Unravelit News - latest market news affecting your household bills 2012-02-08T10:13:00Z Copyright (c) 2006 Unravelit.com. All Rights Reserved http://www.unravelit.com/favicon.ico Unravelit News press@unravelit.com 2012-02-08T10:13:00Z

Water company debts have rocketed by 130% in the last decade with at least 5.7 million households in the red, another 700k at least 4 years behind with payments. A new wave of inflation-busting water price rises from April is set to tip even more families over the edge. Figures show that, in the last financial year, customers owed an eye-watering ?1.635bn to their supplier, up from ?705million in 1998/99 The situation is so bad that water firms were forced to kiss goodbye to ?328m last year, a ?168m increase on the previous 12 months. But it is customers, not the companies, who pick up the tab as bad debts add around ?15 a year to the average households bill. Since 1999 firms have been banned from cutting people off, regardless of how much they owe. Industry regulator Ofwat says 80% of those reporting themselves as being in water debt were customers living in rented properties.Customers who are at least a year behind with payments owe an average of ?402 each, latest figures show. A postcode lottery will see many households hit with even bigger increases because, unlike with energy providers, households are lumbered with the firm that supplies water in their area. If you are in the Severn Trent area you will pay about ?326 a year from April. But households in South West Waters region will splash out around ?217 more, with its average bill a hefty ?543. The level of bad debt in the water industry is approximately three times higher than that of the energy sector, despite water and sewerage bills being around a third of the cost of average energy bills. But while customers may feel powerless, there are different ways to reduce their bill or get help with payments. The first rule if youre struggling is to get in touch with your supplier as soon as possible. Firms offer flexible payment options such as weekly or monthly plans.

2012-02-07T09:48:00Z

Tens of thousands of households will be able to bulk buy cheap gas and electricity by clubbing together under a new scheme by Which? The consumer group is collecting signatures from people who are fed up with high energy bills, which average ?1,260 a year. Which? will then invite the UKs energy suppliers to take part in a so-called reverse auction, in which participants try to outbid each other with lower prices. The supplier that commits to the lowest energy price will win the petitions signatories as customers. The campaign, which is called The Big Switch, is that the more people sign up to the list, the lower the prices will be. The campaign which was welcomed by ministers works along the same principles of group buying sites such as Groupon. It is estimated that up to ?250 could be knocked off every household bill as result of its campaign, which launches today.  

2012-02-03T12:09:00Z

A recent survey has found Energy companies should copy supermarkets if they want to keep their customers, who are increasingly looking for additional incentives such as discount vouchers, bundle packages and loyalty schemes A poll of 2,000 people found supermarkets came top in terms of quality service with 55 per cent of the vote. Energy suppliers came last, with 2 per cent, just behind banks and telecoms providers. Of those responsible for paying their energy bill, 58 per cent were either unhappy or indifferent about the level of service provided by suppliers and the costs of their total bills. Despite that, almost two thirds had not switched providers in the last year. However, around half in the 18-24 age bracket had. If that trend continues, energy providers are going to need to focus on their services to regain a loyal customers base said Daryn Edgar, of Avanade, the service provider that commissioned the poll. Apart from price, when asked about which value-adds might make them switch providers, discount vouchers (32 per cent), bundle packages (31 per cent) and loyalty schemes (26 per cent) came out on top. One in seven (15 per cent) said a more personal service could tempt them to switch providers.

2012-01-24T09:55:00Z

Everyone knows that energy prices are high right now. Some people, have come to accept this. However, what people will not accept is when their bills are too high because of errors. Apparently, millions of energy consumers all over the UK have paid extra money due to errors on their bills. This is something that is seen at all the big six energy firms. Reports go on to show that complaints about errors on bills hit four million last year. These mistakes on bills range from inaccurate meter readings to simply being overcharged. Needless to say, this has confused and frustrated many energy users. So what do these errors really mean? Well, it means that normal people are being overcharged monthly. A lot of times this leaves them with credit with the energy firm they are signed up with. Sometimes, there is no such credit. A survey by Which? now suggests that overcharged consumers are missing out on as much as ?4 million a year in compensation. In other cases, it is not about consumers being charged too much. In fact, there have been a number of cases where the energy firms charge consumers too little. Well, that?s nice right? After all, who does not want a cheaper bill. However, that is not the way it works out. When these consumers get their next bill, they are confronted with a large payment for gas and electricity. These consumers are being punished for paying the money that energy firms told them to pay. Complaints keep coming in, but nothing is done. Not only that, but most firms are even failing to give consumers advice on how to pursue them. In the end, most customers are just left high and dry. The group found out that nine in every ten people who were unhappy with the way a complaint was dealt with did not then pursue it with the energy ombudsman.

2012-01-20T10:10:00Z

Last weeks cut in energy prices have prompted consumers to question the logic of fixing their energy prices. These cuts need to be put in perpective. The typical bill for a standard tariff before cuts was £1,350, after it?s only dropped to £1,320 ? this is very far from reversing the mammoth price hikes last year ? and hundreds of pounds more expensive than the cheapest fixes that have been around for the last six months. So most who fixed should be sitting pretty. Whether fixing is right for you is is about your attitude to risk, rather than guessing games.   So even if prices do fall again, yes you may feel youve made the wrong decision to fix gas and electric prices when you did, but it's like insurance - we all take out cover for our holidays, but arent annoyed when we dont fall ill and use the policy we took out! You bought it just in case, for peace of mind. So it?s done its job. Energy price fixes are exactly the same - its a level of protection against future price increases, last year prices went up on average by 15 percent, so the simple question is - could you afford another increase of that amount?

2012-01-19T06:01:00Z

Households are still paying substantially more for their gas and electricity than they were last summer, despite many of the big six energy firms announcing price cuts last week. Analysis of what is effectively the shaving, rather than slashing, of costs shows that many still face double digit rises when compared with what they paid last summer before the huge price rises that came into force late last year. Not only were those rises up to 19%, but they applied to both gas and electricity, whereas the cuts this week only apply to one fuel per company. While welcome, critics suggest the cuts are little more than a PR stunt that will have a negligible affect on bills. The energy firms admit themselves that households will only save around £20 or £30 a year from the price falls. What's more, SSE customers' price drop won't come into force for another two and a half months. The reductions are a result of falling wholesale prices ? the price power firms pay for the gas and electricity they sell to us.

2012-01-17T12:19:00Z

Theres nothing like an energy price cut to give you a much needed warm glow in the cold winter months. And thanks to the mild winter, thus far, the gas and electricity providers have been coming forward one by one over the past two weeks to announce they are cutting prices, culminating in the annoucement on January 16th of a cut in electricity by E.ON and Scottish Power becoming the final member of the big six to announce cuts as it reduces gas prices by five per cent. However, when the dust settles on the headlines, the fact is the cust announced in the last week represent about 15 per cent of the value of the increases announced by the same firms in the autumn. Each of the big six increased gas prices by between 15 and 20 per cent between August and November and four of the six raised the cost of electricity by over ten per cent, with just npower at 7.2 per cent and EDF at 4.5 per cent lower. Customers are left without any meaningful competition from the price cuts as all of the tariff cuts from the main six suppliers are reduced by between £26 and £39 pounds annually. Whilst any decrease is welcome it pales into insignificance against the average rise of ?220 for a household on a dual fuel tariff as a result of the autumn hike in prices. Assuming this winter would be as harsh as those in the previous two years, the providers overstocked on energy and the wholesale price of gas has now plummeted by as much as 25 per cent.   Taking advantage of this, two of the smaller energy companies Ovo and The Co-operative, decided to slash their prices in a bid to win over some of the competition. First Co-operative Energy revealed in December it would be reducing the price of gas and electricity by around three per cent on February 1st, a move which would save the average customer £35 a year. Then independent energy company Ovo announced on January 6th it was cutting the price of its dual fuel gas and electricity tariff by five per cent with immediate effect.

2012-01-16T11:10:00Z

43% of people are worried they cant afford their next fuel bill and one in two say energy bills will put a strain on their finances this year, according to new figures released today from Citizens Advice at the start of its Big Energy Week which will help people save money on their fuel bills. Citizens Advice, Chief Executive, Gillian Guy said: We know hikes in prices have put extra pressure on peoples budgets at a time when money is already tight. Day in day out our Bureaux are helping people who cant afford their fuel bills. Big Energy Week is helping people save money on their bills by encouraging them to: Contact your supplier to check you are you are on the best  tariff and payment method for you.  Monthly direct debit is on average £100 cheaper per year than paying by cash or cheque. Visit an accredited comparison site to see if you could get your energy cheaper elsewhere. You may be able to save up to £200 off your annual bill by shopping around for a different supplier, particularly if you have never changed energy firm. Insulate the walls and the loft of your home and you could save on average around £120 per year.  All major gas and electricity suppliers are giving away free or discounted insulation to any household, not just their own customers. Ask if youre eligible so you dont miss out.  That goes for heating oil customers too. Check you are not missing out on any benefits or tax credits that could up your income; your local Citizens Advice Bureaux can help you with this. Using less energy could save you money, just by doing simple things like turning off lights and switching appliances off at the wall. Turning your thermostat down 1C alone could cut your heating bill by £60 on average.

2011-12-08T11:58:00Z

With energy companies now offering a wide range of deals, its easy to become confused about whats on offer. To help you decide which is best for you, use one of the Internet price comparison services accredited to the Consumer Focus Confidence Code. Then you can compare the different offerings from domestic gas and electricity suppliers and to find out how much you could save by switching to a new supplier. These independent price comparison sites (i.e. Unravelit) help thousands of households every month to compare prices and switch to better deals. They offer a comprehensive service that compares your current suppliers tariffs and usage with those of all suppliers. They help you find the best deal and provide you with a free and easy-to-use switching service. They also give detailed information on each tariff, including gas and electricity unit prices and any discounts. The Consumer Focus Confidence Code is designed to help make the switching process easier, more reliable and provide reassurance for for you the consumer.

2011-12-08T11:17:00Z

The average British shower is estimated to last around eight minutes A new survey has revealed that Britons spend far longer in the shower than previously thought, which is a surprising victory for hygiene and a regrettable defeat for the environment. This means we use almost the same amount of energy and water as the average bath. The survey monitored 100 families over a period of 10 days, recording 2,600 showers, or 2.6 per family per day, in total. The technology used in the study calculated a shower lasting eight minutes to use approximately 62 litres of hot water. Despite using more hot water than previous studies suggested, the average shower still compares favourably to the average bath, which uses around 80 litres of hot water. Unfortunately, the data revealed an alarming problem: power showers use twice the energy and water as the average bath. The Research and Development wing of Unilever carried out the study. Dr Hilde Hendrickx, a behavioural scientist working at the firm, said We know that 95% of the associated greenhouse gas emissions are related to people using our products because they have to use hot water. The study ought to be reviewed with interest by UK households, who spend around £416 a year on daily eight-minute showers. Spending £918 for the same time, families with power showers ought to be even more interested.

2011-12-05T04:44:00Z

There's winter chill in the air and Christmas is just around the corner - which means plenty of cold days when you'll need the house warm all the time.Don't ruin Christmas by worrying about sky high fuel bills though - act now to make sure they don't cost as much as you think. 1. Switch energy supplier. You've heard it a hundred times over already, but have you actually done it? If you've never made the switch before, or you haven't checked for a few years you could stand to save over £389 for 10 minutes work! 2. Insulate. Does your home have cavity wall or loft insulation? If not you could be losing hundreds of pounds of heat each year. Everyone, regardless of their age or whether or not they are on benefits, if their house is suitable can get cavity wall or loft insulation for free from EDF or just look online to see if theres a local alternative. So there's no reason not to take advantage. 3. DIY Insulation. Even small changes can make a difference, so be sure to use draft excluders and brushes to plug gaps under doors, from your postbox or cat flap and between windows. Invest in some thermal curtains or even a radiator booster which costs just 30p a year to run - they'll make a big difference to the warmth of your home without you needing to turn the thermostat up. 4. Think green. Even if saving the environment isn't high on your agenda, thinking green will help you dramatically cut the cost of your bills. Be sure to turn lights out when you leave a room, don't leave appliances on standby and take more showers instead of baths. Try washing your clothes at 30C rather than 40C, and only boil as much water as you need when you put the kettle on. 5. Get an energy saving monitor. If that isn't enough, an energy saving monitor will really open your eyes to how much energy we all waste. These clever little gadgets will not only show you how much your using, but tell you exactly how much it's costing you too. And there's nothing better that seeing your money disappearing to get you being more energy efficient.

2011-12-01T10:04:00Z

Energy market regulator Ofgem said today that its proposals to simplify domestic energy tariffs had been shown in trials to make price comparisons much easier. Its research suggested 85 per cent of people would be able to identify the cheapest tariff in less than half a minute and that most would start switching under its plans to make suppliers compete on unit charges with the regulator itself setting the transmission and distribution, or standing charge, element. Ofgem made that claim as it published further details of its retail market review. It said suppliers would be pushed to implement them as soon as possible. As well as simplifying tariffs and making bills easier to understand, Ofgem is proposing enforceable standards of supplier conduct. It has also recommended that vulnerable customers are given better protection and more help. That part though must be decided by government. Ofgem said it was "particularly keen" to discuss those protections with government. The regulator surveyed 2000 people online, plus another 200 face to face. With most people quickly finding the cheapest tariff, 70 per cent said they would start switching as a result, according to Ofgem. Three of the big six suppliers have already started to simplify tariffs. Most smaller suppliers already have simple tariff structures, some of which are similar to those which the regulator is now proposing.

2011-11-30T04:32:00Z

Savvy employees are saving energy - and money - by charging up their phones and gadgets at work, costing employers up to £1.5bn. Rising energy prices mean savvy Brits are charging up their phones and other gadgets at work and saving over £110 a year each on their household energy bills, according to new research. When it's the boss' pocket and not our own, it seems that even simple energy efficiency measures go out of the window With energy prices having risen by £224 or 21% in the last year, consumers looking to save on their household energy bills are doing so at the expense of their employers. These 'cheeky chargers' are collectively costing their employers over £1.5billion a year, says the new research  Almost half (49%) charge up phones or gadgets at work, with two in ten (20%) doing so deliberately to save money on their household bills. But it's not just deliberate energy usage that is costing employers. While consumers may be becoming more energy efficient at home, their 'green' attitudes don't extend to the workplace and this relaxed attitude towards wasting energy and resources at work is costing British businesses almost £1.4billion a year. When added to the cost of 'cheeky charging', businesses are potentially paying out almost £3 billion a year more than they have to on their energy bills. Even though workers take simple energy-saving steps at home, many don't extend this to the workplace. 35% leave lights on at work more than they do at home and more than four in ten (41%) leave devices plugged in when they're not in use at work, compared to just over a quarter (28%) at home. ?However, when it's the boss' pocket and not our own, it seems that even simple energy efficiency measures go out of the window. Even small measures such as turning off lights when you're not in the room and not leaving devices on standby can all help cut energy bills, whether you're at work or at home. "And not only will it cut costs, but it will help the environment too, making it a win-win for everyone." Almost two in ten people (19%) admit that they aren't worried about wasting energy or resources at work because it's not their pocket that is affected! However, despite the huge costs to their businesses employers seem reluctant to crack down on wastage, with 26% turning a blind eye to employees wasting energy or charging own appliances whilst at work.

2011-11-30T03:44:00Z

Energy customers who switch to npower's Go Fix 8 plan will now receive ?100 in Love2Shop vouchers, which can be exchanged in 85 retailers. They are currently offering £50 of vouchers per fuel (£100 dual fuel)   Shops involved in the deal where the vouchers can be redeemed include Homebase, Argos, River Island and Boots. Customers should expect to receive their vouchers six weeks after their second fuel has been taken over by the energy firm, though £50 will be rewarded if only one fuel is switched. Go Fix is an online tariff requiring payment by direct debit, and guarantees no price increases until 03/02/2013

2011-11-30T03:39:00Z

Scottish Power are currently offering up to £80 cash back for a duel fuel switch (£40 for a single fuel) this is on top of some already very competitive tariffs, including fixed price options. So if your thinking about switching then do it today while the offer is still available.

2011-11-28T06:16:00Z

The rising cost of energy bills means the number of households living in fuel poverty in the UK has risen to 6.9 million. With another cold winter predicted, recent research found that 87% of people are worried about the cost of their energy bills, a 26% rise on last year. Almost nine in ten households - equivalent to 23 million - will ration their energy use to save on bills this year, 4 million or 16% more than last year. In an already difficult financial climate many families will face significant financial strain this winter: As we brace ourselves for another cold winter, the vast majority of British households are facing the reality of substantially higher energy prices. Two price hikes from all the big six suppliers will put a significant strain on family finances and many will be forced to ration their energy use in order to keep a lid on bills. Almost 7 million households are now in fuel poverty, but the alarming fact is that many more will have to go without heating to keep bills down. Switching providers can take up to 8 weeks, so I  would urge consumers to act now to reduce their bills, a saving of up to 300 can be made for 10 minutes work online. We must all start thinking about and managing our energy usage and there are two key steps to this - use less energy by making your home more energy efficient and pay less for the energy you do use. By improving energy efficiency and ensuring they are on the most competitive plan for them, hopefully households can keep their winter fuel bills manageable without resorting to drastic and potentially dangerous measures.

2011-11-25T09:29:00Z

British Gas has revealed plans to simplify its gas and electricity tariffs after admitting the industry had lost the trust of consumers. The energy provider intends to offer just two tariffs, variable and fixed, and also make its energy bills more transparent by breaking down all the costs that make up a bill. The managing director of the firm, Phil Bentley, also told the BBC that the practice of offering cheap deals as loss leaders to persuade customers to switch to British Gas would be stopped. "It's not right if we are charging honest customers more [to fund these deals]," he said, having admitted the firm 'had not made it easy for customers'. Gas and electricity providers have come under increasing fire from customers and consumer groups in recent months, standing accused of trying to baffle consumers with a vast array of deals. Suspicion and anger has also been growing over the profits that energy firms have been making, while households struggle to find the money to pay rising bills. Only last month, industry regulator Ofgem put forward a raft of proposals aimed at forcing providers to introduce simple tariffs, clearer bills and annual statements. While British Gas has now broken cover, e.on announced earlier this week it would be reviewing its tariffs, bills and selling practices over the course of the next six months. Any move by the Big Six suppliers to make their dealings with customers more transparent and to simplify tariffs is welcome, but we would like to see the cost of energy start to come down as well. The major providers have been badly bruised and chastened by the recent public reaction and British Gas managing director Phil Bentley admitting his company has not "made it easy for customers" is a welcome show of humility and honesty," he added. "However, British Gas needs to look at its pricing policies and also at its discounting structures which many customers say to us are just too complex. "Most people switch on price alone and unless these two issues are addressed the company may struggle to attract new business. "While people want simplicity and transparency in their dealings with energy companies, they tend to want savings more. "Households can save up to a quarter of the annual bill by switching, which for a few minutes work has got to be worth considering in these austere times."

2011-11-24T03:24:00Z

Watchdog Consumer Focus said there had been 70 new tariffs launched this year by energy companies, bringing the total to about 400. It said that simplifying tariffs would not have a direct effect on prices, but will at least make it easiers for consumers to understand the bills. Energy is a simple product, it should also be a simple market. Reducing the number and complexity of tariffs will not bring prices down by itself, but it will help people understand their energy costs and get the best deal available," said Adam Scorer, of Consumer Focus. Energy company E.On said its own review would take six months to complete, and would look at tariffs, bills, customer support and how it sells its products. Scottish and Southern Energy said in October that it was reducing the number of tariffs it offered by 20%. Ofgem has said that it wants to see one standard tariff per fuel per payment option - such as by direct debit, prepayment meter, or cash or cheque. It said fixed-term contracts would also be allowed, where the price would be unchanged or track a particular index. More details on its plans will be published in the next couple of weeks. As well as calling for simpler tariffs following its review, the regulator said that it had found evidence the so-called big six energy firms had increased their prices in response to rising costs more quickly than they had lowered them in response to costs falling. The suppliers, it said, should face more competition.

2011-11-24T05:13:00Z

Recent price rises on gas and electricity bills this summer mean that suppliers are making £125 of profit from the typical standard tariff, duel fuel customer each year - up from £15 in June, according to recent figures from regulator Ofgem. Energy suppliers say that wholesale gas and electricity price rises have forced them to raise bills, and that continued high wholesale costs will bring profit margins lower again through next year.However, figures from Ofgem suggest bills have risen by far more than wholesale prices. The regulator said wholesale costs will on average £605 a year per customer from October, compared to £570 in June. EDF Energy was the last of the 'big six' energy firms to announce a price increase earlier this year. The firm put up its gas prices by 15.4 per cent and electricity prices by 4.5 per cent from 10 November. EDF has joined npower, E.ON, Scottish and Southern Energy, British Gas and Scottish Power in raising prices over the summer.There are no guarantees that prices will not rise further but it is fair to assume prices will stay at these levels for a period. There is pressure on suppliers following news that the regulator Ofgem is to investigate energy pricing and none will be quick to push yet more rises before the winter period when most energy is used. It means now is a good time to switch supplier and be sure that you will stay on the best tariff for a good while.Should you switch?Switching energy bills can save you up to £310 a year, according to unravelit.com. However, this level of saving is only likely if you've never switched provider and are not signed up to a duel fuel, online tariff paying by direct debit. If you already do this then the saving will be much smaller, but still worthwhile.The comparison process is very complex, there are over 400 tariffs on the market.Some tariffs are based on one fixed price for a unit of energy - the type of tariff Ofgem is trying to force suppliers to offer - while others are based on a two tier system, charging customers more for the first proportion of energy they use and reducing the rate for energy used after that. One rate tariffs charge all customers the same rate, while two tier tariffs favour high energy users who effectively get a discount on using more energy. Small users are penalised by the higher introductory rate.To fix or not to fix? Consumers pay a premium to fix their bills with a fixed price tariff. Tariffs of this type will fix the rate you pay for a period, typically 18 months, but you pay slightly more than the cheapest deals to buy that security. There is no guarantee fixing will be best for the long-term but it gives certainty over bills as household finances are squeezed. Online plans (which are not fixed) are still the most competitively priced, and if you have never switched, choosing one of these will save you the most money. Price comparison services, like the one here at unravelit.com allow you to specify which type of tariff you want.

2011-11-18T05:10:00Z

The UK energy Secretary Chris Huhne has said that households across the country should look to shop around and switch energy suppliers to find a better deal for their gas and electricity. The energy prices rises in 2011 from all of the big 6 energy suppliers have been criticised by many as over the top in a time of rising inflation and when the energy suppliers themselves keep announcing higher profits. Recently a summit was held to with the big 6 and the prime minister David Cameron to try and set a road map to work harder to try and help bring down consumers bills. The prime minister has said that the UK government needs to work faster and harder to bring down energy bills. We should be checking to see whether or not were on the cheapest tariff, Mr Huhne said after the summit. We should be switching if were not on the cheapest tariff and taking the opportunity ahead of this winter to really make sure that were insulating so that we can save money. Four of the big six suppliers, British gas, Scottish Power, Npower and EDF Energy have all said that they will not put their energy prices up again this year. But that is a marketing smoke screen as all energy suppliers will look ahead to the winter and forward buy up to 75% of the energy demand in the summer time, so they have already worked out what they need, bought a good percentage of it and put up their prices. With the average energy bill well over the ?1000 mark it is a great endorsement for comparison sites which help the consumer to shop around to save money to be at the forefront of trying to drive the prime ministers message of you have the right to switch and save on your energy bills.