Mindful Money

SSE customers will finally feel the benefit of the government’s levy reductions that were announced almost four months ago. The price cut on the 24^th March – the last to be made – will take £38 a year off the average SSE dual fuel energy bill^[1], bringing it down from £1,304 to £1,266 a year^[1]  says uSwitch. Customers will receive a further £12 rebate which will be made to bills later this year. However, the comparison site says the move still leaves SSE customers paying £55 or 5% more for their energy than in January 2013^[1].

The Government’s changes to the environmental and social levies, paid through household energy bills, have left many consumers with a sour taste in their mouths, according to uSwitch.com research.

Just 6% feel that the way energy companies have passed on the reductions is fair^[2]. Two thirds of energy customers (66%) are disappointed by the level of reduction to their bill^[2] and three quarters (75%) expect energy prices to go up again this year^[3].

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: “It’s definitely a case of ‘better late than never’ for SSE customers. Any relief from ever-increasing energy bills has to be a good thing, but having to wait up to three months longer than other customers to feel the benefit of the levy cuts will no doubt rankle.

“Almost three quarters of homes have gone without heating at some point this winter to keep energy costs down^[4] and over a third say that cutting back on energy has affected their quality of life or their health^[5]. While the price cut is welcome, consumers can reduce their energy bill further by switching to a better deal. There is an almost £300 difference between the cheapest and most expensive tariff on the market, which means consumers could stand to save a great deal more if they’re currently on an old-fashioned and expensive standard tariff.”

Average big six energy bills:

Source: uSwitch.com

Based on a medium user consuming 3,200 kWh of electricity and 13,500 kWh of gas on a standard dual fuel tariff, paying quarterly by cash and cheque, with bill sizes averaged across all regions. *£1 difference due to rounding.

Best buy table