Consumers Advised To Take Steps Against Energy Bill Rises

Consumers Advised To Take Steps Against Energy Bill Rises
Britons need to be wary of the impact that energy price
rises can have on their finances, it has been stated.

According to TheEnergyShop, the increases actioned by the
country's six major gas and electricity providers - British
Gas, npower, Scottish and Southern Energy, EDF Energy,
ScottishPower and E.ON - over the first few months of 2008
have seen the average utilities bill rise by 14 per cent.

With such costs equating to an 128 pound increase to the
typical household's bill, it was claimed that demands for
payment for the 2008 winter quarter which are set to arrive
in the weeks to come could place particular monetary strain
on consumers. With the price comparison site pointing out
that as the three-month period accounts for between 35 and
40 per cent of consumers' year-long energy usage, it was
suggested that the forthcoming bill might cause increased
strain. Meanwhile, a further round of tariff increases are
predicted to take place later this year.

Following on from increased energy bills - particularly in
the midst of current economic uncertainties - it may be
possible that consumers find that they struggle even more
to manage other sources of constraint on their spending.
Such areas may well include loans repayments, mortgage
costs and affording the cost of the weekly grocery shop.

Although all of the country's major energy providers have
increased both the cost of their electricity and gas during
the first few months of 2008, those who are customers with
npower might find themselves under the most monetary
pressure. The supplier opted to put up its gas and
electricity costs by 19 and 13.2 per cent respectively. In
addition, the firm was also the first of the big six to put
up its prices, choosing to make such changes effective from
January 5th.

Commenting on the figures, Joe Malinowski, founder of
TheEnergyShop, said: "Consumers are much more likely to pay
attention to the rising cost of their mortgage than they
are to their energy bill. But because energy bills are
often estimated and payment amounts adjusted infrequently,
consumers can be storing up trouble down the line, which
they may not be able to afford. It's best to be prepared."

As such, Britons were urged to take steps to reduce the
financial impact that their utility bills will place on
them. One way Mr Malinowski advised that this could be done
is for those consumers who are charged on the basis an
estimated meter reading to make a note of their actual
energy consumption, send this to their supplier and request
a revised bill. In addition, consumers who have concerns
about their ability to pay their bills were recommended to
get in touch with their provider as soon as possible. It
was pointed out that although inaccuracies with statements
impacts upon "a very small proportion of customers", those
who are affected by this can develop debt difficulties.

The director of TheEnergyShop also asserted that companies
are legally required to offer assistance and alternative
methods of payment to those who are experiencing problems
with making repayments. Meanwhile, it was stated that
changing to a monthly direct debit payment method and
moving to an online tariff could save consumers about 200
pounds per year.

Britons who are worried about their ability to manage
higher energy costs and other expenses they will incur over
2008 might wish to consider getting a debt consolidation
loan. By doing so, borrowers may be able to meet the cost
of utility bills, in addition to expenses such as
outstanding credit and store card repayments, other loans
and mortgage arrears, quickly and effectively. And by being
left with a single low-cost payment to make each month,
consumers could find that they have more disposable income.
Getting a consolidation loan might also be of particular
help to many people after a recent Abbey Insurance survey
showed 48 per cent of adults currently have money worries.
The study also showed that about 500,000 Brits spend up to
25 hours a week fretting about their finances.

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