Energy Suppliers Not Passing Savings Onto Consumers

It appears that energy suppliers have come forward with more bill reductions for their consumers. However, some price comparison websites have suggested that the move is too little too late. E.ON has just announced that its direct debit customers’ bills will drop by £42 a year. This news actually comes just shortly after Scottish and Southern Energy confirmed that their customers will see a reduction in gas bills of almost £30 a year.

The utilities manager at Moneysupermarket.com, Scott Byron, said that, unfortunately, this latest news does very little to kill talks that providers are not passing on savings in line with wholesale gas prices to their customers. Thus, this new reduction in prices is nothing more than a smoke screen, which is not fooling a lot of people.

An energy expert from Consumer Focus, Robert Hammaond, said that wholesale energy prices have been falling ever since 2008. However, suppliers have chosen to wait until the spring, when people are obviously using less heat, to pass on these big price cuts. This is a perfect model of how a competitive market should not work.

Thus, any consumers who actually want to start saving money on their energy bills will have to take matters into their own hands. Experts are suggesting to invest in a lot of energy saving home improvements. Consumers should avoid buying power hungry appliances and maybe should look into getting a form of renewable energy.

It is said that by simply insulating loft insulation, homes could cut their heating bills by £150 a year. This helps a lot, because heat rises and loft insulation will help it from exiting the house.