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Fuel Poverty News

Energy price cuts 'barely scratch the surface' for those in fuel poverty - 18 Mar 2009

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Recent cuts to household energy prices "barely scratch the surface" when it comes to the increased number of people in the UK living in fuel poverty, according to uSwitch.

The consumer group asserted that while average household energy bills are set to fall by 4.3 per cent in the coming months, these decreases wipe out only 15 per cent of the total price hikes made last year.

While the average annual household energy bill in January 2008 was £912, it is estimated this will now total £1,237 - after a £56 decrease.

"To cash-strapped consumers this 4.3 per cent - or £56 dip in energy prices - will seem like a drop in the ocean, especially when compared with last year's 42 per cent or £381 price hike," said Ann Robinson, director of consumer policy at uSwitch.

However, she added that consumers who sign up to pay their energy bills by direct debit and switch to a cheaper supplier could cut up to £350 off their energy bill if they shop around for the best deal.

Earlier this week, npower, which has 6.8 million customers, cut its electricity prices by 7.2 per cent - following similar cuts from the other five major energy suppliers in the UK.

Source: London Stock Exchange

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