Energy prices stay high despite wholesale price drops

The big six have been slammed for not lowering energy bills in line with falling wholesale prices whilst small suppliers continue to dominate the best buy table

Small suppliers continue to trump their larger rivals for price

Small suppliers continue to trump their larger rivals for price

Despite wholesale gas and electricity costs being at their lowest since 2010, the big six – British Gas, EDF Energy, E.ON, npower, ScottishPower and SSE – have yet to align these lower costs with consumer bills. Wholesale costs make up approximately half of all consumer energy bills.  

In stark contrast, independent suppliers such as First Utility and Ovo Energy have claimed the top spots on the energy best buy table.

Creating a more competitive market

Dermot Nolan, chief executive of Ofgem told consumers that anyone unhappy with the big six’s prices can explore other options on the market.

“Consumers can vote with their feet”, said Nolan, adding, “Independent suppliers are currently offering some of the cheapest tariffs on the market.”

Nolan expressed the view that creating a more competitive market place was key to ensuring fairly priced energy. He called for energy suppliers to be more transparent in order to  earn the public’s trust and said they “need to take the initiative and explain clearly what impact falling wholesale energy costs will have on their pricing policies”.

Commenting on calls for the big six to drop prices Energy UK, the industry’s trade association told the Daily Mail: “All energy suppliers aim to hold costs as low as possible for as long as possible”.

Cheapest tariffs on the market

First Utility continues to offer the cheapest energy plan on the market. The supplier’s iSave Fixed Aug 2015 tariff comes in at £992 per year, but includes £30 per fuel cancellation fees. These cancellation fees are only charged if you sign up and then decide to leave the tariff before it ends.

Anyone looking for more flexibility should consider Flow Energy’s Thames Online Fixed September 2015 plan, which costs £1,010 and does not carry any cancellation fees.

The cheapest plan from the big six is EDF Energy’s Blue+Price Promise August 2015, which is a full £57 more expensive than the cheapest tariff on offer. However, it does not include any cancellation fees.

Supplier

Plan Name

Price

First Utility

iSave Fixed August 2015**

£992

Extra Energy

Fixed Price September 2015**

£1,002

Flow Energy

Thames Online Fixed September 2015

£1,010

OVO Energy

Cheaper Energy Fixed**

£1,028

Green Star Energy

No Worries 12 Months Fixed 1405**

£1,041

EDF Energy

Blue+Price Promise August 2015

£1,049

* Based on a medium usage customer using 3,200 kWh of electricity and 13,500 kWh of gas paying by direct debit with bill sizes averaged across all regions.

**These plans carry cancellation fees

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