The wait is almost over for SSE customers, who will finally feel the benefit of the Government’s levy reductions that were announced almost four months ago. The price cut on the 24th March – the last to be made – will take £38 a year off the average SSE dual fuel energy bill, bringing it down from £1,304 to £1,266 a year. Customers will receive a further £12 rebate which will be made to bills later this year. However, the move still leaves SSE customers paying £55 or 5% more for their energy than in January 2013.
The Government’s changes to the environmental and social levies, paid through household energy bills, have left many consumers with a sour taste in their mouths, according to research by Uswitch.com. Just 6% feel that the way energy companies have passed on the reductions is fair. Two thirds of energy customers (66%) are disappointed by the level of reduction to their bill and three quarters (75%) expect energy prices to go up again this year.
Ann Robinson, Director of Consumer Policy at Uswitch.com, says: “It’s definitely a case of ‘better late than never’ for SSE customers. Any relief from ever-increasing energy bills has to be a good thing, but having to wait up to three months longer than other customers to feel the benefit of the levy cuts will no doubt rankle.
“Almost three quarters of homes have gone without heating at some point this winter to keep energy costs down and over a third say that cutting back on energy has affected their quality of life or their health. While the price cut is welcome, consumers can reduce their energy bill further by switching to a better deal. There is an almost £300 difference between the cheapest and most expensive tariff on the market, which means consumers could stand to save a great deal more if they’re currently on an old-fashioned and expensive standard tariff.”
Average big six energy bills:
Source: Uswitch.com
Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. *£1 difference due to rounding.
Energy best buy table:
Source: Uswitch.com
Based on a medium usage customer using 3,200 kWh of electricity and 13,500 kWh of gas paying by direct debit (Spark requires this in advance) with bill sizes averaged across all regions.
Alexa Wheeler
Phone: 0207 1484 661
Email: alexa.wheeler@uswitch.com
Twitter: @uswitchPR
Research referred to below was conducted with the Uswitch.com Consumer Opinion Panel amongst 1,021 respondents in January 2014.
Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions.
In response to: ‘Thinking of the reductions that suppliers have made as a result of Government changes to levies on energy bills, which of the following do you agree with….?’
In response to: ‘The big six energy suppliers have all recently said that they will now hold their prices steady into 2015, unless wholesale prices or other costs change substantially. Which of the following do you expect:’ 75% said ‘Prices will go up again this year’.
In response to: ‘Have you gone without heating this winter to keep your energy costs down?’ 50% said ‘occasionally’, 20% said ‘regularly’, 3% said ‘always’. This adds up to 73% who went without heating at some point this winter.
In response to: ‘Do you think you’re achieving the right balance this winter between keeping your home warm and managing costs?’ 36% said ‘No – the cutbacks I’m making are affecting my quality of life and/or health.’
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Uswitch is the UK’s top comparison website for home services switching. Launched in September 2000, we help consumers save money on their gas, electricity, broadband, mobile, TV, and financial services products and get more of what matters to them. Last year we saved consumers over £373 million on their energy bills alone.
Uswitch is part of RVU, a new business that also owns Money.co.uk and Bankrate.
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