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Households £41 year better off after energy price cuts

However, bills rose by £381 or 42% last year – which means these cuts will only wipe out £41 or 11% of last year’s increases. The average household energy bill in January 2008 was £912, rising to £1293 following last year’s increases. Now, price cuts will bring it down to £1252. This means consumers will still be paying £340 or 37% more than they were just over a year ago.

There is still a slim hope of a second wave of cuts this year, but consumers should certainly not bank on it, uSwitch warned.

More importantly, any cuts this year look set to provide only short-term relief – suppliers are already hinting that prices will be going back up again next year.

This makes it vital for consumers to start taking action to bring their energy bills down.

Tom Lyon, energy expert at uSwitch.com, said: "To cash-strapped consumers this 3.2% or £41 dip in energy prices will seem like a drop in the ocean, especially when compared with last year’s 42% or £381 price hike. Those who were relying on price cuts to bring their energy bills down to a more manageable level will be particularly disappointed. But there could be greater disappointment to come if energy prices start their steady climb upwards again next year.

"While suppliers have reduced prices by £41, consumers could actually cut their own energy bills by up to £350 just by switching. They should move to dual fuel, pay by direct debit and sign up to an online plan to enjoy lower prices straight away. They should then make it a priority to always pay the lowest possible price for their energy and to use less of it. These two simple steps are everyone’s most effective deterrent to soaring energy bills."

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