Sort the Winter Fuel Bills While the Sun is Shining

With warnings of 40 per cent rises in gas and electricity prices in coming months, now is the time to limit the impact of dearer bills ahead of winter. "Review energy costs and switch to a cheaper supplier where possible," says Tim Wolfenden, head of home services at energy comparison website uSwitch.com.

"It is worth giving serious consideration to fixed-rate and capped tariffs," he says. "Though you may pay a premium for that peace of mind, the deals could more than pay for themselves over the next year or two if energy prices do rise by 40 per cent."

ScottishPower, Eon and British Gas are offering tariffs fixed until the end of August 2009, while npower will fix rates until the end of December 2010.

A household using 3,300 kWh of electricity and gas a year -- the typical usage of the average household -- could get a fixed bill of £1,022 with ScottishPower. The same household could fix at £1,046 a year with npower until 2010.

But Joe Malinowski at energy price comparison website TheEnergyShop.com says consumers who want a fixed or capped deal should not delay.

Wholesale gas prices are outstripping retail prices and this is a clear indication that bills will have to rise. This will mean providers will withdraw their current competitive rates and reprice them.

"The last time wholesale gas prices broke above retail gas prices was three years ago, in June 2005," he says. "In the following 18 months, energy bills rose by a record 47 per cent. Do not ignore these warning signs. They spell bad news and you need to take steps to protect yourself now.

"We don't know whether average energy bills will be £1,300, £1,500 or even £1,700 in a year, but what we can be sure of is that they will be a lot higher than the £1,050 you can typically fix at today with some of the most competitive tariffs," he says.

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