Gas companies increase spending on social programmes
The six largest gas and electricity suppliers in the UK have tripled spending on social programmes, designed to help the most vulnerable people pay their bills.
British Gas, E.ON, EdF Energy, Scottish and Southern, Scottish Power and nPower invested a total of £157 million in social programmes. The majority of the money was spent on providing low-cost social tariffs.
Social tariffs exist to help people struggling with gas or electricity bills to keep on top of charges.
It is hoped that these plans will help reduce rates of fuel poverty - defined as a need to spend more than 10 per cent of household income on energy.
Fast energy price comparison
However, as well as social plans, there are many other payment plans available from energy companies. Depending on your circumstances, these may be more suitable for you.
Comparing payment plans
Every energy provider has to offer some form of social payment plan. In each case, this must be equivalent to the supplier's cheapest tariff.
When you change supplier or simply want to move onto a different payment plan, you can compare the various options quickly and easily using a price comparison site.
Whereas in the past you would have had to contact all the gas providers that operate in your area and discuss the payment options with them, you no longer have to go to all this effort.
Instead, you can use a price comparison site to do the work for you.
If you opt for this approach, all you will have to do is enter a few details about your location, current provider, average monthly bills and payment method.
You will then be presented with a list of potential gas suppliers in your area, showing how much you could save if you switch.
Often, you can even change gas supplier directly through the price comparison site so the whole process can be completed online.
Other payment plans
Each energy supplier offers a wide range of payment plans, designed to provide their customers with the choice they need and to cater to different personal circumstances.
Aside from social plans, you can choose from fixed, capped, green and online payment plans when deciding how to pay for gas.
Green payment plans are designed to combat climate change. This provides emission-free gas, usually through carbon offsetting schemes.
Provides emission-free gas
Online plans also go some way to helping the environment. You will be able to arrange payments and manage your account details online, whenever and wherever you want.
By promoting paperless billing, online plans mean fewer trees are felled for paper - which has the double advantage of being kinder to the environment and to your pocket.
Fixed plans offer the most simplicity to consumers, as the price of each unit of energy is fixed for a certain period of time under this plan, making budgeting easier.
If you choose a capped plan, the price that you pay for your energy can vary. However, you will have the peace of mind that it won't rise for a certain period of time and may even go down depending on the wholesale cost of gas or electricity.
Specialist business energy plans also exist for commercial users.
Understanding gas bills
Whatever payment plan you choose, your utility bills will contain a lot of useful information about your energy use. This may help you cut down on wastage, ultimately saving you money, which is particularly important if you are on a low income.
It is well worth reading your bill in detail. As well as telling you how many units of electricity or gas you have used, your bill may mention a standing charge.
The standing charge is used to pay for maintenance to your supply. While some payment plans do not have this charge, the cost per unit of energy may be higher as a result.
It is important that you understand your gas bills, whether you receive them on paper or online.
If you don't understand any of the information on your bill, just ring your supplier for an explanation. Once you are clear about what you are paying for, it is easy to use a price comparison site to work out whether another supplier offers better value.
