More energy price hikes as rising wholesale costs continue to bite
Five out of the big six energy suppliers have increased the price of their most competitive fixed rate tariffs by an average of £129 or 16% since September
E.ON has upped fixed deals the most, hiking its cheapest plan by an eye-watering 35% or £255 a year, from £760 to £1,015 since September
British Gas’ cheapest tariff is unchanged at £1,044 but remains £174 more expensive than the most competitive big six deal
OVO is the largest energy supplier so far this winter to raise standard variable prices
Seven small suppliers have increased standard variable prices by an average of 9%
Widespread fixed term and variable price hikes could be likely this winter if wholesale prices continue to increase, according to Uswitch.com
Consumers worried about rising energy costs should shop around and switch to a fixed rate deal, to safeguard against future price rises.
Five of the big six energy suppliers have hiked the price of their cheapest tariffs by an average of 16% or £129 since September, according to new data from Uswitch.com, the independent price comparison and switching site. The fixed deal price rises, driven by rising wholesale costs, are joined by recent increases in standard variable tariffs by seven smaller suppliers.
Among the big six, E.ON has increased its cheapest fixed rate tariff the most since September – upping prices by an eye-watering 34% or £255, from £760 to £1,015 a year. SSE and ScottishPower follow closely behind, with hikes of 24% and 16% respectively on their cheapest fixed deals. SSE’s ‘1 Year Fixed’ deal has gone up from £782 to £970, while Scottish Power’s ‘Online Fixed Saver’ increased from £819 to £952. British Gas is the only big six supplier to have not raised the price of its cheapest fixed tariff, but at £1,044 it remains £174 more expensive than the most competitive big six fixed term deal, from EDF.
**Table 1: big six energy supplier’s cheapest deals in September 2016 and November 2016**
| Cheapest tariff September 2016 | Cheapest tariff as of 21st November 2016 | |||||||
|---|---|---|---|---|---|---|---|---|
| Supplier | Name | Price | Name | Price | Price increase (£) | Price increase (%) | ||
| E.ON Saver Fixed 1 year v1 | £760 | E.ON Energy Fixed 1 Year v20 | £1,015 | £255 | 34% | |||
| npower | Online Fix September 2017 | £801 | Online Price Fix December 2017 | £897 | £96 | 12% | ||
| EDF | Simply Fixed October 2017V2 | £780 | Blue+Fixed Price November 2017 | £870 | £90 | 12% | ||
| SSE | SSE 1 Year Fixed v8 | £782 | SSE 1 Year Fixed v9 | £970 | £188 | 24% | ||
| ScottishPower | Online Fixed Saver November 2017 | £819 | Online Fixed Saver December 2017 v2 | £952 | £133 | 16% | ||
| British Gas | All current British Gas Plans | £1,044 | All current British Gas Plans | £1,044 | £0 | 0% | ||
| Average | £129 | 16% |
Source: Uswitch.com. Prices correct as of 21st November, 2016.
OVO Energy, the country’s eighth biggest supplier, announced on Monday (21st November) that it is raising its standard variable tariff by 5% or £50 per year from 10th January 2017. Seven smaller suppliers have also recently increased the price of their standard variable tariffs: Co-operative Energy, GB Energy, Ecotricity, Octopus Energy, Flow, So Energy and Bulb raised prices by an average of 9% or £79 a year since September. The biggest price hike was from GB Energy, which raised prices by almost a third. Last Friday, big six supplier SSE became the first major provider to freeze standard prices, until at least April 2017.
**Table 2: standard variable tariff price rises 2016**
| Supplier | Tariff name | Announcement | Effective | Increase | Previous price | New price | ||
|---|---|---|---|---|---|---|---|---|
| Co-operative Energy | Pioneer | 01/09/16 | 01/10/16 | 3% | £1,089 | £1,121 | ||
| GB Energy Supply | Premium Energy Saver | 12/10/16 | 12/10/16 | 29% | £820 | £1,060 | ||
| Ecotricity | Green Electricity + Green Gas | 24/10/16 | 14/11/16 | 6% | £1,089 | £1,151 | ||
| Octopus Energy | Flexible Octopus | 31/10/16 | 31/10/16 | 6% | £829 | £875 | ||
| Flow | Flow Variable | 09/11/16 | 09/11/16 | 9% | £872 | £949 | ||
| So Energy | So Out of Contract | 11/11/16 | 14/12/16 | 2% | £913 | £935 | ||
| Bulb | Vari-Fair | 15/11/16 | 16/12/16 | 9% | £834 | £911 | ||
| OVO | PAYM Simpler (variable) | 21/11/16 | 10/01/17 | 5% | £1,004 | £1,054 |
Source: Uswitch.com. Prices correct as of 21st November, 2016.
The rising price of energy is closely linked with soaring wholesale costs, which have been climbing at their fastest rate in several years due to factors including the falling value of sterling following the EU referendum and concerns about energy supplies this winter. If wholesale costs continue to rise, further and more widespread price hikes on both fixed and variable tariffs could be likely in the coming months. Consumers concerned about higher bills should shop around and switch to a competitive fixed rate deal, to protect against any future rises.
Claire Osborne,Uswitch.com energy expert, says: “Until the start of this summer, consumers hadn’t faced significant price rises for over two years, but we are now seeing more and more increases from suppliers big and small as rising wholesale prices continue to bite.
“Consumers who are concerned about their energy bills going up should shop around and switch to a better tariff and consider fixed deals. Not only can they save as much as £240 a year, they also provide protection against potential price rises.
“The rising cost of many energy tariffs underlines the need for a more competitive energy market. The Competition and Markets Authority spent two years closely examining the sector and so it’s vital that the Government gives the final package, only published in June, the proper chance to work. The CMA remedies should help more customers move away from expensive standard variable tariffs, lower bills and improve competition. Suppliers must also play their part by doing all they can to help their customers reduce their bills.”
FOR MORE INFORMATION
Jason Wakeford
Phone: 0203 872 5612
Email: jason.wakeford@uswitch.com
Twitter: @UswitchPR
Notes to editors
See table 1 in body of press release
See table 2 in body of press release
Prices based on Ofgem average consumption on a dual fuel energy tariff paying by Direct Debit, with prices averaged across all regions.
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