GLOBAL PETROL PRICES

Nearly 12 months ago UK residents were warned to prepare for an increase in heating and utility costs, on the verge of a cold winter and possibly a colder and wetter summer many people were worried that at a time when they'd need their heating and electricity that they'd possibly face the prospect of not being able to afford it.

Oil prices were on their early 2008 meteoric rise and TV stations and newspapers were awash with adverts for loft insulation and double glazing windows, subtly hinting to the masses that the big chill was coming, whilst the cost of utilities rose many homeowners accepted this rise since the cost of living was going up and gas and electricity were an obvious target for price increases.

The trouble is that nearly a year on from all the warnings oil has come down in prices, something we are seeing notably at the petrol pumps but gas bills are still high and in many cases they are set to rise again!

How has this been possible? The explanation is that many customers were corralled into paying via Direct Debit as this was touted as the cheapest way to pay for utility bills; the estimated costs were totalled at the end of the year and then based on whether we've gone over or under that estimated amount then our account is either in credit or in debt respectively.

When an account is in credit that means you've paid too much and luckily the gas company have noticed, conversely if you're found to be in debt then you've been using a lot of electricity or gas and will owe slightly more than your estimated use.

This system has worked without much protest until recently where gas companies have proposed to increase the estimates by over 100% in some areas, this leaves a sour taste in customers mouths as these estimates are supposedly based on previous year's usage and considering how many people tried to limit usage the past year due to increased electricity bills it seems rude to many customers that the big energy companies are telling us that we've been using more in past years and will use more next year.

At the moment many accounts are in credit and still people's bills have gone from around £70 to £150 in some extreme cases. The overruling fact is that people in their thousands have complained, threatened to switch and disputed their increased bills, they may be right to as some have reported that the increase has been wiped once they pleaded with the energy company to re-check their statistics.

So if you find that this year you're going to be paying substantially more despite a more frugal approach to gas and electricity then it may be worth calling up your provider and disputing the action or taking your business elsewhere.