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Consumers expect energy cuts to be handed down

With oil prices dropping dramatically, homeowners aren't alone in thinking utilities bills should also come down

As millions of households across the UK face the very real prospect of gathering around the table for their Christmas dinner wrapped up warm in order to keep their energy bills down, pressure is mounting on suppliers to give consumers a welcome break and put their prices down.

For while all of the 'big six' gas and electricity firms claimed that the recent series of price hikes – which saw typical annual bills rise by as much as 30 per cent in the space of a few months – were unavoidable due to the soaring cost of wholesale oil, the global scene is now very different.

Indeed, due to a variety of factors, not least increased production rates and an easing of political turbulence in key regions, the cost of a barrel of oil now sits around the $86 mark, almost half of what it was when it reached a record peak of $147 earlier this year.

As such, consumers, charities and even some politicians are now calling on energy firms to pass these savings on to their customers, thereby opening the door to significant savings for those who take the initiative and switch utilities supplier in search of a better deal.

Indeed, a recent street poll carried out by Adfero found that a significant majority of Brits would support such a move, with most feeling that it would be unfair for the big firms to fail to pass on the benefits caused by dropping oil prices.

London-based personal trainer Liz Beesley stated: "I think they should do because as soon as prices go up then we have to take the hit for that, but why doesn't it work the other way round?

"It's just silly. It's been said that people in the UK all get together about stupid things that they are never going to be able to change, but we could change energy prices, but none of us will get together and campaign together to stop it."

Fortunately, for those households finding themselves struggling with record energy prices and holding out for some good news, it is not merely the man on the street keen to see suppliers put their prices down in light of recent market developments.

Labour MP for Hayes and Harlington John McDonnell has accused one energy company in particular of pursuing a "grotesquely obscene level of profiteering", while the leader of the union Unite, Tony Woodley, has called on the government to do more to protect the most vulnerable of UK customers.

While it is yet to be seen what effect such arguments have, what is certain is that energy companies will be in no hurry to put their prices down, particularly with the coldest winter weather just around the corner.

As such, Brits would be well advised to do their uppermost to shop around for the best deal and switch energy suppliers if necessary, while simultaneously keeping their fingers crossed that a marked drop in tariffs is just around the corner.

31/10/2008
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