The cost of new fixed price energy deals has increased by up to £105 in the last month, according to new analysis by Uswitch.com
15 energy suppliers, including Extra Energy, Sainsbury’s, OVO and First Utility have replaced their cheapest fixed rate deals with more expensive plans in the last month – with 12 doing so since the EU referendum result
Increased wholesale energy costs, which have hit a nine-month high, are helping to fuel the recent price increases
But the average price of the market’s top ten deals is still 11% (£99) lower than it was this time last year
Consumers worried about rising costs may want to consider switching to a fixed energy deal to safeguard against any future price hikes.
Fixed priced energy deals have increased by up to £105 since the UK’s vote to leave the European Union, according to a new analysis by Uswitch.com, the independent price comparison and switching service.
Fifteen suppliers have replaced their cheapest fixed rate tariffs with more expensive plans in the last month by an average of £38, with the biggest price hikes coming from Extra Energy (£105), Sainsbury’s Energy (£94), OVO Energy (£63) and First Utility (£48). Twelve of the 15 suppliers have increased their prices since the EU referendum on 23rd June.
Increasing wholesale energy prices – which have reached a nine month high after falls since 2013 – have helped fuel the recent increases in the price of some suppliers’ best deals. The wholesale prices of gas and electricity had been falling since Q3 2013 and Q4 2014, respectively, but both have begun to climb in the second quarter of 2016. This, according to independent price reporting agency ICIS, is due to future energy supply concerns, market uncertainty following the UK’s EU referendum result and the falling value of sterling, which is putting upward pressure on the cost of energy imports.
Despite some recent price increases, the market’s top ten energy deals are still, on average, 11% (£99) lower than they were this time last year. Today, many competitive deals are available, up to £315 a year less than the average big six standard variable tariff. Suppliers who have introduced cheaper deals in the last month include npower, which today launched its ‘Online Price Fix August 2017’ tariff at £786 a year. Following the CMA’s energy market investigation, npower is the first supplier to take advantage of new rules from regulator Ofgem enabling providers to offer more than four tariffs. In addition, new and existing dual fuel npower customers switching to the deal via Uswitch.com can also get one night’s free hotel accommodation.
Consumers who are concerned about the impact of the rising cost of energy on their bills may want to consider switching to a fixed tariff to help protect against any future price hikes. In addition to one year deals, some suppliers have also introduced longer term offers including First Utility, who last week launched a three-year fixed deal ‘FU First Fixed June 2019 v2 plus’ priced at £999 a year.
Tom Lyon, Uswitch.com energy expert, says: “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 there are still some very competitive deals on the market, offering significant savings against the average big six standard variable plan. 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.”
Cheapest fixed energy tariff price changes since 10th June, 2016 (source: Uswitch.com)
|Supplier||Previous tariff||Price||New tariff||Price||Launch date||Difference|
|Octopus||Octopus Fixed||£763||Octopus 12M Fixed||£777||8th July||£13|
|Extra Energy||Fresh Fixed Price Oct 2017 v1||£770||Fresh Fixed Price Aug 2017 v1||£875||8th July||£105|
|Flow||Connect 7||£752||Connect 8||£792||6th July||£40|
|Utilita||Premium Energy||£1,167||Premium Energy||£1,136||4th July||-£31 (cheaper)|
|Sainsbury's Energy||SE Fixed Price June 2017||£750||SE Fixed Price July 2017||£844||1st July||£94|
|British Gas||HomeEnergy Fixed Sep 2018||£1,019||HomeEnergy Fixed Nov 2018||£1,044||1st July||£25|
|First Utility||First Fixed July 2017 v140 Online Only||£784||First Fixed July 2017 v7 Online Only||£832||30th June||£48|
|So Energy||So Elephant||£765||So Emu||£766||30th June||£1|
|Go Effortless Energy||June 2016 v2||£845||June 2016 v3||£880||30th June||£35|
|Affect Energy||Fixed Saver June 2017||£778||Fixed Saver July 2017||£785||30th June||£7|
|EDF||Blue+Price Promise July 2017v2||£835||Blue+Price Protection Jul17||£878||29th June||£43|
|ScottishPower||Online Fixed Price Energy June 2017||£812||Online Fixed Price Energy July 2017||£843||27th June||£31|
|GB Energy||Fixed 12 Topaz||£735||Fixed 12 Crystal||£780||24th June||£45|
|Go Effortless Energy||June 2016 v1||£830||June 2016 v2||£845||15th June||£14|
|GnERGY||GnERGY Fixed June 2017||£751||GnERGY Fixed July 2017||£786||15th June||£35|
|OVO Energy||Better Energy (all Online)||£823||Better Energy (all Online)||£886||10th June||£63|
|Average price increase||£38|
Top 10 energy deals on the market as of 11th July, 2016 (source: Uswitch.com)
|Rank||Supplier||Plan name||Average bill size||Tariff type||Exit fee|
|1||Avro Energy||Simple and Summer||£747||Fixed||-|
|2||GB Energy||Premium Energy Saver||£765||Variable||-|
|3||So Energy||So Emu||£766||Fixed||£10|
|4||Co-operative Energy||Co-op Fix for Longer September 2017||£770||Fixed||£60|
|5||Places For People||Together - September 2017 - fixed 34||£771||Fixed||£60|
|6||iSupplyEnergy||iFix 201708 v2||£776||Fixed||£60|
|7||Octopus Energy||Octopus 12M Fixed||£777||Fixed||-|
|8||Affect Energy||Fixed Saver July 2017||£785||Fixed||£50|
|9=||GnERGY||GnERGY Fixed July 2017||£786||Fixed||£50|
|9=||npower||Online Price Fix July 2017||£786||Fixed||£40|
The cost of the average deal in the top ten on 12th July 2015 was £872 (£99 difference).
Longest term fixed energy deals on the market as of 11th July, 2016 (source: Uswitch.com)
|Supplier||Tariff||Price||End date||Exit fee|
|First Utility||First Fixed June 2019 v2 plus||£999||30/06/2019||£60|
|British Gas||HomeEnergy Fixed Nov 2018||£1,044||30/11/2018||£40|
|Co-operative Energy||Co-op Fix & Fly October 2018||£886||31/10/2018||£60|
|ScottishPower||Fixed Price Energy October 2018 online||£1,065||31/10/2018||-|
Source: ICIS Power Index Q2 2016: http://www.icis.com/press-releases/wholesale-gas-and-power-prices-rise-in-q2-2016-due-to-brexit-and-supply-concerns/ ]
See Uswitch.com for full terms and conditions
All prices quoted are based on average dual fuel energy use, as defined by Ofgem, paying by Direct Debit.
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