Credit Crunch Busters

In past years it has been the frosty weather that has brought about chills, but this year gas and electricity bills are sending shivers down peoples’ spines.

Since last January, annual gas bills have risen by an average of 50%, or equivalently, an average increase of around £277 per year to £834, based on homes using medium consumption of 20,500kwh per annum.

That’s only if you’re fortunate to be with a company that offers mid range prices. British Gas and Scottish Power have both opted for a more inflated 55% increase in their costs, now currently charging £882 and £912 respectively; more than any of the other gas suppliers.

However, British Gas has vowed to drop their prices to a more modest £794 in mid February, which would make them, by contrast, the cheapest supplier in the UK.

If it’s stability you’re more interested in, then EDF Energy are perhaps more suited to your price plan, as their average annual costs only increased by a comparatively mere 39%.

N-Power currently occupy the most cost efficient spot, although their £797 average bill isn’t far off matching British Gas’s initiative of reducing their tariff by 10%.

However, Scottish Power have announced that they will also cut their energy bills by 10% in the Spring, with other suppliers expected to do the same, although British Gas are the only firm to commit to this as of yet.

Electricity prices have been of equal concern to many residents, with the average household bill coming to a less than economical £459 for 2008, representing annual percentage increases in the late 30’s.

With these daunting facts in figures in mind, we would like to know how you’ve managed to cope so far this winter. Whether you’ve had to wrap up warm both inside and out, or whether you have decided to take a risk and feel the crunch in order to avoid the frost bite, we went in search of your opinions.

So, here are the best responses from our Facebook group and Forum, as posted by you – the reader:

Sharon Leese, Teeside
“My rent has gone up for next year by nearly £100. It’s costing us over £500 a month next year to rent a one bedroom flat. It’s all inclusive but has a limit to how much energy we use, so if we go over we pay extra anyway. My first flat a couple years ago was only £350 maximum per month; and that was a 2 bedroom spacious flat!”

Luke Beddows, York
“Our bills are included too but in these winter months we’re being told to save up more money as we could have more to pay come the end of our tenancy, because we’ve been trying to keep warm. My room is the worst because it has a wooden floor so I have to use a heater as well, which apparently uses up a lot of energy.”

Charlotte Toop, Dorset
“From last year, our rent went up - only by £5, however, as to keep up with the rising energy prices. The bills for my house are included in the rent; everyone pays £30 a month for the energy bills. This, however, to me seems like a lot of money for gas and electricity. My house pays £180 a month for energy. Over an 11 month contract that is nearly £2000 pounds.This seems like a lot of money, especially as we are all students; so in summer the house is empty as everyone goes back home.”

Carol Potts, Lincolnshire
“I have noticed that the oil companies do not give as much credit as before and that you have to pay quite a lot up front. As with the electrity, I am more frugal with switching lights and stuff off when they’re not in use because of the credit crunch and also the carbon foot print malarky.”

Statistics courtesy of the BBC. For full details on individual supplier price plans, tariff increases and past figures, follow this link:
BBC News: British Gas in 10% price cut >>>

Tags: companies, credit crunch, energy prices, inflation