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Melanie Bien: Turn the heat on energy suppliers

Sunday 16 February 2003 01:00 GMT
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February is proving to be a chilly month, so what better time to crank up the heating and curl up on the sofa in front of the TV? It should be so simple, but Powergen customers might think twice before doing this in future after the utility provider increased gas prices last week.

Admittedly the hike doesn't kick in until 1 May, but from then on prices will increase by 6.2 per cent. Powergen customers might be tempted to put off switching to another supplier until next winter, when the effects of the price rise will really be felt.

Come the winter, however, the chances are you'll have other things on your mind and the switch will be forgotten – until you see the consequences of price rises on your fuel bill.

The move makes Powergen the most expensive supplier after British Gas. But if you aren't a Powergen customer, there's no reason to feel smug because you probably won't escape an increase in gas charges, either. The cost of wholesale gas supplies is going up, and other providers are rumoured to be planning to raise their prices in the next month or so, too.

Luckily, switching has never been easier. Everyone – not just Powergen customers – should check regularly whether they are getting the best deal on their fuel or if they could save by switching to a "dual fuel" package, under which one provider supplies both gas and electricity.

The way to do this is not by allowing yourself to be convinced by the sales pitch of one company whose representative turns up on your doorstep, rings you one evening or corners you in a shopping centre.

Instead, log on to the internet. A number of sites, such as uSwitch.com, allow you to input the name of your current supplier along with how much gas or electricity you use. The online calculator will then tell you whether you could save money by switching. If you don't have access to the internet, telephone-based comparisons are available from Simply Energy.

There are other ways of saving cash on fuel bills, such as paying by direct debit. But be careful to have regular meter readings taken, rather than relying on the estimates provided by your supplier.

Otherwise, you may end up in credit to the tune of several hundred pounds, which can be difficult to recover and means you're missing the whole point of the exercise.

m.bien@independent.co.uk

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