Gas & Electricity
The UK government deregulated the gas and electricity industries back in 1998, and for the first time consumers were able to choose which company supplied their gas and electricity. The number of companies supplying gas and electricity has continued to grow since deregulation; today even supermarkets are supplying electricity.
The introduction of market competition gave consumers specific benefits such as:
- Lower bills
- A variety of payment methods
- Special services for the elderly and disabled
- Special offers benefiting customers - gas boiler and central heating servicing at reduced rates, introductory special offers
- 28 day notice period allowing you to cancel contracts.
Despite the increase in competition between companies however, prices for gas and electricity bills have been rising considerably. In 2005 the average bill saw an increase in its total by 14% and 2006 is set to see a similar if not bigger increase. Fixed rates are one way of trying to lower the cost of your bill though they are not a guaranteed way of lowering the cost. If gas prices were to drop, you could actually end up paying more for your fixed rates as you cannot release your bill until the end of the contract. There are also exit penalties to be taken into account so if you do wish to release your bill from the fixed rate, you could end up paying up to £30 to do so. It is worth shopping around however as not all suppliers charge exit penalties. Also, some suppliers lower the cost of the fixed rate if prices fall, meaning that you will not be paying any more than is necessary.
For more information on deregulation and what this has meant visit The Department of Trade and Industry website.
On Compare Online you will be able to learn about the following aspects of managing your gas and electricity supply online, and read information about:
Click here to see how much you could save on your utility bills.
Resources
Department of Trade and Industry - Energy
Ofgem