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Domestic fuel prices start falling
By Hannah Ricci
Suspicions of informal price fixing have prompted consumer groups to call for an investigation into energy prices.
The news comes as more energy providers scramble to win back customers with yet more price cuts, following the excessive hikes last year.
Recently, EDF Energy and Scottish Power were the latest suppliers to cave in to mounting industry pressure, although the cuts were relatively meagre.
The wholesale cost of gas and electricity has tumbled in the last 12 months, yet providers have not passed these savings onto to customers. "We need reductions of at least £200 or £300 off the average annual bill for gas and electricity prices to accurately reflect wholesale prices," said Geoff Slaughter, energy product manager at price comparison site, uSwitch.com.
EDF Energy cut its gas prices by 10.2%, but its electricity prices will remain the same.
Scottish Power followed by cutting its prices by 16.5% for gas and 6% for electricity for direct debit customers, but those who pay by cash or cheque will see only a 5% cut in gas prices and nothing in electricity.
Both providers announced the price cuts on the same day. Customers will have to wait seven weeks for changes to come into effect on 15 June.
According to Slaughter, however, the good news is that prices are falling, and customers need to take this opportunity to switch providers.
"The story certainly isn't over. I expect more price cuts before the year is out," he added. "Everyone needs to review their current tariff, because the chances are you can get a better deal."
Scottish and Southern Energy currently offer the lowest duel fuel tariff, at an average £824 for direct debit customers and £875 for those who pay by cash or cheque.
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