Energy prices set to soar - but could you be paying less?
By Tony Watts - Editor - 07/12/2007
Massive rises of between 10 and 15% in the price of electricity and gas are in the pipeline for early 2008 - raising fears that there will be more winter deaths of older people.
The average fuel bill has risen by over 60% in the last four years - from £572 in 2003 to £924 today. Yet the Winter Fuel Payments (£200 per household from the age of 60, or £300 if one person in the household is 80 or over) remain the same.
Households supplied by British Gas through their Market Tracker energy plan have just learned that gas costs will increase by 13%, while electricity costs are to rise by 15% - with immediate effect. Another of the major suppliers, nPower, is reported to be considering a similar increase in its tracker product in January.
These increases have prompted speculation that all energy customers, not just those on the Tracker plan, may face price rises in the New Year. Two other major suppliers, EDF and E.ON, are believed to be considering price rises of up to 10 per cent, possibly as early as January.
The predicted rises have raised the spectre of people on low incomes turning down their heating to save money. Yet, by not heating their home adequately older people could be putting their health at risk with cold-related illnesses such as pneumonia. There were 22,300 excess winter deaths of older people last year – a relatively mild year.
Campaigners say that this situation could be improved if those entitled to assistance claimed their full entitlements. Many older people are unaware that in addition to fuel payments, they may be able to claim help with energy efficiency, insulation and heating improvements - and some men aged 60-65 may also be missing out on the Winter Fuel Payment because it isn’t paid automatically to them as they aren’t yet receiving their State Pension.
Gordon Lishman, Director General of Age Concern, says: “Older people shouldn’t have to worry about health versus wealth. We would urge any older person who is finding it difficult to pay their fuel bills to contact their nearest Age Concern for a free benefits check.”
Currently in the UK almost one in three older people live in homes with inadequate heating or insulation and more than 1 in 4 people living in fuel poverty are over 70 years old
Age Concern is urging people to get in touch to find out what they can claim this winter. You can call their free information line on 0800 00 99 66. The Winter Fuels Payments helpline is 0845 915 15 15.
The price increases coincide with Energywatch's latest report on energy suppliers, which claims that many are exploiting the poorest people in the UK by forcing them to use prepayment meters.
According to the consumer group's research, many people on low-incomes are paying an average of £195 extra each year, compared to the best available deals.
Major variations in the process being charged by different suppliers – not just between themselves but between different payment schemes – does open the door to making significant savings. “Tracker products” for instance, are designed to track wholesale energy prices, aimed at a type of consumer who does not mind taking a chance on bills going up, as well as down, on a far more frequent basis.
To check whether there are cheaper plans available, uSwitch.com offers a free comparison service. If you do decide to switch supplier, they will carry out all the necessary paperwork for you.
To find out more, click onto the link below.