Energy bills ‘could fall below £1000’

New research has suggested that the average household could have £130 knocked off their annual bills this year, if energy companies reduce their prices as expected.

Moneysupermarket.com, which carried out the research for The Telegraph, said that some of the cheaper tariffs could fall below the £1,000 mark if energy providers cut their prices by 10%. Scottish Power this week announced it would cut the price of one of its fixed-rate tariffs by this amount, and other companies are expected to follow.

The news will be welcomed by billpayers, many of whom have been pushed towards debt following large price increases in 2008.

A debt expert for Think Money said: “Billpayers faced gas price rises of nearly 50% in 2008, so any price cuts will be a help. But since the price rises were so much bigger than the expected cuts, many people may still struggle with their bills. Anyone who finds themselves in that situation should seek expert debt advice as soon as possible.”

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