Beat the heat on gas bills

It's not too late to try to offset the 35 per cent price rise announced last week by British Gas, but you will have to move quickly to get the best fixed or capped price deal, writes Rosie Murray-West

Householders shocked by the record British Gas 35 per cent price jump last week are being warned by experts that they ain't seen nothing yet.

One price comparison website, energyhelpline.com, claims that gas and electricity bills could be another 40 per cent higher by the start of next year. Analysts at Eclipse Energy go further and predict a 60 per cent rise by 2010. No wonder many experts say that householders should lock into fixed and capped price deals without delay, even though some of the best were withdrawn last week.
Before British Gas raised its prices by 35 per cent for gas and 9.4 per cent for electricity - meaning that dual-fuel customers will pay 25 per cent more - EDF Energy had already increased gas prices by 22 per cent and electricity prices by 17 per cent. Other suppliers are expected to do the same.

"These were the first, but everyone else is expected to follow suit within two weeks," says Mark Todd of energyhelpline.com. "There is also likely to be another rise of 20 per cent in January or February - it is very grim news."

By switching off your electrical equipment rather than leaving the red standby light blinking, you could reduce your electricity bill by up to 8 per cent a year. And turning your thermostat down by 1C will cut heating bills by up to 10 per cent.

Other measures include draught-proofing your home, while insulating the hot-water tank should cut £20 off your annual bill, says British Gas. Replacing all your conventional incandescent light bulbs with energy-efficient versions will save you about £45 a year for a typical three-bedroom property.

Those receiving certain state benefits (for example, pension credit) can claim up to £4,000 under the Government's Warm Front scheme to make their home more energy-efficient. These grants can pay for installing loft insulation, central heating, a new boiler and cavity wall insulation.

To check your eligibility, go to warmfront.co.uk or call the Energy Efficiency Advice Centre on 0800 512 012. Other contacts include energywatch.org.uk (tel 08459 06 07 08); uswitch.com (0800 404 7908); moneysupermarket.com (0845 345 5708); energyhelpline.com/cashback (0800 074 0745). See sust-it.net to find out which appliances are the most energy-efficient.

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