Press release:

12 energy suppliers increase fixed deal prices since EU referendum result

  • 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[1]
  • 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[1]
  • Increased wholesale energy costs, which have hit a nine-month high, are helping to fuel the recent price increases[4]
  • But the average price of the market’s top ten deals is still 11% (£99) lower than it was this time last year[2]
  • 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[1].

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[1].

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[4]. 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[2]. 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[5].

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[3].

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.”

— ends —

Notes to editors

  1. 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

 

  1. 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
Average £773

The cost of the average deal in the top ten on 12th July 2015 was £872 (£99 difference).

  1. 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
  1. 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/ ]
  2. See uSwitch.com for full terms and conditions
  3. All prices quoted are based on average dual fuel energy use, as defined by Ofgem, paying by Direct Debit.

About us

Launched in September 2000, uSwitch is an online and telephone price comparison and switching service, helping consumers get a better deal on gas, electricity, broadband, TV services, mobiles and personal finance products including mortgages, credit cards, car and home insurance. Last year we saved UK consumers over £278 million on their energy bills alone.

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