Gas and electricity Updated:
Customers have been warned to expect energy price hikes of between 5 – 10% in the new year due to the increasing costs of wholesale pricing.
The warning comes from energyhelpline, which estimates that fuel bills will, on average, rise by between 5 – 10% in January.
"We know from experience, when one supplier announces price rises, others follow and in the last three years these have come in the summer and autumn. It may be mere coincidence, but there are distinct advantages of introducing a price rise before the cold weather hits as the increased rates kick in as gas and electricity usage rises."
Cash-strapped consumers worried about what further energy price hikes will mean to their household budgets can save money now by switching to a fixed price tariff, giving them peace of mind that their bills won't rise anytime soon.
There are a number of competitive fixed price energy deals on the market at the moment, some of which see prices fixed until 2016.
If the estimated 5-10% price rises per year are factored in, a household could save £892 by fixing their energy tariff for three years (see the table below for details).
Save money by fixing for three years:
Typical Bill (based on current OFGEM averages and assuming 7.5% price increase pa)
Average Bill Npower Price Fix to September 2016
Source: energyhelpline.com, 8 Aug 2013 All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300
Save up to £331 by switching your Gas and Electricity today
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