- Cheapest energy deal on the market has risen by £100 or 14% since July 2016
- But big six energy suppliers have hiked cheapest deals by average of £135 or 16% since September
- Meanwhile small and medium energy suppliers have increased standard variable tariffs by an average of 9% or £87 since October
- EDF Energy is raising prices by 8.4% for its standard variable electricity customers, costing a collective £24 million for the two million customers on its dual fuel standard tariff
- With price freezes set to thaw in spring, uSwitch urges energy customers to switch to a fixed deal now to protect against further increases.
uSwitch.com is encouraging households to move to a fixed energy deal as the cost of bills continues to soar. New analysis from the price comparison and switching service reveals that the cheapest energy deal on the market has increased by £100 or 14% since July 2016, while the average cost of standard variable tariffs has also climbed.
According to the analysis, the cheapest energy deal on the market in July 2016 was IRESA’s Flex 1 tariff, costing £734 per year. Today, the cheapest deal is IRESA’s Flex 4 tariff, which, at £834, represents a 14% increase in six months.
Meanwhile, five of the big six energy suppliers have hiked the price of their cheapest tariffs by an average of 16% or £135 since September. The cheapest deal on offer from E.ON has increased the most significantly by a staggering 26%, from a £760 per year tariff available in September 2016 to a £959 tariff today. This is followed by SSE, whose cheapest fixed deal was £782 in September and is now £970. With a difference of £143 between the average big six cheapest deal and the cheapest fixed deal on the market, there are significant savings to be made by shopping around.
Table 1: Big six energy supplier’s cheapest deals in September 2016 and January 2017
|Cheapest tariff September 2016||Cheapest tariff 23rd January 2017|
|Supplier||Name||Price||Name||Price||Difference (£)||Difference (%)|
|E.ON||E.ON Saver Fixed 1 year v1||£760||E.ON Saver Fixed 1 Year v5||£959||£199||26%|
|npower||Online Fix September 2017||£801||Online Price Fix February 2018||£971||£170||21%|
|EDF||Simply Fixed October 2017||£849||Blue+Price Protection Jan 18||£967||£118||14%|
|SSE||SSE 1 Year Fixed v8||£782||SSE 1 Year Fixed v9||£970||£188||24%|
|ScottishPower||Online Fixed Saver November 2017||£820||Online Fixed Saver March 2018||£952||£133||16%|
|British Gas||All current British Gas plans||£1,044||All current British Gas plans||£1,044||£0||0%|
Source: uSwitch.com. Prices correct as of 23rd January, 2017
EDF Energy is so far the only big six provider to announce a price rise on its standard tariff – affecting nearly two million customers. The provider’s standard variable tariff will rise by 8.4% on electricity but its gas prices have been cut by 5.2%. This will add approximately £13 to a household’s dual fuel bill and equals a total additional payment of £24 million for its standard variable customers.
Meanwhile, the previously announced price freezes from other big six suppliers British Gas, SSE and E.ON are due to come to an end in the spring.
At the same time, 13 small and medium suppliers have increased the price of their standard variable tariffs by an average of 9% or £87 since October. Suppliers announcing increases include Co-operative Energy, Ecotricity, Octopus Energy, Flow, So Energy, Bulb, OVO, LoCo2, Bristol Energy, Places for People and Avro.
Price rises are being blamed on the increasing wholesale cost of energy, which last summer started climbing at its fastest rate in years. uSwitch.com is urging all consumers to stay one step ahead of their energy supplier by switching to a fixed deal which will protect them from energy bill shocks over the coming year.
Emma Bush, uSwitch.com energy expert, says: “Consumers have been facing climbing energy prices for several months, but 2017 could see bills soar further. The cost of both standard and fixed deals continues to rise, and the respite provided by some suppliers’ price freezes will soon come to an end. If you are worried about a sky-high bill, you can take action now and switch to save up to £618.
“Switching to a fixed deal will help consumers stay one step ahead of their energy provider – but only if they act now. Every home should take a few minutes to check that they are on the best deal possible and switch to a cheap fixed deal before they disappear.”
Find out how you could save over £1,000 a year with uSwitch here.