Will the Russian crisis affect our bills?
January 29, 2009 at 3:48 am
Wholesale prices of gas and oil have dropped in the last twelve months but consumers have not yet seen the benefit in their bills. Suppliers have explained the time delay between prices dropping and the savings being passed on to the householder but, just as we could do with some good news, fears are rising that European gas prices could be affected by the dispute between Russia and the Ukraine.
Although only twelve percent of the UK’s gas supply comes from Russia, it could mean that the predicted drop in prices are slower in coming and may also be far less sizeable than predicted.
Those concerned about the Russian situation may be considering fixed price tariffs but the experts advise against this move, saying that wholesale prices would have to go up by thirty to forty percent before companies would increase domestic prices. Fixed rate tariff customers would therefore be paying a considerable premium for peace of mind.
Ann Robinson of uSwitch.com expects prices to be reduced by around a quarter this year, although this is unlikely to come in one fell swoop. She predicts that the decrease this spring will be around ten percent and added that the industry is well aware that the Government and watchdogs are keeping an eye on them. Provided the Russian situation is resolved soon, she predicts that further reductions will be made this summer.
For now, consumers are advised to shop around and consider a dual fuel deal, as well as paying by direct debit and keeping track of their meter readings.
Scottish Power slashes fixed price deal
January 23, 2009 at 2:15 am
In this economic climate of doom and gloom, it will come as a pleasant surprise to some consumers that Scottish Power has slashed its fixed price deal by a figure of ten per cent. The marketing manager at the company, Gerard Magee, revealed that the cut was typical of the company’s commitment to offering “price savings” at all possible opportunities. The utilities manager at moneysupermarket.com, Scott Byrom, has described the appeal of Scottish Power’s PriceSure deal, which is now the “cheapest dual fuel fixed tariff available on the market”.
Anyone who wants the security of knowing the price of their bills for the next year should seriously consider taking advantage of this good deal, particularly since, according to Byrom, there is usually “a hefty premium to pay for this peace of mind”. Despite expressing excitement at Scottish Power’s move to cut its fixed price deal, the utilities manager was keen to warn consumers that fixed price tariffs usually charge termination fees, which can be hefty.
At this time of financial uncertainty, consumers should make sure that they are keeping a close eye on the current deals available on the market and should check that their tariff is working well for them given their geographical location, usage patterns, and general circumstances. Meanwhile, the energy expert at uSwitch.com has stated that the move from Scottish Power is the “biggest hint we’ve had so far of the level of energy price cuts consumers can expect” during the early stages of this year.
Northern Ireland gas prices down
January 14, 2009 at 2:15 pm
Residents of Northern Ireland have not had it easy lately in terms of coping with the deteriorating economic situation. Gas prices have rocketed by about 50% over the past year, a phenomenal figure which has left many people struggling to pay their energy bills, something which is more important than ever now that the winter season has arrived.
However, a ray of hope could be on the horizon, as the leader of SDLP, Mark Durkan, has stated that the prices could finally start going down early in the New Year. Indeed, they may start going down even earlier. According to the BBC, the prices could go down by as much as 20%, with electricity prices also set to drop by about 10%. This may not seem too significant when looking at the overall rises seen throughout the year, but it will at least provide some level of relief.
The news came just before the SDLP held an emergency meeting to consider ways to combat the current financial situation. Durkan said that he is “expecting the energy companies to announce significant price reductions”. The two companies involved are Phoenix Gas and Northern Ireland Electricity, and their decision to reduce prices has been welcomed. However, Durkan also said that the news would only bring “partial relief” to people who had been badly hit by the price hikes throughout the year.
It is a shame that it has taken power companies so long to get around to lowering the prices. Gas is so essential to so many people, especially at this time of year, that the companies won’t have made many friends by waiting so long to put their prices down, particularly when the price of oil has been dropping for some time now.
