Consumers Shown To Have Energy Bill Worries

A significant number of people hold concerns about their ability to manage household bills.

Such is the assertion of moneysupermarket, which showed that, at present, one in three people (34 per cent) are worried about how they will meet the cost of heating their home over the winter months. However, with living costs on the rise and a number of utilities companies announcing their second round of price hikes for 2008, it was revealed that managing electricity and gas expenses could become an even more pressing task for consumers.

In research carried out by the price comparison website, it was indicated that just a tenth of Britons think that they will still be able to manage their utility bills in the event of a second increase in energy prices. Meanwhile, some 23 per cent believe they will have to cut back on other areas of expenditure in order to accommodate for rising gas and electricity costs.

And in facing higher utility bills, consumers could find that it becomes more difficult for them to manage other spending commitments. Such areas of financial demand could well include personal loans, credit and store cards, transport costs and mortgage repayments.

Further research from moneysupermarket showed that some 16 per cent of Britons are looking to switch their utilities provider in an attempt to save money, with the same percentage of respondents considering being more efficient in how they use energy.

Commenting on the research, Scott Byrom, utilities manager for moneysupermarket, said: “With many people anxious about the rising cost of energy, it is encouraging to see that consumers are looking to be more energy efficient or swap to a cheaper deal to save money. However, with only two of the big six energy giants having shown their hand, I advise all those looking to secure an online deal to wait until we know how the land lies and once the full bout of price rises has taken place.”

He went to report that competitive fixed-rate tariffs are currently “making a comeback”. Citing the launch of Scottish Power’s fixed price energy 2009 deal, Mr Byrom urged those wishing to protect their finances from future increases in utility bills to seek out such a product. However, it was reported that this must be done quickly as fixed-rate offers “don’t hang around the market for long”.

Consumers worried about their ability to manage with rising energy bills could be advised to consider getting a loan. In taking out a cheap loan as a means of debt consolidation, various areas of monetary commitment could be met quickly and effectively, leaving people with a single monthly repayment to make each month. Such a loan may be particularly recommended after the recent Financial Reality Index by the Alliance Trust Research Centre showed that the nation’s capacity to manage their money has hit an 11-year low.

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