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17% price hike in gas/electric begins. Fight it here.

(3 Posts)
Monkeytrousers Fri 25-Jul-08 21:06:14

Emergency extra Martin's Money Tip....
Energy supplier hikes prices 22%... others will follow
Last chance to cap and avoid price rises.

Today (Friday), EDF Energy became the first of the big six suppliers to hike energy bills, increasing prices by 22% for gas and 17% for electricity, effective immediately. Energy suppliers usually operate a herd mentality; when one increases its price the others follow within the next five or six weeks.

Fight back against utility companies.

This is likely to be just the first round of price rises. Currently the average energy bill is roughly £1,000; this takes it to £1,200 for EDF customers. By the end Jan next year, the average for all suppliers is predicted to be as high as £1,400 to £1,600, due to the wholesale price of gas (the price suppliers pay) being so high.

To beat the price hikes, CAP NOW!

A capped rate is like a fixed mortgage; you lock into a set rate for a year or two, giving you security that your price won't rise. Yet the cheapest caps are disappearing fast, as suppliers raise their costs in line with their other prices. The EDF announcement accelerates this.

While you still may be able to secure an OK cap in the next few weeks, the earlier you act, i.e. today or tomorrow, the better chance of capping cheaper, as they're going by the day. Plus it will take a couple of months to switch you over, so the sooner you start the better.
How to find the cheapest cap.

Use a comparison service; most separate out capped tariffs so simply choose the cheapest. Plus by going through these special links it's also possible to get extra cashback on top. My Top Pick Comparison Service Energyhelpline* pays £15 cashback per switch. Or for dual fuel: Moneysupermarket* pays £30 cashback for dual fuel and uSwitch* gives a £40 crate of wine per switch (don't go direct). Full Info: Cheap Gas & Elec guide

If you've already capped after my past warnings - hurrah - you needn't do anything.

Is it ALWAYS best to cap?

If prices do rise 60%, as predicted, then everyone should cap. Yet even if this were to be the last round of price rises for a year, most people would still save by capping. The cheapest caps are roughly 10% - 15% more expensive than the cheapest non-capped tariffs. As this round of price rises is likely to be about 20%, most will still save. And even if, in the unlikely event, you do end up paying a few percentage points more, capping is effectively an insurance policy against further rises.

Monkeytrousers Fri 25-Jul-08 21:07:32

barbamama Mon 28-Jul-08 20:59:49

We live in a house that has never been switched - still on original suppliers. I have gone via Martin's website, used all 5 comparison sites to get this:

most money saved = £562 BUT non-capped
most money saved CAPPED = £198

that cap is only until aug 2009 i.e one year. Surely then I am better off with the non-capped £562 for a that year even if they do go up as predicted. Aren't I ???

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