Save money by checking out fixed-term energy deals

15 May 2012 15:13:48

Energy costs are expected to rise again this winter.

Energy bills are one of the expenses that consumers are most worried about at the moment, with households enduring a series of price hikes in recent years. And it seems the pain is not yet over, as energy giant Centrica recently warned that "the trend for retail energy costs ... remains upward" as a result of rising wholesale gas prices.

This will undoubtedly be unwelcome news for customers, many of whom are already struggling to make ends meet and had been heartened by recent tariff cuts by all of the major suppliers. However, all is not doom and gloom, as E.ON has just pledged not to impose any price rises on its residential customers this year. On Monday (May 14th), chief executive Dr Tony Cocker said: "I want every family in the UK to know that we will always do our best to be fair and act in the best interests of our customers." He added that the announcement will enable consumers to "plan for the future and properly control their energy costs".

However, the E.ON chief admitted that an overall trend of rising wholesale prices is expected, echoing Centrica's statement on May 11th. The British Gas owner claimed that UK wholesale gas costs "are around 15% higher for next winter than last and non-commodity costs ... are expected to add a further £50 to the cost of supplying the average household this year".

In light of these predictions, consumers may want to consider one of E.ON's domestic tariffs so that they have certainty over their energy bills. However, E.ON is by no means the only supplier that should be taken into consideration and the best thing to do is to compare energy deals online to see if you would benefit from switching.

Fixed-term deals are certainly worth looking into in order to protect against future price rises. Richard Lloyd, executive director of consumer group Which?, explained: "We have already seen one supplier warn that price increases could be on the way, so now is a good time for customers to look at fixed-term deals which offer a bit more security." And in response to E.ON's promise of no residential prices rises, he added: "Anything that gives people more certainty can only be a good thing when household budgets are stretched."

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