Four predictions for the UK gas and electricity industry 2013

Many people will be glad to have seen the back of 2012, especially in regards to their gas and electricity bills. Five out of the six ‘Big Six’ energy firms bumped up their bills last year, leaving many of us having to pull our purse strings even tighter in order to get by. E.On crashed the party a little later, bumping up their prices mid January. So with price increases greeting us at the tail end of last year, this blog looks at four predictions for the gas and electricity industry in 2013.

Oh No! More Price Rises?

It’s hard to know for certain whether we will see price rises this year, but there are certainly suggestions that we will see price hikes from some.

With energy firms set to be forced by the Government to meet energy efficiency targets, the consumer who pays the bill may end of footing at least a little of that cost – the good news, if the firms are going out of their way to make our homes energy efficient, we should save money on our gas and electricity in the long run.

The Little Guy’s Will Give the Bigguns A Run For Their Money

Despite the ‘Big Six’ energy firms hitting customers with higher bills, many smaller suppliers actually provided their customers with gas and electricity for cheaper rates than before.

If this trend continues in 2013, we might see small suppliers offering more customers a cheaper alternative to the ‘Big Six’. Variety is the spice of life after all and Gas and Electricity energy regulator, Ofgem, has already gone out of its way to promise more competition amongst the energy suppliers.

A Greener Deal Isn’t So Mean

Although this is cheating somewhat, as it is definitely on the cards as opposed to simply being a prediction, the Green Deal is a Government based incentive scheme where participants can have work done on energy saving improvements, without having to  pay the costs up front.

This also includes things such as solar panels so in theory, whilst paying back for the work on your energy bills, you will be cutting the overall costs down with the new energy efficient measures.

Tariffs – We Don’t Need No Stinkin Tariffs

Maybe a little dramatic in tone, but actually plans have been put into place by the Government which will hopefully see the end of companies besieging consumers with numerous tariffs that end up boggling our mind more than helping us make our minds up on a new tariff.

Plans by both Ofgem and the Government, seem to be gearing towards forcing energy firms to give customers a choice of four tariffs – whether this is actually beneficial for the consumer is up for debate, but it will at least make choosing one a tad easier.

Louisa Jenkins is an energy advisor who gives advice to people on the best ways of making sure their gas and electricity bills remain manageable.

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