Switch now to save on energy bills

Published on Wednesday 28 July 2010 21:38

HOUSEHOLDS in the south of Scotland could save over £360 a year by moving from their incumbent supplier to the best deal currently on the market, new figures show.

As evidence builds of a likely rise in energy prices later this year, new analysis shows the extent to which Scottish households can save money by changing supplier. The average south Scotland household buying its electricity from Scottish Power currently pays 502 a year, based on typical usage levels, according to Moneysupermarket.com.

And those on gas tariffs with Scottish Gas, the incumbent supplier in the area, pay an average of 744, giving a total energy cost of 1,246 a year. Yet the cheapest online tariff available to homes in the south of Scotland, from npower, gives an annual bill of 883, based on average consumption in the region, giving a potential saving of 363.

A similar comparison of the incumbent suppliers in the north of Scotland, Scottish & Southern and Scottish Gas, shows that households could save up to 299 by switching to the current online deal from npower. The cheapest Scottish Gas deal on the market is the Websaver 8 tariff, giving average bills of 898 a year.

The analysis followed a warning from Scottish Gas that higher wholesale prices could force energy bills up in the coming months, even as it reported a 98 per cent profit for the first half of the year.

And Chris Huhne, the energy and climate change minister, this week said electricity and gas prices could rise 33 and 18 per cent respectively over the coming years to pay for investment in renewable technology.

Scott Byrom, head of utilities at Moneysupermarket, said: "Some providers have already removed their best fixed-rate deals, and I expect other leading deals for new customers to be withdrawn soon, so if you are looking to avoid the impact of increases you should fix now."