Energy bills set to rocket: Could a PPI claim help to bring consumers in from the cold?

Spring is well underway but many Brits have still found themselves turning up their thermostats as the unseasonably cold weather continues to drag on.

And while we may get some respite from high energy bills when the sun finally comes out, it seems that we will be facing sky-high gas and electricity bills no matter what the reading on the thermometer is.

Analysts have argued that average annual energy bills are set to climb by £200, up to £1,600, as the country increasingly relies on gas for our energy supplies.

The impact of the ‘Big 6’

The ‘Big Six’ energy suppliers – British Gas, EDF Energy, E.on, Npower, Scottish & Southern Energy and Scottish Power- have increased their energy prices, and now it seems that smaller suppliers are planning to follow suit, with OVO Energy announcing that it is increasing the price of its cheapest tariff – New Energy Fixed – by £68 from £1,172 a year to £1,240.

Tom Lyon, energy expert at uSwitch.com, said: “The fact that smaller suppliers are increasing their prices is not just a blow to their own customers, but a warning to consumers generally that price hikes are back on the agenda.

“Higher wholesale prices translate into higher household bills – unfortunately for consumers it’s rapidly turning into a question of when rather than if.”

Energy bill hikes – Where a PPI claim could come in

Payment Protection Insurance (PPI) was widely mis-sold with financial products including mortgages, credit cards, loan products and millions of pounds worth of PPI compensation has gone unclaimed.

This missed opportunity means that millions of people could potentially boost their finances through the help of a PPI claims company by an average of £3,750 (iSmart average loan compensation – December 2012) and begin to put a dent in their energy bills.

There is no telling where the rise in energy bills will end and it is getting close to the point where consumers are genuinely struggling to deal with the constant rises that are being enforced. However, this is still not even close to the scale of the problem that the mis-selling of PPI throughout the UK has caused over the last 10-12 years.

So many people were sold the product without their knowledge and in some bizarre instances; people were sold the product despite not being eligible. Many pensioners or students were sold the product but if things had reached the point where they needed to enforce the policy because they were unable to afford repayments, they would not have had a financial leg to stand on.

Processing a claim is a simple and quick process, and you simply need to complete an online application form to see if you could be eligible for a slice of the PPI compensation pot.