Millions of Britons could be paying massive gas and electricity bills this winter, despite the recent mild weather. The tariff increases of 17.4% for gas and 10.8% for electricity will mean that the winter energy bill could be as much as £500 for many people. 
Even though there has been little reason to have the heating on high due to the unseasonal warm weather we’ve been enjoying, the nation will still be subjected to extra high bills. A worry for those who are already finding it difficult to make ends meet in the current economic climate.
MoneySupermarket.com has found that the average family uses around 40% of their annual energy consumption over the colder winter months. It estimates that those on standard energy tariffs could be hit with a staggering bill of £514 in February covering the winter quarter, despite using much less gas.
All of the UK’s ‘big six’ energy companies; British Gas, Eon, nPower, EDF, Scottish & Southern Energy and Scottish power have increased their prices despite a wholesale decrease in the price of gas and electricity.
So, while customers have not been using as much energy as in previous winters, they will still reap a healthy profit due to the increases.
There has been a lot of cheap wholesale gas available in Europe recently due to the mild weather and industrial production has been affected by the economic slowdown. However, this decrease in wholesale price has not been passed onto customers in Britain who are struggling with the biggest cost of living rises for over 60 years.
There is one British supplier who has decided not to increase their tariff plans. Ovo Energy is a small energy company who supply 95,000 homes in Britain. The firm had originally planned to increase its prices by 3.5% this month, increasing an average annual bill by £40 to £1,158, but has now decided against it.
Scott Byrom, the Utilities Manager at MoneySupermarket.com, said: ‘The start of a New Year is an expensive time as consumers deal with a festive financial hangover – a huge energy bill will come as an additional nasty shock.
‘Many will struggle to cope with the crippling costs of energy this winter.’
The company suggests that people shop around for a better deal, as they could save up £200 a year on a standard tariff by switching to different supplier.
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