Cold snap to increase energy bills by at least 10%

The “Big Freeze” hitting the UK the past weeks could increase energy bills by at least 10 percent annually, says moneysupermarket.com. According to the web site, now could be the best time to check out comparison sites to find the best energy provider that gives the best tariff.

Normally, the majority of consumers use around 40 percent of their annual energy consumption over the winter months.

An average household spends around £1,232 a year on a standard tariff. The amount is paid quarterly either through cash or cheque. The same household is now expected to face a whopping £493 energy bill next month.

Scott Byrom, utilities manager at moneysupermarket.com said, “This recent cold snap couldn’t have come at a worse time for many bill payers, especially for the five million people currently living in fuel poverty. It is crucial Brits who are worried about their energy bills as a result of the ‘Big Freeze’ speak to their provider about the assistance and social tariffs on offer. For those UK customers still paying for their gas and electricity by pre-payment meter (PPM) there is good news out today; to cut PPM debt-blocking, customers who have an energy debt of up to £200 can now swap to a better tariff, a vast improvement on the previous limit of £100, and a really positive step towards helping those who are paying over the odds for their energy just because of their payment method.”

Based on the web site’s computation, the average household energy consumption had doubled since the first snowfall in December. This translates to an additional 10 percent, or £123, to the cost of their annual bill for the last three weeks alone.

Byrom said the majority of households across the country have increased their energy consumption over the past few weeks to cope with the snow, especially heating use, “and with the expensive Christmas period only just behind us the fact that a quarterly energy bill could be landing on the doorstep in the next few weeks for between £500 and £600 means there will be many cash strapped Brits struggling to find the money to cover it. As the freeze is set to continue with forecasts of snow in areas of the UK for this week there may be further cause for concern for anyone who has not got the means to pay such an expensive bill at the worst time of the year.”

He said that the 10 percent rise in energy bills is just a conservative estimate. He said he expects many household to expect a larger increase to their bills. Consumers should be aware, however, that switching energy supplier really is easy, easier than you might think – see our article Switch energy supplier how easy is it? for more info and it really can save you money.

“I would advise shopping around to ensure you are on the correct tariff for your usage and region. Moving online to a dual fuel direct debit deal is the easiest way to make savings, and will ensure your hard earned pennies don’t go to waste,” Byrom said,