DOUBLE WHAMMY: POSSIBLE £357 MILLION WAVE OF PRICE RISES FOR UK ENERGY CUSTOMERS

Price hikes could hit within the few days.

DOUBLE WHAMMY: POSSIBLE £357 MILLION WAVE OF PRICE RISES FOR UK ENERGY CUSTOMERS

 

Co-founder of Energyhelpline Mark Todd commented:

 

History shows us that when one big supplier does a price hike in the following weeks and months the others tend to follow.

 

The cold weather, tariff simplification and wholesale price spikes are all likely to be cited as justifications. Wholesale gas prices doubled yesterday in an unprecedented spike, due to the extreme cold and pipeline issues.

 

Our expectation is for a wave of price hikes across the board up to 5%. This would add up to £60 a year to energy bills. The average hike is likely to be £20-£30 a year if other companies follow E.ON’s lead. 58% of UK customers, approximately 16.24 million, are still on pricey SVTs. If all of these suffered a £22 price rise the total possible cost would be a shocking £357 million.

 

Heating bills are already rising due to freezing conditions caused by the Beast from the East and storm Emma. This likely round of price rises will be a bitter double whammy for customers. The best way to avoid soaring prices is to switch provider without delay. Switching energy is really easy and typically saves customers £250-£300 a year. Not a bad return for ten minutes work.

 

 

Average UK Gas & Electricity Bills - Standard Tariffs - Annual Costs & Savings

 

 

 

 

Standard Monthly Direct Debit Annual Cost

Possible Switch Saving

Switching to Small Supplier

Switching to Big Supplier

npower

£1,166

£356

£265

E.ON

£1,153

£343

£252

ScottishPower

£1,147

£337

£246

EDF

£1,142

£332

£241

SSE

£1,121

£311

£220

British Gas

£1,101

£291

£200

Average

£1,138

£328

£237

 

Notes

 

1.       Source: energyhelpline.com, 1/3/2018

2.       All calculations are for an average usage dual fuel household paying by monthly direct debit.

3.       Average usage as defined by OFGEM is 12,000 kWh pa of gas and 3,100 kWh pa of electricity

4.       Calculations include E.ON Standard price changes coming into effect from 19 April 2018

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