Following ScottishPower’s price rise yesterday, Thomas Lyons, energy expert at uSwitch, tells us whether or not other energy suppliers are likely to follow suit and whether now’s the time to fix our energy prices…
There you go, that was a quick blog wasn’t it? Maybe I’ll go and make a cup of tea. What? Explain more? Oh go on then…
ScottishPower yesterday announced that, as of 1st August, they would be increasing their gas and electricity prices by 19% and 10% respectively. This is a huge increase, the likes of which we haven;t seen since 2008 when rates rocketed by 41% in a year, leaving many families worrying about the effect this will have on their winter bills.
But it won’t be just ScottishPower.
Energy suppliers, much like our 2012 Olympic cynchronised swimming team, tend to move together and I would be shocked if we don’t see similar increases from the other major suppliers before the end of the year. They haven’t moved yet though, which means that we are in a unique situation with some suppliers yet to put prices up, still offering fixed tariffs. We are pretty confident that the others will follow suit and by roughly the same amount but in the meantime there is a window of opportunity.
Given this situation the fixed plans on offer now are looking like a very good option. The increase announced by ScottishPower equates to a dual fuel increase of 14.9% which, if matched by other suppliers, would mean that fixed tariffs would quickly become very competitive.
So, fixed plans certainly look like they will be the best option for a lot of people right now, giving piece of mind combined with rates which we expect to get very competitive, very soon.
But a word of warning, the last time we saw a situation like this was in 2008 when we had a similar situation – large price rises from some suppliers and a mad rush of customer taking up the fixed products on offer from the others.
As you might expect those fixed deals weren’t available for long. Lots for people enjoyed cheap energy rates for the next two years, lots of others missed out… you have been warned.
Should I fix? See our fixed price energy guide and see how much you could save if energy prices go up again.