Q&A: Gas price cuts & you

Should I switch my tariff to British Gas?

The price reduction leaves British Gas’ online tariff, WebSaver1, as the cheapest on the market at £1059.

But with the remaining energy suppliers expected to follow British Gas’ lead and make cuts to their bills soon, consumer groups recommend that billpayers sit tight and wait to see how their provider reacts before they rush to switch. The energy market is expected to see a flurry of activity with other providers cutting prices between 10 and 15 per cent.

Can I expect my energy bills to fall again this year?

Despite the recent price drop advisers say the overall trend in household energy prices is up. The move today is a cautious one, and makes little dent in the huge rises seen in household energy bills this year.

Rather than rely purely on price cuts to make energy bills more manageable, Ann Robinson, director of consumer policy at uSwitch.com, says consumers should help themselves now by making sure they are paying the lowest possible price for their energy and learning to use less of it.

How can I make sure I pay the lowest bill possible?

There are a variety of savings to be made to ensure that consumers pay the lowest bill possible and comparison site moneysupermarket.com says that if consumers are proactive they can cut the cost of their energy consumption by up to £350 on average.

Paying by direct debit, signing onto an online plan and moving to dual fuel are all easy ways to cut costs. Households have also been advised not to lock into capped and fixed price deals now, but wait for prices for gas and electricity come down.

I’ve fixed my rate can I switch out?

Some households on expensive fixed rates have fixed either their supplier or their tariff to save money. This means that those customers are probably better off staying with that provider. Many fixed tariffs charge penalties of up to £55 if customers want to leave the plan before it expires. ”Those on expensive fixed tariffs could make big savings, but there are a few hefty cancellation charges about so you need to be mindful of the total cost,” says Will Marples at uSwitch.com, the comparison site.

British Gas, Eon and ScottishPower all penalise customers who cancel guaranteed price plans but the charges vary between providers and tariffs. The average is around £30 each for gas and electricity.

What are the best rates available now?

Sourced by www.moneysupermarket.com 22.01.2009

Are more cuts on the way?

Some industry commentators are suggesting that British Gas has put forward its modest decrease as an opening gambit. It’s waiting to see how the other suppliers respond between now and March, and then it’ll make a final decision on how much it’s actually going to reduce rates.