Debt reduction hampered by rise in energy prices

Britons with debt problems could face continuing financial difficulties over the coming year due to increasing energy costs.

The last of the ‘big six’ energy suppliers in the UK raised their prices meaning that the vast majority of Britons are now facing significantly higher energy bills in comparison to six months ago.While the other five have raised their rates over the last few months, taking advantage of the winter temperatures, EDF made a promise to their customers that they wouldn’t follow suit until March at the earliest. They announced this week that their rates will go up on 2nd March.Households on its standard tariff will see their gas bills rise by an average of 6.5 per cent, while electricity customers will face a rise of 7.5 per cent meaning customers will pay an extra £72.50 a year.Martin Lawrence, managing director of energy sourcing and customer supply at EDF Energy, said: “Although we regret the need to raise prices, we held out for longer than all of the other major suppliers and we hope our Winter Price Freeze Guarantee shows that not all energy companies are the same.“We have delayed this increase until the end of a particularly difficult winter, which included the coldest December in 100 years.”At the end of last year npower were the first of the ‘big six’ to raise their prices. Scottish & Southern, British Gas and Scottish Power followed suit soon after, before E.ON also raised their prices in January.According to the price comparison website moneysupermarket.com, customers might want to consider changing to fixed tariffs if they are on standard plans. Although more expensive than the cheapest tariffs offered by each supplier, they are now much cheaper than the standard plans: the cheapest average fixed bill is now from Scottish & Southern and costs £914.81 per annum which is £193.61 cheaper than the average standard tariff.
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Posted in: energy,hampered,Prices,reduction