Have Your Energy Bills Increased Recently? Save £100s Now
Energy bills are probably one of your most expensive household costs, after your mortgage or rent of course. So, it’s no surprise that people aren’t happy when they’re hit with a price increase!
Unfortunately, all of the Big Six energy providers have announced price hike of around £96/year - which from 01 April 2021 was applied to approximately 11 million UK households who are currently on a standard tariff.
Don’t continue to overpay for your gas and electricity services... continue reading to find out what you can do to avoid these high prices.
Why have my energy rates been increased?
Ofgem, the energy regulator, enforces a price cap on gas and electricity tariffs in Great Britian. This limits how much a supplier can charge a consumer for every unit they use and ensures consumers pay a fair price for their energy.
Last month, however, Ofgem announced a price rise of 9% to this cap – and the energy companies increased their rates in line with the new limit.
This means that the energy bills for a typical dual-fuel household could go from £1,042/year to £1,138/year.
Ofgem’s price cap increase is due to the increase in demand as more people work from home and to help providers recover costs some of the associated with the coronavirus pandemic.
Which energy suppliers have announced price hikes?
As expected, the ‘Big Six’ have all raised their standard tariffs, which include:
British Gas
E.ON
EDF
Npower
Scottish Power
SSE
If you currently have a credit meter, unfortunately you may also experience higher rates. All the suppliers listed above, expect from SSE, have increased their standard tariffs to the price cap limit – meaning households could end up paying £96 more a year on average.
While all of the Big Six companies have also increased their prepayment prices too, the average increase is slightly lower at £87 a year per household.
How can I avoid these price rises?
Many people have been affected financially by the coronavirus pandemic, so it’s understandable if you’re unhappy with the latest price hikes announced by your energy supplier.
Well, don’t worry, you don’t have to put up with your new, more expensive rate...
Guy Anker, deputy editor at MoneySavingExpert.com, says: "Don’t just sit back and accept the rip-off as the cheapest deals on the market are on average £200+/year cheaper than the new standard rates. And with many of us still spending more time at home and using more energy as a result, it makes our call even more pertinent.”
Long-term customers who are out of contract with their current supplier will most likely get the worst rates... as the best deals are saved for new customers. Unfair, we know! But by switching to another company, you can also take advantage of these cheap, introductory offers and cut your bills by £100s every single year.
