Jeremy Gates on how to grab a good energy deal before the next price hike

WHEN official figures showed a surprise turndown in the rate of inflation this week, it was widely agreed that customers made the vital difference by digging in their heels and refusing to pay extortionate high street prices.

So why doesn’t ‘customer power’ have the same effect when it comes to energy bills, where most of us complain furiously as each price rise is announced, and then meekly capitulate when the bill lands on the mat?

Mark Todd, co-founder and director at price comparison service energyhelpline.com, says: “Some consumers do exert pricing power in the energy markets, but they tend to be in a minority.

“On average, consumers on online tariffs save about £200 on standard rate users, while fixed tariffs save about £100 per year, but these two groups only account for about 20% of users.

“About 80% of the country, roughly 20 million homes, remain marooned on much higher standard rates. If they change at all, they tend to sign up with doorstep salesmen or consultants in supermarkets, and the lowest rates are rarely available through these outlets because energy companies have to pay for these sales teams.”

Although Britain’s economy is hovering uncertainly between recovery and recession, there is little doubt that energy prices are set for another strong upwards leap – probably by 10% to 15% in late summer, and there is little that the Government can do about it.

With China and other rapidly developing nations driving up commodity prices relentlessly, oil and gas prices are bound to follow in their wake.

But extraordinary events in 2011 have brought additional price pressures: the earthquake in Japan is pushing up the price of liquefied natural gas (LNG), while crises in the Middle East stoke further fears of shortage.

Consumers have also just been handed a further £11.3bn bill by the Government for the installation of ‘smart meters’ in 53 million households and businesses, designed to help users reduce their consumption.