Many thousands of people may well be shocked when they open their electricity bills early this year, and it could be due in part to a naïve press.
Energy suppliers are pretty good at controlling what we the public are told about prices and how they’re going up and down and one way they do this is via the media. Last year for example, EDF energy promised not to raise its prices on it’s standard tariffs till March. The media grabbed this and told people that EDF was a safe company to stand by because of this promise at a time when other suppliers were increasing their prices.

What we weren’t told however was that these ‘standard’ tariffs that all the companies have are generally much higher than many of their tariffs and they didn’t promise price freezes on any of their other tariffs.

Following on from this, EDF recently contacted customers to let them know that two of their cheapest tariffs (online Saver versions 3 and 4) are to be switched to the standard tariff from 1st of Jan 2011. In fairness, they did tell people 6 weeks before the changeover, and encouraged them to arrange a move do another tariff if they didn’t want to go to the standard one, however, if customers didn’t pay attention to the letters they received, they may well find themselves opening bills that show price increases that surprise and shock them over the next month or two.
Suppliers often use the media to benefit them in other ways too. They make good clear announcements when they cut or freeze prices, but not when they increase prices. They pretend sympathy when they increase prices because of wholesale gas price increases, but keep mousy silent when those same wholesale prices fall and they don’t decrease our prices accordingly.

It should be made clear too that EDF is not the only company to move customers from cheaper to more expensive ‘standard’ tariffs over the last few weeks. EON, Npower and also the Scottish and Southern Electric group have all done this as well, and there are many thousands of people who will be affected.

What you can do:
With most companies fixed tariffs normally have a fixed date when they end, and at this point customers are usually moved to standard tariffs. Other tariffs that are variable can be changed or removed at any time so it’s important to check bills and read letters that you receive from your energy company carefully.

If you don’t wish to be moved onto the standard tariff you will then need to speak to your supplier and arrange an alternative tariff to go onto, or a change over to a different company if you so desire.

Incredibly more than 3/5ths of all households in the UK are on these more expensive ‘standard’ tariffs, and are paying more than is necessary for their energy. Some alternative tariffs start low and then have prices that drift upwards, so check your tariff and make sure that you know what you are paying and see if you could save money now. The longer you’ve been on a tariff with out changing and checking, the more likely it is that you could save money by changing tariff or company.