New year energy debt warning

On January 1st 2007 Scottish and Southern Energy will increase its gas prices 12.2 per cent and up its electricity costs 9.4 per cent.

Eight days later British Gas is set to increase its online Click Energy tariff, moving it from the cheapest deal on the market to the most expensive.

“With cold winter months still to come, it looks like some people will bear a double brunt financially as the cost of keeping a house warm increases in the new year,” commented Paul Schofield, head of utilities at Moneysupermarket.com.

“It is disgraceful that companies are announcing price hikes in the summer months and sneaking them in when the weather is at its coldest.”

The price rises will see the average annual bill for a customer of Scottish and Southern rise to £927.20 a year, while the average online charge for British Gas will rise to £959.49, Moneysupermarket calculates.

“With no certainty of energy prices going down in 2007, people with internet access should consider switching to an online tariff,” Mr Schofield said, urging the internet as a good way for debt management.

“When compared to standard tariffs our research shows online deals are particularly competitive and the potential to save £177 per year should not be overlooked.”

track