Ofgem’s Investigation And What It Means For You

energy prices in the newsIt seems that energy prices are always in the news at the moment, and generally for bad reasons. High costs that are beginning to spiral, no competition, and apparently no way of knowing which of them to use. Consumers feel lost and unsure, and the market hasn’t noticed; and why should it? With the ‘Big 6’ energy companies (Centrica, SSE, RWE npower, E.ON, Scottish Power and EDF Energy) controlling 95% of the market, where else is there to turn?

Thankfully, something is now being done about this huge increase (dual fuel energy bills are up by a massive 24% since 2009), and Ofgem has created the Competition and Markets Authority (CMA) to carry out an investigation into the energy market. This could, experts say, lead to the break up of the Big 6 suppliers, which in turn would create numerous smaller companies. This can only be a good thing, since the more suppliers there are in the marketplace, the more competition there is. And the more competition, the better the prices for consumers. It will also lead to much simpler tariffs, as those companies with easy to understand rates will attract more end users than those who had different pricing structures for each situation.

However, as with all indepth investigations, this look at the Big 6 and their tariffs and prices will take time, perhaps as long as two years. So what can
be done in the meantime to ensure that our energy bills are reduced as much as possible? We need to use gas and electricity, but paying for it is becoming increasingly more painful.

One option is to look around for a new supplier. Although your current supplier may not be able to reduce your bills, or offer you anything additional, a new one might. To obtain more customers, energy companies often offer benefits and discounts. This could save you money in the short term, but beware! Prices can rise no matter who is supplying your gas and electricity, and you could find yourself in the same situation you were in before if you aren’t locked into a fixed rate (or even if you are). If this is the route you decide to go down, there are many websites available that will show you how much you could potentially save each month or year, and some will even do the switching for you. Don’t worry; with 43% of consumers admitting that they just don’t trust their current supplier, you won’t be alone if you choose to change.

Another way to lower your bills is to switch off appliances when they are not being used. It’s a simple and effective way of saving energy (and money), as even on standby energy is being wasted. It may not seem like a big thing to do, but it all counts towards the end goal of lower energy bills. It’s a great habit to get into.

Or, you could do something completely different. You could install fantastic, energy efficient electric radiators. They are easy to set up (no plumbing or invasive work is required, they just need to be fitted to the wall and plugged into a standard domestic socket), and can be catered to your needs. Only use the ones you want to, rather than having to heat the whole house with the traditional gas central heating method. Plus, because they are electric, they are cheaper to run anyway!

We work with manufacturers who prioritise energy efficiency and bring you the most cost effective home heating solutions. View our range of electric radiators here or call a member of the team to talk about how much you could save by switching to electric radiators.