UpMyStreet guides: the rise in gas prices

Gas prices have been hitting the headlines this year, and its been hard to get away from extra costs on our energy bills. But while wholesale gas prices - the amount the gas companies pay for their supplies- are reported to be falling, energy companies have continued to raise their gas prices.

A hot summer and mild September meant there was less demand for gas to heat our homes, and the price of wholesale gas has continued to plunge. On the other hand, gas prices for customers are still increasing. According to uSwitch.com, there has been a drop of 87% in wholesale gas prices against a 41% increase in consumer gas prices since December 2005.

The big gas suppliers say they are not able to pass on savings to customers because the price they paid for gas was set up to 12 months in advance, and was more expensive than current prices. The consumer watchdog OFGEM say they will 'call to account' any gas supplier who doesn't pass on gas price reductions to customers made as a result of falling gas prices. This indicates that prices could fall at some point in 2007.

For now, gas price rises look set to continue. Scottish and Southern energy have already announced that their gas prices would increase again in 2007, and the latest price rise from npower came into effect at the start of October.

How to beat the rise in gas prices

One of the best ways to pay less for your gas is to compare prices from all the gas suppliers. If possible, you should do this every few months, and in particular whenever a rise or fall in gas and electricity prices is announced. Because you can switch gas suppliers as many times as you like, you can always ensure you're paying a lower gas price.

By entering a few details, including how much you pay for your current gas bill and your preferred method of payment, you'll be able to compare prices from other gas suppliers and see who can give you a better value deal overall to suit you.

› Compare gas and electricity prices and switch