Schneider Electric: "Despite E.On's reductions, anyone on a standard tariff is overpaying"
22/01/2016 Schneider Electric UK Ltd
E.On has announced that it is reducing its standard tariff gas by 5%. Any reduction is welcome but its a small amount in comparison to the drop in wholesale gas prices of -32.6% in the last year. Standard electricity tariffs still haven't shifted, despite wholesale costs dropping -21.4% in the last year.David Hunter, a energy industry analyst with Schneider Electric, comments:
"Seven out of ten consumers are on standard energy tariffs and won't switch supplier. Remember, the juice still comes down the same pipes and wires. With thirty plus suppliers in the market, consumers should be shopping around. Meanwhile the energy companies rely on you to do nothing and you pay a high price for your latency. Some are overpaying by as much as £500.
"The energy companies appear to be relenting their grip on tariffs, but only just. E.On is the first of the Big Six to move, apart from British Gas, in a year. Yet this reduction is only on the standard tariff, and only on gas. Despite wholesale energy prices falling like a stone (gas down a third and electricity a fifth in a year), these cuts are too modest. Anyone on a standard tariff is overpaying, it's as simple as that.
Slash your energy bill in your coffee break
"The general downward momentum in energy markets is simply not being reflected in the Big Six's tariffs, although there are far cheaper deals available in the market. Use price comparison websites to guide you and make some easy changes. Go 'dual fuel' (power and gas together) - this saves on admin and is attractive for suppliers. Go for a paperless online tariff, and pay by monthly direct debit - all these steps cut your price and save on paperwork.
"This fall in energy bills is temporary. Oil, gas and the rest will rise again and probably with a vengeance. Consumers can insulate their household budget by investing some of the savings now to permanently reduce energy use and carbon footprint, and protect themselves against any price rise."
For more information, please contact:
Schneider Electric Ltd
Stafford Park 5
Telford
Shropshire
TF3 3BL
Tel: 0870 608 8 608
Fax: 0870 608 8 606
Email: gb-customerservices@schneider-electric.com
Web: www.schneider-electric.com/uk
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