Some things in life are inevitable, and the rising cost of everyday items and bills seems to be one of them. In the last few years customers have faced major increases in the price of electricity and gas far beyond inflation or any pay rises they may have received, leaving many people significantly out of pocket and many more seriously struggling to pay their bills at all. While energy prices have been generally stagnant in the first half of 2010, prices are once more starting to rise just in time for winter, when costs of electricity and gas are at their highest as people turn on their central heating systems.
Energy prices are linked to a number of different factors that aren't always immediately obvious, but the one thing that fluctuates them more than anything else is the wholesale cost of natural gas and oil on the market. Companies has given a number of reasons into exactly why energy prices have risen so much so quickly, including a decline in natural gas production in the UK, reliance on overseas imports, high oil prices, increased demand from developing countries and more.
But of course, all of this is beyond the control of the average consumer who simply wants their bills reduced and their house kept warm. Right now, the best way to save money on your electricity and gas is to compare and switch providers. There's a substantial difference between the prices of different companies, and you can save even more money if you can find a provider that has deals that specifically suit your lifestyle or the size of your household.
Comparing energy prices online is a very simple process that doesn't usually take more than 30 minutes to find a great deal. It also has the added advantage of searching for deals that are only available on the internet. These deals typically have to compete more for your money and normally don't send out paper copies of bills, which has lead them to become some of the cheapest around. However, as energy prices rise these companies are shutting down their tariffs one by one, and this sort of deal maybe completely extinct by the new year, so switching now is advisable.
Always avoid going on a meter rather than billed electricity. While it might seem to make more sense to be able to keep track of your energy use by buying it when you need it, you'll end up paying way more than you would on a billed contract simply because electricity companies are allowed to charge more through meters. It's something the government is trying to stop, but if you can avoid meters at all for the time being, do so. People with low credit histories may not have that choice, however.
Saving energy also helps you save money. Obviously the more insulated your house is the less time you'll need to have your heating turned on, which is the biggest cost in terms of energy prices. Insulation may not be an option for many people who rent homes or simply can't afford the high price. However, if you do own your house look into the various grants you can get from the government to insulate your home - it can be well worth the money in the long term!
