COMMENT
Energy Prices Soar In 2004

After a relatively quiet summer, Powergen and EDF Energy (who own London Energy, Sweb Energy and Seeboard Energy) announced small price rises in September.

Last year was a bad year for British consumers, thanks to big hikes in domestic energy costs.

Every major energy supplier upped their prices in 2004, with some firms increasing their tariffs two or even three times! This was partly in response to wholesale gas and electricity costs rising by a fifth (20%) in seven months.

According to Fool partner, uSwitch, British Gas raised its gas and electricity prices in January and September, with its customers now paying over a sixth (17.4%) more for their fuel. Atlantic Electric & Gas had the biggest one-off rise: 15.5% for its gas customers. Most providers raised their prices by between 10% and 15% over in the course of the year.

Expect more in 2005, so search, switch and save!

With prices rising throughout 2004, many consumers were keen to find out if cheaper energy deals were available. Manweb, Fool partner Powergen and ScottishPower launched capped tariffs, which protect customers from future price rises by putting a ceiling on the amount that they pay for their fuel.

With wholesale prices for gas and electricity at historically high levels, expect more price hikes in 2005. EDF Energy has kicked off the year with an 8.2% increase, and online customers of Scottish Power are to pay 11.5% more for gas and 8.8% more for electricity. Most recently, Powergen announced that its Energy Online and Age Concern tariffs are to rise by around 9.6%.

With prices rising closer to pre-privatisation levels, Parliament's Trade and Industry Select Committee has begun investigating these price rises. However, don't hold your breath for this report, because you can save money today by switching to alternative suppliers.

Sadly, two-thirds of all UK households have yet to switch supplier for a better deal. That's a crying shame, because uSwitch saved its users almost £19 million last year! On average, it saves switchers £170 a year – a saving that's well worth making. (Learn more on how switching and improved energy efficiency can save you hundreds of pounds a year.)

More: Check out Fool partners uSwitch and Powergen | Save Energy and Energy Saving Trust websites.