Gas and electricity firms are raising prices and consumers are to blame for not shopping around, we wrote. But you responded by telling us how hard it is to switch.
Our story saying consumers should shoulder some of the blame for high gas and electricity bills - because they fail to switch to cheaper suppliers when prices are hiked - certainly hit a nerve.
We wrote that only one in five households switch. So when, as is happening now, one supplier raises prices, the others follow suit because they know they’re more or less guaranteed your continued custom and there’s no incentive to lower prices to win back their customers.
Scottish and Southern Energy (SSE) is the latest supplier to announce price hikes.
The energy firm, one of the “big six” which dominate the UK market, has announced an 18 per cent rise in the price of gas and 11 per cent for electricity from 14 September, a move that will see the average annual dual fuel bill rise by £171 annually.
SSE, which owns Swalec, Southern Electric, Scottish Hydro and Atlantic, is now the third supplier to announce energy price rises this summer.
British Gas announced price rises earlier this month, and Scottish Power was the first of the UK’s big six energy firms to announce increased costs in June.
Energy firms blame rising wholesale pricesThe energy firms have blamed an increase in the cost of wholesale gas – the amount they pay for energy – for customer price hikes.
But this has been called into question by Mike O’Connor, chief executive of Consumer Focus.
He said: “Suppliers point to rising wholesale costs. Yet, although wholesale prices have risen recently, they remain around a third lower than their 2008 peak.”
Your switching complaintsFollowing our article saying householders need to switch to encourage more competition among energy firms to keep prices low, many of you took to our comment board describing how hard it was to switch suppliers.
One reader named Powergirl said her account was in credit when she switched but it took four months for EDF to pay her the money owed.
And Firework said: “My experience changing from npower to Scottish Power was a nightmare. npower would not release my account and kept blaming SP, although it was not SP's fault. It took nine months to get away from the incompetence of wrong billing, rude support people, the list is endless.”
Change on the wayEnergy regulator Ofgem has acknowledged that energy firms need to make it easier for consumers to shop around and is consulting with the industry over reforms.
In the meantime, it’s up to householders to work with the current system to secure the best deals on gas and electricity prices before summer is over.
Benefit of fixed tariffsTo avoid price rises, consumers can opt for a fixed or capped energy tariff. These deals set the unit price (also known as the kilowatt hour or kWh price) of your gas and electricity for a certain period of time, although with capped tariffs, if prices fall, you’ll pay less.
Lisa Greenfield, energy analyst at Confused.com says anyone worried about price rises should act now.
“If you’re concerned about the rising cost of energy, we recommend opting for a fixing or capped tariff which will give you security against any further hikes. We’d also advise paying by direct debit and managing your account online.”
How do best buy tables work?Energy users are split into low, average and high. Best buy tables work out the average UK bill based on a medium user. Energy regulator Ofgem defines a medium user as using 16,500 units of gas and 3,300 units of electricity a year.
Many people don’t realise that the price you pay for gas and electricity depends which region of the UK you live in. This is due to the costs of distribution, Greenfield explains.
“For an energy supplier, it costs more to distribute gas and energy if you live in north Scotland or south Wales than if you live in London for example.
“So you will be charged different amounts for your gas and electricity. But what Ofgem do by defining average use, is allow comparison sites like Confused.com to work out an average UK bill which makes it easier for consumers to compare prices at a glance.
“So while no-one will fit the average user, these prices act as a guide.”
Not just the “big six”While the “big six” energy firms hit the headlines, there are a number of smaller energy firms in the UK, supplying gas and electricity, such as Utility Warehouse (also known as Telecom Plus), OVO Energy and Utilita.
Topics: Shrink your bills Tags: Gas & electricity, Cutting costs Confused Topics Get motoring Property market Deal with debt Plan for the future Smarter spending Get wealthy Travel & holidays Shrink your bills Your consumer rights Reduce your energy bills 50% of Confused.com customers save at least £210 when they change tariffs Compare the whole UK energy market for the best deals Fill in one short form, and we do all the legwork for youWhy not switch today!
Compare Gas & Electricity Naphtalia Loderick
Naphtalia Loderick reports on all things personal finance at Confused.com. She started out on a weekly newspaper, via a national news agency and a stint in the fun but ‘not as glamorous as it appears on screen’ world of TV at the BBC researching consumer films for The One Show. Latest articles from this author 
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