For the first time ever, the cheapest gas and electricity tariffs are now over £1,000 a year.
Results from a recent survey by price comparison website uSwitch.com, found the record breaking prices come at a time when 3 in every 10 households say they are struggling to pay their energy bills.
The survey of 2,300 people also revealed 8 out of 10 households would need to ration their heating to afford it. A uSwitch.com spokesperson warned, ‘Britain is on the brink of an affordability crisis when it comes to household energy.’
The £1,000 barrier was broken earlier this week when energy giant Scottish Power withdrew its online dual fuel tariff which had an annual energy bill of £990. This raised concern from Energyhelpline.com, who said the so-called ‘cheapest’ energy tariffs were no longer available under £1,000.
Mark Todd from Energyhelpline.com said, ‘The cheapest energy tariffs keep getting axed and now there are no tariffs costing under £1,000 a year for an average home.’
He added, ‘This is the first time that has been the case and emphasises in stark terms how bills are reaching historic levels.’
The cheapest deal on the market now is EDF Energy’s Discount Plan v5, which has an average annual dual fuel bill of £1,024.
Over the past few months all of the UKs ‘Big Six’ energy suppliers have increased their prices, and some have made double-digit hikes. All have blamed the rising wholesale costs of energy and some global events including the recent nuclear crisis in Japan, and the problems in the Middle East.
There is however some good news; fixed-rate energy deals are also on the rise, and Energyhelpline.com are recommending households sign up to one now in time for winter.
Todd said, ‘Tariffs aren’t likely to get any cheaper as winter sets in so consumers should sign up to a fixed-term deal or a cheap internet tariff now if they want to save on bills this winter.’
