When several energy companies last week announced that they will be reducing their prices, many will have heaved a sigh of relief.
The continual escalation of energy costs over the last couple of years has left a major dent in household finances and families across the UK have struggled to keep their heads above water.
However, experts are advising caution when approaching these new prices, which, while welcome, still leave a big gap between the price hikes experienced last year and current reductions.
Audrey Gallacher, director of energy at Consumer Focus, explained: "The average energy bill is still around £200 more than it was at the start of last winter and many households will find their bills hard to meet.
"We estimate there will still be almost seven million households living in fuel poverty, despite these cuts – which is a huge figure."
According to uSwitch, energy price cuts still leave a £1.9 billion hole in consumer pockets, after energy prices rocketed by £224 or 21 per cent on average during last year - the current price cuts only amount to £34 or 2.6 per cent of that price hike.
The price rises of 2010-2011 added a total £2.24 billion onto household energy bills, meaning that even after cuts the average household energy bill will be 91 per cent higher than it was in 2006.
What's more, new tariff levels will only pull 136,000 households out of fuel poverty.
However, deals are still available and Brits could stand to miss out on a collective £3.5 billion in savings by not shopping around and switching to the cheapest energy provider. According to Moneysupermarket.com, families could save £282 a year by changing supplier.
Savings can also be made by installing energy saving measures, such as
double glazing, which is vital for improving the heat retention of properties and preventing draughts, thus reducing the amount of energy needed.
