Customers left "disappointed" by small fuel price cuts

31/03/2009

Price cuts levied by Britain's largest energy firms recently will lead to cost savings of around £41 a year, according to a financial website.

In a report released yesterday, uSwitch said that the 3.2 per cent reduction from the latest round of reductions is dwarfed by last year's overall 42 per cent increase to bills.

This means that just ten per cent of the rise has been wiped out so far in 2009.

The recent increases and decreases to energy bills have been blamed by providers on fluctuations on the wholesale energy markets where they buy their fuel to sell to home customers.

Commenting on the new research, EuroDebt director Kevin Still said: "Having offered energy switching Services since January 2009, we have already seen that most of our clients can make meaningful savings significantly in excess of the £41 quoted, so if you haven't looked at switching before it is worth using the comparison tools that are freely available.

"Releasing upwards of £20 per month on energy bills can have a meaningful impact for those in financial difficulty, those with fixed incomes or even those with reducing incomes. It is essential when looking to switch that any arrears with the current provider are cleared. It is worth checking before starting the process."

Tom Lyon, energy expert at uSwitch.com, added: "[Customers] should move to dual fuel, pay by direct debit and sign up to an online plan to enjoy lower prices straight away."

uSwitch tracked the average annual household energy bill as rising from £912 in January 2008 to £1,293 in January 2009.

The typical yearly cost is now thought to be down to £1,252.

Analysis from the site also suggests that there is a "slim hope" of a fresh round of cuts later in the year - although it also warned that there have been "hints" from providers that prices could still rise.

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

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