large-scale price cuts are fading fast. All providers have returned strong profits and, if wholesale prices remain low, we urge suppliers to offer more benefits back to the consumer.

“There remains a large gap between the cheapest and most expensive tariffs. Despite all the price cuts, there are still great savings to be made by switching suppliers.”

14th June 2007 - British Gas announces regional price cuts

British Gas has announced price cuts to its standard tariff for customers in the ‘Scottish Power’ and ‘Scottish Power/Manweb’ regions. The energy supplier has made the adjustment in light of Scottish Power’s price cut which comes into effect on 15 June 2007.

Because of these latest reductions, British Gas’ electricity and dual fuel standard tariffs will remain slightly cheaper than the local supplier when Scottish Power’s 15 June price cuts come into effect.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“British Gas (known as Scottish Gas in the ‘Scottish Power’ region) has tinkered with its tariffs rather than implementing meaningful price cuts. While all price cuts are welcome, the actual reduction on an average electricity bill equates to only £1.30 a year – hardly a life changing amount. British Gas’ latest price adjustment only affects customers in certain areas of Scotland and Wales and means that the supplier will narrowly top the tables when comparing standard dual fuel and electricity-only rates.

“This type of ‘jockeying for position’ shows the lengths that energy companies will go to in order to maintain a superficial advantage. British Gas’ reputation has suffered lately following a number of problems with its billing system, but it has pledged to win back customers by fighting hard on price. So far, however, none of the suppliers have reduced prices in line with the drop in wholesale energy costs and the recent ‘price war’ has only gone a small way towards redressing the balance.

“Customers should bear in mind that British Gas’ latest cuts only apply to standard tariffs. We would always advise people with internet access to consider signing up to an online tariff. They usually offer the cheapest rates and, because customers take their own meter readings and enter them online, the bills are far more accurate.”

4th June 2007 - Ofgem unveils plans for a green energy rating scheme - SimplySwitch comments

4 June 2007. Ofgem today outlined plans to apply a ratings scheme to energy companies’ ‘green tariffs’. The energy regulator and the Energy Savings Trust are jointly proposing a scheme that would give each tariff a star rating based on how eco-friendly it is.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“At the moment, green energy tariffs are very difficult for the customer to understand. Energy companies have a wide range of measures in place that qualify them to advertise their tariff as ‘green’, some of which have a more positive effect on the environment than others. The ‘green issue’ is more of a ‘grey issue’ at present, so introducing a system to objectify the ‘greenness’ of each tariff will be an important step forward.

“According to research by SimplySwitch, less than 9 percent of households choose an electricity supplier based on environmental considerations. This could well be a reflection of how difficult green tariffs are to understand. An easy-to-understand key is exactly what consumers need and should help people to make a better-informed choice when it comes to renewable energy. At the moment, it’s very easy to compare energy tariffs based on price. Once the new rating scheme is in place, it should be equally easy to compare tariffs on environmental grounds.

“While this new scheme should make green energy more accessible to consumers, we would like to see more support from the Government. One of the key problems with green energy is that tariffs are rarely able to compete on price with the best ‘regular energy’ deals. It would be fantastic if the Government took steps to make green energy more affordable. Waiving VAT on the most eco-friendly tariffs would be an excellent way of achieving this.”

31st May 2007 - Scottish and Southern's profits pass £1bn for the first time

Scottish & Southern Energy, the UK's third largest supplier of electricity and gas, has announced full year profits of £1.08bn, up 24% on last year. It has also announced an increase in customer numbers from 6.7m to 7.75m and unveiled plans to encourage customers to reduce their energy consumption. Karen Darby, Founder of SimplySwitch.com said, "Scottish and Southern has gained over a million customers in the last year. It held off longer than other suppliers in passing price increases on and has remained relatively competitive throughout the year. This huge increase shows that if you are competitive, customers will flock to you.

"Scottish and Southern has announced plans to reward energy efficient customers. Through the scheme Scottish and Southern believe that the average household will be able to save £100 on their energy bills if they reduce their consumption of electricity and gas and invest in energy saving products. Any move to cut bills and greenhouse gases is welcome but we urge customers to look at all their options. Other providers offer similar incentive schemes and their tariffs may be cheaper.

"The energy market is consolidating and Scottish & Southern is often mentioned as a takeover target. British Gas and Scottish and Southern are the only UK owned energy suppliers remaining. It is important that it continues to fight off potential takeover bids as further consolidation in the industry can only be bad for competition."

23rd May 2007 - Energy white paper out today

The details of the Government’s long-awaited white paper have finally been announced.

As expected, a raft of measures have been set out, with the focus on cutting greenhouse gases, making UK homes more energy efficient and tackling the future security of the UK’s energy supply. It has also been announced that a consultation on new nuclear power stations will last until October.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “On first inspection, the Energy White Paper contains many positive steps that will help secure the UK’s energy supply and meet demanding targets in the fight against global warming.

Security of supply

“Any measures to increase energy generation in the UK are welcome – we would be in a better state as a nation if we were a net energy exporter rather than importer and today’s announcement goes some way to address this issue.

“Energy generation within the UK would not only help us manage carbon emissions, but would also help stabilise price fluctuations and security of supply. As existing nuclear facilities become obsolete, Britain is set to become up to 90% more reliant on energy imports from Russia. With news this week that the Russian Government has approved plans for an oil pipeline that could tighten Moscow’s grip over Europe’s energy supplies, concerns over security of supply will be heightened.

Smart meters

“Plans for visual displays and ‘smart meters’ to be installed in homes will encourage people to use less energy by displaying up-to-the-minute analysis of their energy usage and costs. Also, as they can be read remotely, suppliers don’t need access to read the meter, so they will do away with the archaic way in which customers are billed.

“It could take over 10 years to install meters and cost up to £8bn. While the cost and timescale are significant, the future benefits cannot be ignored. This is about the long-term future, and a 10 year installation programme would be a small price to pay if the true benefits can be realised.

Energy saving measures

“Plans were also announced to ensure suppliers work more closely with customers to deliver measures to improve energy efficiency. These are steps welcome, but as there is a huge difference between the prices that energy companies charge, we don’t want to see consumers tied to one supplier.

“Levels of fuel poverty have doubled since 2003, now affecting nearly 4 million households in the UK. Although there is a long way to go, the steps announced today will help ensure that suppliers work closely with consumers to help eradicate the problem.

Future plans

“With a consultation on nuclear power set to run to October and renewable projects being developed, it is clear the Government is taking steps in the right direction. These measures will help maintain the security of the UK’s energy supply and ensure the UK has a reliable mix of energy sources.”

14th May 2007 - Centrica predicts annual profits may beat forecasts

Centrica is expected to inform shareholders at the AGM later today that annual profits may beat forecasts.

Over 900,000 customers have joined British Gas following its two price cuts earlier this year. It now has 15.8m domestic customers and has recruited 800 additional front line customer service staff.

Karen Darby, Founder of SimplySwitch said:

"British Gas has decided to fight the price war online. It has set its online tariff to ensure it is top of the comparison tables and this is what the majority of the new customers will have signed up for. This is good for customers willing to pay by direct debit and wanting an online account, but bad for more traditional consumers who prefer paper billing and quarterly statements.

“900,000 customers returning to British Gas proves that consumers will respond if providers are competitive. British Gas is leading the way, with two price cuts already this year, and we urge other providers to do the same."

11th May 2007 - Energy white paper delayed

The energy white paper has been delayed after intervention from the Chancellor. Following yesterday’s announcement, Gordon Brown is said to be keen to lead the debate over Britain’s future energy policy. Also, energy suppliers have warned the Government that the development of ‘clean coal’ technology will not take place without heavy subsidy and higher electricity prices.

Karen Darby, founder of SimplySwitch.com comments: “News that the energy white paper is to be delayed will provide an opportunity for Gordon Brown to steer the debate round the UK’s future energy policy. With his ‘Gordon Brown for Britain’ campaign getting under way, key issues such as the energy white paper will have been pushed well up his agenda.

“The long-awaited white paper should announce new programmes to help provide affordable heating, decisions on fuel poverty and how to reduce demand by better energy efficiency. It is also set to contain proposals round strengthening the UK’s renewable energy obligations and environmental targets.

“This is a real chance for Gordon Brown to make sure the energy white paper addresses the significant issues and helps the UK have a secure, sustainable and affordable energy programme.

“In another move, supplier RWE npower is set to ask the Government today for clarity over plans to support clean coal technology. The energy company has said that its proposed plant would produce 22 percent less CO2 than conventional power stations, but suppliers have said that the development of ‘clean coal’ power stations will not take place without higher electricity prices and heavy subsidy. As these power plants could dramatically cut carbon emissions, they would be welcome, provided they don’t increase prices for consumers or impact on fuel poverty at a time when energy prices are still at record highs.”

30th April 2007 - Customers finally see energy prices fall

Two of the ‘big six’ energy suppliers today implemented cuts to their gas and electricity prices, bringing substantial savings to over 12 million customers.

Powergen, the UK’s second largest supplier, reduced gas prices by 16% and electricity by 5%, cutting £92 off an average household bill. Also, from today, npower customers will benefit from reduced standard rates, saving approximately £141 annually. Its 6 million customers will see bills cut by 16% for gas and an average of 3% for electricity.

Karen Darby, founder of SimplySwitch.com comments: “These price cuts are good news for customers, but it’s a pity they only come into effect after most people have turned off their heating.

“While the recent battle between energy companies has resulted in better deals for the consumer, energy prices still have a long way to fall before customers can recoup the extra amounts they’ve been paying over the last three years.

“From January 2004 to January this year, prices have increased by an average of 80% for gas and 52% for electricity. These recent cuts are a step in the right direction, but don’t go far enough. Customers are still paying more than they were a year ago, despite a cut in wholesale costs.

“Energy bills are falling but the gap between the cheapest and most expensive tariffs is higher than ever before – households could easily save up to £200 a year by switching.

“Scottish Power and EDF Energy have come under increased pressure in recent weeks to follow the other major providers and cut bills. If they plan to leave prices where they are they are making a huge mistake as more than 600,000 households switched gas and electricity suppliers in January and February alone. The message to energy companies should be loud and clear: switching suppliers is now so simple that people are no longer willing to put up with high prices or poor customer service.”

How do the suppliers compare? Average dual fuel bills in London:

Energy provider	Average annual bill
npower	£800.66
Southern Electric	£824.93
Powergen	£835.44
British Gas	£852.93
Scottish Power	£917.00
EDF Energy	£943.38

Source: SimplySwitch.com. Based on monthly direct debit payment and a usage of 20,500kwh for gas and 3,300kwh for electricity in the London area.

30th April 2007 - EDF Energy has announced that it is cutting its gas prices

From 15th June 2007, EDF Energy customers will see their bills cut by 10.2% for gas, cutting £63 from an average dual fuel bill. Electricity bills remain unchanged.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “This price cut from EDF Energy is long overdue. After months of waiting, the energy company has announced a price cut during an April heatwave and that its customers won’t benefit from until the summer.

“EDF Energy has said that it is not reducing its electricity prices, claiming it had smaller rises compared with its competitors. Research from SimplySwitch.com shows, that in the period from January 2004 to January this year, EDF Energy increased its electricity prices by an average of 46%, while Scottish Power increased its electricity bills by 41%. The average increase across the ‘big six’ suppliers for the same period was 52%. As many of the energy company’s customers are electricity only, they will see no benefit from this price cut.

“EDF Energy is the fifth major supplier to reduce its bills. British Gas has cut its prices twice so far this year and Scottish Power is yet to announce a price cut. EDF Energy and Scottish Power have come under fire from both Ofgem and Energywatch for failing to lower prices following substantial cuts in wholesale energy costs.

“Energy bills are falling and there are even greater savings to be made by switching suppliers. Despite all the price cuts, there remains a large gap between the cheapest and most expensive tariffs.”

For a free energy price check, please call SimplySwitch.com free on 0800 781 1212

Standard tariffs - how the suppliers compare - dual fuel

Energy provider	Dual fuel now	Dual fuel before price cuts
npower	£821.66	£944.00
SSE	£824.93	£906.00
Powergen	£835.44	£915.00
British Gas	£852.93	£1,024.00
EDF Energy	£882.53	£978.00
Scottish Power	£917.00	£917.00

Source: SimplySwitch.com Based on monthly direct debit payment and a usage of 20,500kwh for gas and 3,300kwh for electricity in the London area. Figures updated 30th April 2007

30th April 2007 - Scottish Power cuts prices

From 15th June 2007, Scottish Power customers will see their bills cut by up to 16.5% for gas and up to 5.5% for electricity.

Scottish Power is the last of the ‘big six’ suppliers to announce a price cut.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments: “After substantial cuts to wholesale prices and criticism from Ofgem and Energywatch, Scottish Power has finally followed its competitors and cut prices.

Now is the time to switch

“Research carried out for SimplySwitch.com found that consumers are more likely to switch suppliers when bills are rising (62%) than when bills are falling (35%).

“Switching not only reduces household bills, but also helps boost competition and ultimately drives down prices. For the vast majority of customers, there are no penalties for leaving an energy company. Now that all the suppliers have announced a cut to their standard tariffs, it’s a level playing field – there’s never been a better time to switch.

“There are many confusing messages out there, with each supplier making their own claims about why their deal is the best. This latest announcement from Scottish Power is a prime example of this – the headline price reductions might look tempting, but these will vary by region. The only way to be 100% certain that you are on the best deal is by switching with an independent, Energywatch accredited source.

Standard versus online prices

“Consumers shouldn’t be swayed by energy companies’ much-publicised ‘standard tariff’ price cuts. The real price war is online and consumers will save a great deal more money switching to an online tariff. Over 50% of UK households are now hooked up to broadband. Managing your bills online is extremely easy and it could save you hundreds of pounds.

“If you don’t wish to go down the online route, remember that, even though some tariffs are set to drop, as long as you remain with your original gas or electricity supplier, you are paying more than is necessary. As the current price war comes to a head, hopes of large-scale price cuts are fading fast. However, we do expect more cuts later in the year when energy companies will, once again, battle it out to grab the headlines.

The result of the price war

“While the recent price changes have resulted in better deals for the consumer, energy prices still have long way to fall before customers can recover the extra amount they have had to pay in the last three years. Since January 2004, gas prices had risen by over 80% and electricity prices by over 50%. So far, none of the energy suppliers has reduced prices by anywhere near the amount that they raised them in the preceding 12 months, nor has anyone reduced prices in line with the drop in wholesale costs. These recent price drops only go a small way towards redressing the balance.”

23rd April 2007 - Scottish Power and EDF Energy under pressure to cut bills

Scottish Power and EDF Energy have come under pressure to cut bills after regulator Ofgem said their prices were lagging behind rival operators. Following an energy price war that began in February, Ofgem said the average customer could save up to £140 a year by switching from Scottish Power and £122 a year by leaving EDF Energy.

Karen Darby, founder of SimplySwitch.com, the price comparison and switching service, comments:

“We’ve been expecting price cuts from both EDF Energy and Scottish Power for several weeks now. If they plan to leave prices where they are, and trade off consumer apathy to switching, they really are making a huge mistake. All the other major suppliers have announced significant price cuts. If Scottish Power and EDF don’t do the same, they risk a mass customer desertion.

“Switching energy companies has never been simpler. With rival providers’ prices falling, households could benefit massively by searching out the best deals.

“More than 600,000 households switched gas and electricity suppliers in January and February alone and, following a series of price rises last year, British Gas lost more than million customers. The message to energy companies should be loud and clear: switching suppliers is now so simple that people are no longer willing to put up with high prices or poor customer service.”

How do the suppliers compare? Average dual fuel bills in London:

Energy provider	Average annual bill
npower	£800.66
Southern Electric	£824.93
Powergen	£835.44
British Gas	£852.93
Scottish Power	£917.00
EDF Energy	£943.38

Source: SimplySwitch.com. Based on monthly direct debit payment and a usage of 20,500kwh for gas and 3,300kwh for electricity in the London area.

20th April 2007 - Surge in British Gas complaints

British Gas has seen customer complaints more than double since last year, according to Energywatch. From October 2006 to March 2007, the firm had 21,427 complaints, most of which were from customers disputing their bills.

Karen Darby, founder of the price comparison service, SimplySwitch.com, commented: “This level of customer dissatisfaction is unacceptable for such a large and well-established company.

“We understand that British Gas implemented a new billing system last year, updating technology that dated back to 1985. While this will lead to more accurate billing eventually, the switchover should not have been allowed to cause this much disruption. Customers are suffering unnecessarily.

“Now that switching suppliers is so easy, people won’t stick with a provider that provides poor customer service. More than a million customers left British Gas last year, a number that will increase again unless the company is able to rectify its problems.

“Following price cuts last month, British Gas actually offers some of the best value tariffs in the UK. However, if they can’t send out accurate bills, their customers won’t feel the benefit.

“British Gas’ online tariffs are currently amongst the most competitive in the UK market. As with all online tariffs, customers take their own meter readings and enter them over the Internet, thus avoiding the problem of over-estimated bills.

“We always advise customers with Internet access to compare online tariffs. They are usually the suppliers’ cheapest deals and, because customers take their own readings, the bills are more accurate.”

Despite having just a 30% share of the electricity and gas market, British Gas gained more than 70% of the industry's complaints .

The firm with the next highest number of complaints, NPower had 2,535 complaints, or 9% of the total, followed by Scottish Power with 6% and Powergen with 5%.

Meanwhile EDF had 4% of complaints, while Scottish and Southern Energy had 1% of complaints.

11th April 2007 - Electricity customers remain highly charged

Increased competition does not mean customers get better electricity prices according to research released today by the University of Warwick.

Indeed, electricity prices have actually risen despite an increase in money-saving opportunities such as internet-based price comparison services and competition from new suppliers.

The researchers looked at prices offered by each of the domestic electricity suppliers active in the market from February 1999 to December 2006. The data was obtained from the Consumer’s Association, OFGEM and Energywatch.

Karen Darby, founder of SimplySwitch.com comments: “The report consolidates what we have said all along – there are no prizes for loyalty and customers who remain with their original electricity supplier will be paying more than they need to.

“Consumers are still reluctant to switch, despite the fact that there is a bigger variation in prices now. Of those that do switch, many still sign-up via a door-stop salesperson…… doorstop selling, or rather mis-selling, is still an issue as suppliers push their own products.

“With energy prices falling and average savings of over £200 a year available, consumers need to take the lead and compare suppliers, check with an independent source and switch to a better deal.”

10th April 2007 - Energy customers left feeling the heat

Over 10m UK households are still anxiously waiting for their energy bills to go down despite substantial reductions in wholesale energy costs.

Wholesale gas prices have fallen 60 per cent since May 2006 but, so far only two of the ‘big six’ suppliers have passed these savings on to customers. Both EDF Energy (5.5m customers) and Scottish Power (5.2m customers) are still to cut their energy prices, leaving customers significantly out of pocket.

Karen Darby, founder of SimplySwitch.com comments: “Most of the major suppliers have announced price reductions, but millions of customers are still paying over the odds.

“If you’re a customer with EDF Energy or Scottish Power, you’re paying more than you need to. If you get both gas and electricity from either of these suppliers, then it’s a double whammy.

“EDF Energy and Scottish Power are dragging their heels and, once again, it’s the poor customer who’s left suffering.

“British Gas was the first to act when it announced price cuts in February 2007 and we fully expected the other suppliers to follow suit quickly. However, over two months later, we’re still waiting for two major providers to cut their bills.

“Anyone on these tariffs has to switch. If you don't you’re telling your supplier they can charge what they like and you're happy to pay it.”

A household in London with EDF Energy could save £202 by switching to the best available tariff, while a household in Edinburgh with Scottish Power could save £172.

31st March 2007 - Capped price deals come to an end

Over the coming weeks many capped price energy deals come to end, leaving householders paying up to 51% more for their energy.

As energy bills rocketed over the last three years, most suppliers launched capped and fixed priced tariffs, designed to attract new customers and to offer protection from price increases.

However, many capped deals are about to come to an end, which means an estimated 500,000 customers will automatically be reverted to their supplier’s standard tariff. This will not only leave customers paying more than they currently pay for their energy, but also more than they need to as cheaper, alternative tariffs are available.

Karen Darby, founder of SimplySwitch.com comments: “Customers on a capped deal that comes to an end will effectively be subjected to a delayed price increase – they will automatically revert to a standard tariff and they could be left paying over £300 more a year for their energy.

“Four of the major energy suppliers have so far dropped their prices, but despite this, anyone reverted to their energy company’s standard tariff will not only be left paying more for their energy than they currently do, but they could save even more by switching to a better value deal. Consumers need to be proactive – anyone who fails to act will see a huge jump in their energy prices.

“In today’s market of falling prices, most capped deals offer poor value for money. We predict that energy prices will fall further and advise consumers to switch to the best deal currently available rather than signing up to an expensive capped product.”

Capped deals coming to an end:

Energy company	Tariff	Current average energy bill	Bill once capped deal ends	£ increase	% increase	Best available alternative
British Gas	Price Protection – April 2007	£675	£853	£178	26%	£741
Powergen	Capped to 1st April 2007	£677	£835	£158	23%	£741
Scottish Power	Capped to 31st March 2007	£605	£917	£312	51%	£741
Scottish Power	Capped NSC* to 31st March 2007	£605	£917	£312	51%	£741
Scottish Power	Capped to 1st May 2007	£679	£917	£238	35%	£741
Scottish Power	Capped NSC to May 1st 2007	£679	£917	£238	35%	£741
Scottish Power	Online Energy - Capped to 1st May 2007	£663	£917	£254	38%	£741
Scottish Power	Online Energy - Capped NSC to 1st May 2007	£663	£917	£254	38%	£741

Source: SimplySwitch.com

Based on a London post code and average consumption

Table updated 26th March 2007

*No standing charge

28th March 2007 - Energy prices are a postcode lottery

Figures out today have revealed the regional variations in energy prices.

From 30th April 2007, npower will reduce its prices by 16% for gas and an average of 3% for electricity. However, it has been revealed that while some customers will see their electricity bills cut by up to 14%, other areas will see no change.

Karen Darby, founder of price comparison and switching service, SimplySwitch.com said; "3% is the average electricity cut across the country, but there are huge regional variations. Npower, like other energy suppliers, is cashing in on its customers loyalty by only cutting prices significantly in regions where it wants to increase its market share. Customers in its host regions, Yorkshire, Northern or the Midlands, are unlikely to benefit, while other customers will see their bills drop by as much as 14% - it is a postcode lottery."

"Analysis of each of the 14 original electricity areas in the UK has shown that households in a company's host region can pay significantly more for their electricity than those on an identical tariff with the same supplier in other parts of the UK. In some cases, this difference in an annual bill is over £100.

"There are many more competitively priced electricity products available for these customers. Dual fuel is not always the best option and consumers could be better off switching to the cheapest suppliers individually for gas and electricity."

21st March 2007 - SimplySwitch.com comments on 2007 budget

Gordon Brown has announced:

- Measures to help householders take action to improve the energy efficiency of their homes and help lower their bills
- OAPs will be offered grants of £300 to £4,000 for installing insulation and central heating in their homes
- New zero-carbon homes costing up to £500,000 will pay no stamp duty
- VAT on energy saving products down to 5%

Karen Darby, CEO of SimplySwitch.com comments:

"These measures will help those most in need by reducing their bills, but will also help the UK reach its CO2 targets. I hope that the government will take steps to make these grants easy for consumers to access.

"The zero stamp duty on zero-carbon homes under £500,000 will be a boost for first time buyers and help them to get on the property ladder. It will also make energy efficiency an attractive and cost effective option.

"While a cut in VAT on energy saving products gives householders an incentive to go green, scrapping VAT on renewable energy would have had a far bigger impact, taking green energy out of the niche market and making it a mainstream product."

16th March 2007 - Prepayment meter charges

Powergen, Scottish Power and npower have been criticised by a group of MPs for back-charging nearly 750,000 customers with prepayment token meters when they ‘underpaid’ after prices went up.

Karen Darby, CEO of SimplySwitch.com comments: “This problem only exists because prepayment meters are old fashioned and outdated. When tariffs change, prepayment meters have to be updated manually with the new prices, which takes time. As prices rose several times last year, customers were left paying the old unit rates until their meters had been reset.”

A prepayment household in Manchester with British Gas for gas and Powergen for electricity would currently pay £635 a year for their gas and £400 a year for their electricity – a total of £1035.

By switching to a credit meter and paying by monthly direct debit, their energy bill would drop to £900 – a saving of £135 a year. Having a credit meter also leaves you free to switch suppliers. If this same household switched to the best available deal, they could net a total saving of £293.

Manchester household example

	Current prepayment cost	Standard credit meter cost	Best alternative dual fuel supplier
Total cost	£1035	£900	£742
Saving		£135	£293

Source: SimplySwitch.com Based on standard usage and incumbent suppliers of British Gas for gas and Powergen for electricity.

Darby concluded: “The most vulnerable households tend to have prepayment meters and they pay a premium for their energy. Customers should not be penalised as it’s the suppliers’ fault if they are slow to re-set meters.

“Whilst Powergen has said that it will replace 190,000 token meters with ‘key’ meters which can be changed quickly when there is a tariff change, we urge consumers to take the lead and ask their energy supplier to change their meter from a prepayment meter to a standard credit meter. This will not only mean lower bills, but will also leave you free to switch to the best deal available.”

5th March 2007 - British Gas announces decision not to implement a £5 late payment charge

British Gas has today announced its decision not to implement a £5 late payment charge.

The penalty for late payment was set to be introduced this month but, following a consumer backlash, British Gas has decided not to implement the charge.

Karen Darby, CEO of SimplySwitch.com said: “It’s good news that British Gas has dropped its late payment charge before it took hold. It was a brave move to introduce the penalty in the first place given they were the only energy company to do so. Consumers have shown British Gas that they weren’t happy and they have made a u-turn and dropped the charge.”

2nd March 2007 - EDF Energy online tariff becomes more widely available and British Gas announces reduction to Click Energy tariff

EDF Energy has announced that from the 1st March it will be reducing its online prices and British Gas has cut its Click Energy 2 prices, effective from 2nd March.

Previously, EDF Energy’s online tariff was available only in the Southern region but, from 1st March 2007, it will be available in ten of the 14 energy regions in the UK*.

Also, British Gas is set to cut its Click Energy 2 prices by 4% for its dual fuel gas and electricity tariff from Friday 2nd March.

Karen Darby, CEO of SimplySwitch.com comments: “Online tariffs offer consumers great value for money and many have launched in recent weeks as suppliers battle it out to be top of the price comparison tables.

“Despite the many competitively priced online deals that are now available, we’re still waiting for two of the big six energy companies to lower rates on their standard tariffs. So far only British Gas, npower, Powergen and SSE have reduced their standard prices for consumers. Until they do, consumers will be paying too much for their energy unless they switch to a better deal online.

"Consumers need to be proactive and seek out the best deal available. There are huge price differences between the various providers and we urge customers to find out how much they could save by switching."

Best online deals currently available

Energy provider	Online dual fuel
British Gas	Click Energy V2 - £741
Powergen	Energy online extra saver - £743
npower	Sign online V6 - £751

Source: SimplySwitch.com Based on an average usage household in the London area. Figures correct 01/03/07

*EDF Energy online available in the following areas: East Midlands, Eastern, Manweb, Midlands, Northern, Norweb, Scottish Hydro, Scottish Power, Southern, Yorkshire.

28th February 2007 - Scottish & Southern Energy reduces its standard tariff

Scottish & Southern Energy (SSE) has followed British Gas, npower and Powergen’s lead and cut its standard energy prices for its 7.5 million customers.

From 1st March 2007, SSE will reduce its prices by 12% for gas and from the 1st April 2007 it will also cut its electricity bills by 5%, cutting £89 off an average annual dual fuel energy bill.

Karen Darby, CEO of price comparison and switching service SimplySwitch.com comments: "SSE has followed three of the big six energy companies and announced a drop to its standard energy prices. SSE’s price announcement today will make a difference to its customers and help the energy company regain its position as one of the most competitive energy suppliers in the market.”

Price cuts so far:

Energy supplier	Percentage cut	Date effective
SSE	12% gas and 5% for electricity	1st March for gas and 1st April for electricity
Powergen	16% gas and 5% for electricity	30th April
npower	16% gas and average 3% for electricity	30th April
British Gas	7% gas and 11% for electricity	12th March

Darby continued: “Four of the ‘big six’ suppliers have cut their prices and we’re now waiting to see what happens with EDF Energy and Scottish Power. It will be interesting to see if they announce bigger price cuts and where they will come in to the market.

“We urge consumers to check their supplier - switching not only reduces household bills, but also helps boost competition and ultimately drives down prices.

“Energy companies should be forced to react more quickly and pass on the price reductions that they have been enjoying.”

After holding back longer than its competitors, SSE’s gas bills last rose by 12.2% while electricity bills rose by 9.4% on the 1st January 2007.

For more information, call SimplySwitch free on 0800 781 1212.

27th February 2007 - Powergen reduces energy bills

Powergen, the UK’s second largest energy supplier with six million customers, has said that it will reduce its energy prices from 30th April 2007.

Gas prices are set to fall by 16%, while electricity prices will fall by 5%, cutting £92 off an average household bill.

Karen Darby, CEO of SimplySwitch.com comments: “After months of falling wholesale prices, Powergen has at last followed British Gas and npower and cut its standard prices. Whilst any price cut is good news, customers have been paying through the nose for their energy while wholesale costs for suppliers have dropped by over 50%.

“Three major suppliers from the ‘big six’ have now dropped their energy prices. Our research shows that if an energy provider dropped its prices, 88% of consumers would expect their provider to do the same. Unless providers want to experience a mass exodus of customers to their competitors, we urge the remaining three providers not to wait, and pass these price cuts on to their customers now. Until they do, consumers are paying a premium for their energy at the most expensive time of the year.

“Powergen has also reduced rates on its online tariff. From today, it is one of the most competitive online tariffs currently available. However, customers in Powergen’s host regions in the East Midlands, the North West and East Anglia won’t benefit from the most competitive rates.

“Those on Powergen’s Staywarm tariff will only see their bills drop by 5% in the short term. Whilst Staywarm offers peace of mind, as energy prices are falling, customers on the tariff may find there is a more competitively priced deal available elsewhere.”

Powergen last increased its prices in August 2006 when gas bills increased by 18.4% and electricity bills increased by 9.7%, adding £140 to an average Powergen customer’s energy bill.

23rd February 2007 - Scottish Power launches a new capped rate product

Scottish Power has launched a new capped rate product.

Customers’ prices will be protected until the end of April 2008 and capped rates will fall if Scottish Power lowers its standard tariff.

Karen Darby, CEO of SimplySwitch.com comments: ”This latest capped deal from Scottish Power only represents a 5% saving on an average annual bill. There are many other more competitively priced products available, including British Gas’s Price Guarantee, which is capped until the end of May 2008.

“While it is good news that prices on this capped deal will fall when standard Scottish Power prices are cut, until they do, consumers on a Scottish Power tariff could still be left paying too much for their energy.

“Wholesale energy prices have fallen by over 50% in recent months and so far British Gas and npower have reduced their standard prices for consumers.

"Consumers need to be proactive and seek out the best deal available. There are huge price differences between the various providers and we urge customers to find out how much they could save by switching."

22nd February 2007 - British Gas's residential business announces rise in operating profit

British Gas's residential business has announced a 6% rise in operating profit to £95m for 2006.

Karen Darby, CEO of SimplySwitch.com comments: "British Gas's return to profits in the second half of 2006 was expected - wholesale energy prices have dropped by over 50% in recent months, while domestic energy prices have remained high.

"British Gas was the first energy supplier to cut prices following the drop in wholesale costs. However, as wholesale prices have been falling for some time, consumers feel that suppliers were quick to increase prices but were slow to pass on the savings.

"Energy prices rocketed by 86% for gas and 76% for electricity since January 2004. While its recently announced price-reduction is good news, consumers may feel that a cut of 17% for gas and for 11% electricity is not as generous as it could have been.

"Energy prices are falling, but consumers need to be proactive and seek out the best deal available. There are huge price differences between the various providers and we urge customers to find out how much they could save by switching."

19th February 2007 - npower reduces its standard tariff

npower has followed British Gas lead and reduced its standard energy prices.

From 30th April 2007, npower will reduce its prices by 16% for gas and an average of 3% for electricity, cutting approximately £141 off a typical annual energy bill.

Karen Darby, CEO of price comparison and switching service SimplySwitch.com comments: “npower was the first energy provider to reduce prices on its online tariff and since then others have followed suit. However, up to now, only British Gas has reduced its prices for standard customers.

“While these price reductions are welcome, as wholesale prices have halved in recent months, we would like to have seen a bigger cut, with immediate effect. Consumers have to wait more than two months before they see any benefit, while suppliers have profited from reduced wholesale prices since summer 2006.

“Even though some providers have now dropped their prices, customers need to be vigilant to make sure they are on the best deal available. Switching shows energy companies that consumers are not prepared to put up with rip off prices.

“Although npower has reduced its standard tariff, if you are an npower customer in one of its host regions of Yorkshire, Northern or the Midlands, then there will be more competitively priced electricity products available. Dual fuel is not always the best option and consumers could be better off switching to the cheapest suppliers individually for gas and electricity.”

npower last increased its prices on 1st October 2006 when gas customers saw their bills increase by 17.2% and electricity customers by 9.9%, adding £131 to an average household bill.

16th February 2007 - British Gas reduces its Click Energy gas rates

Yesterday, Powergen released two newly competitive tariffs* and today British Gas has reduced rates on its Click Energy 2 gas tariff, effective from 12th March.

Karen Darby, CEO of SimplySwitch.com comments: “The price war continues with energy companies battling it out to be top of the price comparison charts.

“npower was the first to reduce its online tariff at the end of last month and Powergen and British Gas have both reduced their online rates this week.

“Cheaper, online tariffs do benefit consumers, but so far, only British Gas has reduced its rates on its standard tariffs. Until other providers follow suit and reduce their standard rates, the majority of consumers will only benefit from lower prices by switching to a cheaper deal online.

“The energy market is very competitive and is set to become even more so over the next few months. After three years of price rise misery, consumers are beginning to benefit from the falling prices the market first saw when it was deregulated.”

*New Powergen tariffs: Energy Guarantee 2008 and Electricity Guarantee 2008, which are both guaranteed to have lower unit rates than British Gas's cash quarterly rates until 01 September 2008. Powergen also updated their new Energy Online Extra Saver and Energy Online Extra Saver tariffs to now include discounts of up to 24% in certain areas.

8th February 2007 - British Gas has said that it will reduce its domestic energy prices from next month.

Gas prices are set to fall by 17%, while electricity prices will fall by 11%.

Karen Darby, CEO of SimplySwitch.com comments: “As wholesale prices have dropped significantly, this price cut from British Gas is not before time. It is a step in the right direction and will help the many families who struggle to pay their energy bills. However, as its energy prices have rocketed by 86% for gas and 76% for electricity since January 2004, British Gas still has some way to go.

“The energy market is very competitive and the next few months are set to be very interesting. We expect the other providers from the ‘big six’ to follow suit, drop their prices and also launch more innovative and competitively priced products.

“Scottish & Southern Energy has already said that it is set to reduce its prices in the next few months and npower recently reduced its tariff for its ‘sign online’ customers – both proof of the price war yet to happen.

“After three years of price rise misery, consumers should benefit from the falling prices the market first saw when it was deregulated.”

Following the news that British Gas is set to cut its prices, our calculator has been updated with the new tariff.

31st January 2007 - Scottish & Southern Energy has said that it will cut its prices

Scottish & Southern Energy (SSE) is the latest energy company to announce it is set to cut its prices in the next few months. The energy company has written to its seven million customers, but not said by how much its prices will be reduced.

Karen Darby, CEO of price comparison and switching service SimplySwitch.com, comments: "SSE's announcement comes hot on the heels of its prices going up in January.

"British Gas was the first energy company to promise that it would reduced its prices, while npower was the first to act - its sign online tariff for new customers goes down from today.

"Following the drop in wholesale prices, this announcement by SSE is further indication that suppliers are going to slug it out to win customers. While this is great news, until prices actually fall, consumers are still paying too much for their energy.

"People need to be proactive and seek out the best deals available. Don't wait for prices to drop as the cheapest tariffs are usually only open to new customers and there are definitely more competitive deals available for those that have never switched."

31st January 2007 - npower reduces its ‘Sign online’ rates for new dual fuel

Karen Darby, CEO of price comparison and switching service SimplySwitch.com comments: "As wholesale prices have plummeted this price reduction is long overdue. Although British Gas has indicated its intention to drop its prices this year it, like the remaining energy providers from the 'big six', has yet to act.

"npower has taken the lead by reducing its sign online tariff, however it is only available to new customers - anyone on npower's standard tariff will be unable to switch to take advantage of the savings available. Also, if you are an npower customer in one of its host regions of Yorkshire, Northern or the Midlands, then the new npower sign online tariff may not be at all competitive.

"Since January 2006, gas prices have increased by 42% and electricity prices by 27%. Switching is simple and there is no disruption to supply - a price comparison service can compare the whole market to find you the best deal available.

"The price war is hotting up and it's about time as consumers have suffered years of misery. We hope this marks the turning point for getting a better deal, but, as we've always said, the cheapest tariffs are only open to new customers - consumers need to be proactive and seek out the best deal available."

17th January 2007 - 4 million switch energy supplier

Ofgem has said that more than 4 million switched their gas or electricity supplier last year, cutting their bills by around £150.

Karen Darby, CEO of price comparison and switching service SimplySwitch.com comments:

"Since January 2006, gas prices have increased by 42% and electricity prices by 27%. Switching is simple and there is no disruption to supply. As energy prices rose, so did the number of people switching to find a better deal.

“Many of those switching are savvy consumers who check their bills and switch once a year. If you are one of the many households that has never switched gas or electricity, you are with the most expensive suppliers.

“Over the last 12 months, customers have shown suppliers that they are not going to take these huge price increases lying down. Price comparison services have given transparency to the market and made it easier for consumers to find a better deal.

“As energy prices fall over the coming months, we expect more consumers to switch and take advantage of the better deals available as we have already seen in other competitive markets such as broadband. However, consumers will need to be proactive and seek out the best deal, as these are usually only open to new customers.”

20th December 2006 - New Year energy woe

Throughout 2006, households in the UK have faced substantial energy price increases. On average, bills went up by over 42% for gas and over 27% for electricity.

Scottish & Southern Energy’s latest price increase is set to take hold on the 1st January 2007. Gas bills are set to rise by 12.2% and electricity bills by 9.4%, adding over £100 to an average bill.

From the 8th January 2007, British Gas will lift its price freeze on its Click Energy tariff. Bills for those customers rise by 12.5% for gas and 9.5% for electricity. Also, over the coming months, various capped price energy tariffs come to end and customers are automatically reverted to their energy company’s standard tariff.

Karen Darby, CEO of SimplySwitch.com comments: “Wholesale gas prices may have been falling, but householders will have to seek a better deal by switching suppliers. It is not only those with SSE and British Gas that face an increase to their bills. Many households face higher bills in the New Year as their capped and fixed-price tariffs come to an end – this means they will effectively be subjected to a delayed price increase.”

Capped deals coming to an end:

Energy company	Tariff	Current average energy bill	Bill once capped deal ends	Increase - £
British Gas	Price Protection – April 2007	£754	£1,148	£394
Powergen	Capped to 1st January 2007	£741	£1,011	£270