There has been much uncertainty since the majority of UK voters opted to leave the EU, leaving many to ask what it could mean for everything from interest rates to energy prices.
New research from uSwitch has shown that of the 12 suppliers that have replaced fixed energy plans in the weeks since the vote, all have opted to make those deals more expensive — pushing the average cost of fixed price energy deals up by £38.
This news comes amid reports from ICIS, the independent price reporting agency, that wholesale energy prices have begun to climb due to concerns about future energy supplies and general market uncertainty, and the decreased value of sterling.
Between the ambiguity and the rising wholesale prices, Tom Lyon, energy expert at uSwitch.com, says this could be the end of the cheaper than cheap fixed deals of the past few years:
“For nearly three years, wholesale gas and electricity prices have been falling, leading to cheaper and cheaper fixed term deals for consumers. But with concerns about future UK energy supply, the impact of Brexit and a weaker pound, we are starting to see some suppliers increase the price of their cheapest deals."
But households shouldn't panic just yet — despite the recent increases, the market's top 10 energy deals are 11% cheaper on average than they were this time last year.
"There are still some very competitive deals on the market, offering significant savings against the average big six standard variable plan," explains Lyon. "Consumers concerned about rising energy costs should shop around and consider switching to a fixed term tariff, offering protection against any potential future price hikes."