Brits Shown To Hold Concerns About Rising Energy Costs
It is important that consumers take steps to ensure the heat is not turned up on their finances, it has been reported.
According to uSwitch, millions of Britons have found that energy bills are taking up a greater slice of their income following a wave of price hikes by the country’s ‘big six’ utilities providers earlier this year. But with two of these firms recently introducing their second increase for the year, the price comparison website has warned that monetary pressures could become even more pronounced.
Since EDF Energy and British Gas introduced increases to their rates at the beginning of August, it was reported that their customers have faced an average 23 per cent rise in costs - the equivalent of an additional 20 pounds per month. Now, such consumers have typical annual energy costs of 1,270 pounds. However, uSwitch reported that with the remainder of the country’s leading energy providers set to hike up rates for a second time in 2008 it was suggested that the average energy bill could stand at 1,467 pounds by the time the year is out.
Following on from increased difficulties in meeting the cost of utility bills, consumers may find their capacity to manage other spending commitments comes under further strain. This might mean that making payments on personal loans, credit cards and mortgages becomes even more of a challenge.
Research from the firm also revealed that 47 per cent of single income families state that paying energy bills is a difficult task, with 30 per cent of joint income households reporting that they struggle to do so.
Ann Robinson, director of consumer policy at uSwitch, said: “With energy bills continuing to burn a hole in households’ dwindling pockets, consumers need to take steps to minimise their energy usage and reduce the amount they pay. Sourcing the cheapest provider is one means of holding on to the pennies but adopting more energy efficient measures will also help. This is not just a short-term spike. Consumers cannot afford to ignore this - they need to take action now to stand any chance of limiting the impact of higher prices.”
She added that although news that the government will introduce a 150 pound rebate for those families on child benefits could help some households to manage the cost of energy bills “for others, it will be a drop in the ocean”. As such, Ms Robinson urged for consumers to be proactive in getting to grips with the impact of potential higher costs. One way this could be done, the uSwitch director stated, could be to opt for an online energy plan. She advised such a tariff is “a good option for those who want to pay a lower price now”.
People who have concerns about their ability to manage their money in the face of increasing energy bills might wish to consider applying for a debt consolidation loan. In taking out this kind of loan, borrowers may find that they are able to merge numerous areas of financial constraint into a single low-cost monthly repayment. This could prove to be of particular assistance after a recent study by thinkproperty showed that 95 per cent of people are worried about increasing energy prices, with 85 per cent holding concerns about how they will manage rising fuel costs.
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