Home insurance holders set to be hit by rising energy bills

Thursday, 17 February 2011

Home insurance policyholders are likely to be affected by rising costs for energy bills.

EDF Energy announced before Christmas it would be freezing prices until March this year and it has now said it will be raising energy prices from March 2nd, which is "no surprise", according to moneysupermarket.com.

Buildings insurance holders will be affected by a 7.5 per cent rise in electricity and a 6.5 per cent rise in gas prices.

This means, according to the price comparison site, customers will on average pay £1,118 for duel fuel - an increase of £72.

"Now all the Big Six energy giants have shown their hand, we would hope to see some stability in the UK energy market, which is reassuring for hard pressed consumers," said Scott Byron, energy manager at moneysupermarket.com.

"Even though expensive winter energy bills are landing through letter boxes as we speak, switching to a cheaper and more suitable deal will enable consumers to offset some of their spend."

Recently, a poll by HSBC revealed contents insurance customers earning £100,000 or more are likely to increase their annual spending by 7.8 per cent.

Posted by Noel Martin

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