How to avoid energy rip-offs

Yet a study by Energyhelpline found that despite all of the major providers announcing reductions over the past few days, 8.5 million UK households will have received no benefit, and will still be paying the same as before the mini price war began a week ago.

Crucially, not one of the suppliers has reduced both its gas and electricity, meaning customers will not benefit unless they move to a new tariff.

British Gas has cut its electricity prices by 5 per cent with immediate effect, while EDF Energy announced plans to cut its domestic gas tariff by an average of 5 per cent from February 7.

ScottishPower was the last of the Big Six energy suppliers to make a move, announcing a cut of 5 per cent on gas – both with effect from February 27.

Scottish and Southern Energy will reduce gas tariffs by 3.8 per cent on March 26.

Eon said it is to cut electricity prices by 6 per cent and Clare Francis from Moneysupermarket.com. "Despite the price cuts, many of those who have never switched provider and who remain a ‘standard’ customer won’t see any reduction."

According to Moneysupermarket.com, customers who switch their energy supplier make an average saving of £240 by moving from a standard tariff to the cheapest available product. "There is no reward for loyalty," she says. "The easiest way to reduce bills is by taking advantage of one of the cheap online tariffs. First Utility is currently winning the 2012 price war, with its iSave v9 product."

Switching is particularly important for those who are receiving high bills – and are concerned about paying them. A study by Citizens Advice shows a massive 43% of people are worried that they can’t afford their next fuel bill and half are sure that such bills will put a strain on their finances this year.

Last November eight times as many people came to Citizens Advice for online advice on cutting their fuel bills compared to the previous November. And in 2011 we helped clients with over 96,000 fuel debt problems. The Big Energy Week survey also found having the heating on less topped the list of what people are doing to cut energy bills yet a third of people don’t know that energy companies are offering help to insulate their home, rising to 46% in London.

Gillian Guy, chief executive at Citizens Advice, said: "We know hikes in prices have put extra pressure on people’s budgets at a time when money is already tight. Day in day out our bureaux helping people who can’t afford their fuel bills.

"We’re worried that some people are struggling unnecessarily because they’re not on the best deal; live in homes that haemorrhage heat or are not getting all of the financial help available to them."

This week is Big Energy Week which aims to highlight things people can do to help themselves by cutting fuel bills and saving on energy.

To start, check you are not missing out on any benefits or tax credits that could up your income; your local Citizens Advice Bureaux can help you with this or visit http://www.turn2us.org.uk

Using less energy could save you money, just by doing simple things like turning off lights and switching appliances off at the wall. Turning your thermostat down 1°C alone could cut your heating bill by £60 on average.

If you are unable to pay your bills you should contact your energy supplier immediately as they have to help you manage your bills in a way that you can afford.

For more information visit www.citizensadvice.org.uk/bigenergyweek