Confused Urges Consumers To Take Steps Against Rising Energy Costs

Britons finding that rising energy costs are turning up the heat on their capacity to manage their money should take steps to reduce the pressures they are coming under, it has been reported.

Price comparison site Confused points out that as the wholesale cost of electricity and gas is currently almost twice the amount it was a year ago, people should consider switching their utility deal to a capped-price tariff. Pointing to figures by Centrica released in its interim management statement, electricity and gas costs have risen by 100 and 92 per cent respectively over the last 12 months. However, with further hikes set to take place before the end of the year it was claimed that moving to a capped-price deal could offer consumers some protection from increases - which may be as high as 20 per cent. In addition, it was reported that fixing how much money goes toward utility bills will provide a sense of consistency for those managing their monthly spending.

The firm went on to report that homeowners should check household appliances to check how much energy they use. It was suggested that consumers “looking to buy the latest plasma screen or American-style freezer” should first read the instruction booklet, as items that may require high amounts of electricity could have a substantial impact on overall energy bills.

For those looking for an effective way to pay for such major household appliances taking out a personal loan might be advisable.

Confused also reported that switching providers can be another way in which energy bills can be reduced. According to the price comparison site, about half of Britons are yet to change their utilities supplier. As such it was suggested that some people could be spending 30 per cent more money on this area of financial demand than is necessary. If these consumers take the switching plunge and transfer to the most competitive deal on the market, it was pointed out they could benefit from an annual saving of more than 284 pounds.

And in taking steps to reduce the amount of money they have to pay on gas and electricity bills, it may be possible consumers can manage other demands on their spending - such as personal loans, credit and store cards and mortgage repayments - with greater ease.

Ahead of switching to a new provider, Confused urged people to take the time to shop around for the best deal which matches their circumstances. Stating that price comparison sites can be of assistance in measuring up the various tariffs on offer, it was reported that such websites might not cover all the product ranges provided by the six major UK energy suppliers. “In order to really save money, you need to search the whole market and all of the available tariffs,” it was suggested.

People looking for further ways to reduce the financial pressures they face might want to consider applying for a debt Consolidation loan. In getting this kind of loan, borrowers can merge numerous spending commitments into a single low-cost monthly repayment. A consolidation loan might also help those on a pre-payment energy meter after a recent study by moneysupermarket showed Britons on this kind of energy plan are paying an average of 153 pounds more for their gas and electricity than people on a standard tariff.

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