UK Warned Against Freezing Gas And Electricity Bills

Many of us have shopped around for the best prices on our gas and electricity bills in the past. However, some schemes may not be the great deals they look initially.

As the prices of gas and electricity have risen over recent months more utility operators have begun offering long-term fixed rate deals.

With the continued shocks to international energy prices, and with doom-laden commentators predicting energy insecurity, capping your gas and electricity rates may seem like good insurance against future shocks.

But price comparison websites have pointed out that as gas and electricity prices have risen between ten and 15 per cent in recent months, now may not be the best time to sign up.

As well as paying a premium to keep prices capped, prices fixed now will stay at a peak if, as predicted, wholesale energy prices and the knock-on retail value of gas and electricity falls.

"This may well be one of the highest points in the commodity cycle, with an improving UK gas import position from 2007 onwards putting downward pressure on future market prices," said a senior utilities analyst.

"Although further increases in wholesale prices are still possible and suppliers have warned customers that wholesale prices might go up or down, the industry may well be bottling-up a problem if current fixed price offers do badly."

Instead of changing supplier there are other ways to save money on your heating and lighting.

Some tips on how to cut back:

•    Turn off lights – if you are not in a room then the light does not need to be on.
•    Use radiators with individual thermostats – these ensure that the rooms you are in regularly can be kept warm whilst others can be cooler, for example bedrooms rarely  need to be heated during the day.
•    Only boil the amount of water you need in the kettle.
•    Turn the heating down or off during the day when you are at work or out.

If you would like to know more about utilities why not ask AnswerBank Home and Garden.