Energy Price Hike – Customers Fight Back

CHESTER, England, June 14, 2011 /PRNewswire/ –

             Consumers take action to save money - 1,264 per cent uplift in
                    energy switches through moneysupermarket.com
                Bill payers can save GBP382 a year by moving to cheapest
                                    'fixed' deal
                           Apathy will cost consumers dearly

British bill payers are reacting to the latest energy price hike news by
taking control of their finances and seeking ways to save on their energy
costs, says moneysupermarket.com [http://www.moneysupermarket.com ].

Britain’s number one comparison site has seen a big increase in people
switching to a better value energy deal following energy giant Scottish
Power’s price hike announcement. From August 1st 2011 the cost of standard
gas will increase by 19 per cent and the cost of standard electricity by 10
per cent, adding an extra GBP180 to customers’ annual bills. This price move
has sparked savvy switchers in to action and moneysupermarket.com’s energy
comparison tool has seen a whopping 1,264 per cent uplift to the number of
customers swapping their energy tariff[1] compared to the days leading up to
the announcement.

Apathy will cost consumers dearly; bill payers languishing on their
supplier’s standard tariff could save up to GBP382 a year by swapping to the
current cheapest fixed deal – the Fix Saver v2 tariff from EDF Energy, at
GBP1,009 a year[2]. Furthermore, if all bill payers moved to the best fixed
deal, we could not only save GBP2.3 billion collectively[3] as a country,
but would freeze energy outgoings until September 2012.

Scott Byrom, utilities manager at moneysupermarket.com
[http://www.moneysupermarket.com/gas-and-electricity ] said: “Customers are
certainly taking a stand against energy price hikes; a crucial move as apathy
certainly won’t be rewarded. The Scottish Power price rises will affect 2.4
million households. On a national scale this adds an extra GBP420 million to
Scottish Power customers’ annual bills.

“This increase has really ignited our customers to act and get a better
deal before any further price increases are announced. Now really is the
time to get on to the best priced energy tariff for your usage level and
area you live. Bearing in mind historical energy market price rises, it’s
highly likely the other energy providers will follow suit. In the face of
rising prices, opting for the market leading fixed product Fix Saver v2,
from EDF Energy with average bills of GBP1,009 is the best way to safeguard
against further price increases from the energy giants.

“Shopping around using a price comparison site for the best value energy
product is vital and I urge everyone worried about the cost of their bills
to act quickly as the best priced products are unlikely to be available for
long. The more of us who switch to a better deal the more suppliers will
need to compete for our business.”

Notes to Editors:

[1]1,264 per cent uplift in energy switches on Wednesday 8th June 2011,
compared to the daily average for 1st – 6th June 2011.

[2]Standard, fixed and online / best energy tariffs

NEW CONSUMPTION LEVEL

British Gas: average standard tariff (GBP1,096.75), average online/best
tariff (GBP954.59 Web Saver 12), fixed tariff (GBP1,217.41 Fixed Price June
12).

EDG Energy: average standard tariff (GBP1,118.28), average online/best
tariff (GBP940.49 Online S@ver 10), fixed tariff (GBP1,009.05 Fix Saver v2).

E.ON: average standard tariff (GBP1,122.83), average online/best tariff
(GBP964.97 SaveOnline v7), fixed tariff (GBP1,126.05 Fixed Price v5).

Npower: average standard tariff (GBP1,148.98), average online/best
tariff (GBP973.28 Sign Online 22), fixed tariff (GBP1.013.80 Go Fix 6).

Scottish Power: average standard tariff (GBP1,391.21), average
online/best tariff (GBP932.10 Direct October 12), fixed tariff (Platinum
Fixed Energy 2014).

Scottish & Southern: average standard tariff (GBP1,094.11), average
online/best tariff (N/A), fixed tariff (N/A).

Average: average standard tariff (GBP1,162.03), average online/best
tariff (GBP953.09).

Sourced by http://www.moneysupermarket.com 09.06.2011

[3]We know from Ofgem data that 58 per cent of gas customers have never
looked for a better deal, with 57 per cent of electricity customers
remaining apathetic. Therefore, of the 27 million households in the UK, at
least 15 million have never moved away from their incumbent gas or
electricity supplier.

http://www.ofgem.gov.uk/Sustainability/SocAction/Publications/Documents1/Ipsos-MORI%20switchingsurvey2009.pdf

GBP1162.03 – GBP1009.05 (average cost of standard – best priced fixed) =
GBP152.98 (GBP153)

GBP153 x 15,000,000 = GBP2,295,000,000 (GBP2.3bn)

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