£500 energy bills landing on doormats

Published 15th Apr 2010

Record energy bills of more than £500 have been landing on their doormats in recent days after the coldest winter in a generation.



Roughly half of Britain's 26 million households pay their gas and electricity bills once a quarter, with energy companies starting to send out the January to March statements this week.

Though energy companies did cut bills a touch last year the reductions were not enough to offset the coldest winter for 31 years, which forced millions of consumers to turn up the thermostat on their heating.

According to the price comparison site Energyhelpline, the average household dual fuel bill (gas and electricity) will be £532.70 for the last three months, up £57 on the record £475 for the same period last year.

Mark Todd, director at the company, said: "It will be a real slap in the face for customers when they open their bills.

"This is a winter whammy which will hit many vulnerable people and ordinary families who had no choice but to turn up their heating because of the freezing weather.

"People are now facing up to the chilling reality of a combination of the coldest winter in 31 years and high retail fuel costs."

His company estimates that the average household used an extra 18 per cent more energy this winter, compared with last winter, as a result of turning up their thermostats. This effect has completely wiped out the benefit of energy companies trimming their bills.

The average dual fuel energy bill, on an annual basis, is £1,230, according to Ofgem, the industry regulator. This is 6 per cent cheaper than a year ago, when they hit a record of £1,303, but considerably higher than the £912 average of two years ago.

Campaigners have argued that over the 18 months, though bills have fallen by 6 per cent on average, wholesale energy prices – the price the suppliers have to pay for their supply – have fallen by 50 per cent and that consumers have not enjoyed nearly enough of this benefit.

During the winter many consumer groups warned that vulnerable people, especially pensioners were resorting to wearing extra jumpers and using hot water bottles rather than risk turning up their thermostats and risk a higher bill. British Gas, in association with Help the Aged, even published a leaflet for its elderly customers, which included the following advice: "Thermal underwear, thick tights, long socks and warm slippers can help beat the chill. If you are sitting down, a shawl and a blanket will provide a lot of warmth."

Since the cold snap in January all of the six major suppliers have trimmed their bills once again, by about a further 7 per cent. But all – with the exception of British Gas – waited until the end of March until their cuts took effect. British Gas's reduction came into force in February.

Energyhelpline director Mark Todd said: "Politicians have been making false promises about changing the energy market for too long and consumers are now living with the harsh reality of their hollow pledges.

"There is a lot of big talk about big changes and a big society but all the voters are seeing are big bills.

"In a privatised energy market there is little governments can do and they need to be honest and tell people that the only way to reduce their bills is by taking personal responsibility to find the best deals."

Source: ' Telegraph '

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