What do the latest UK energy price rises mean for you?

You may have read in the news recently that 5 of the UK’s ‘Big 6’ energy providers have announced price increases for customers, who are currently on standard variable tariffs. British Gas are the only provider of the top 6 who have instead decided to freeze prices until August.

 UK energy price rises

Are you affected?

According to Ofgem around 66% of us have never switched our energy provider, therefore are most likely on standard variable tariffs. If this is the case, you could be one of the estimated 12 million customers affected by these imminent price hikes.

Although the prices are nationwide, each individual supplier has varying concentrations of customers in certain parts of the country. This means that certain regions will be affected more than others, ultimately the regions with a greater number of customers will experience a higher percentage price increase.

 

Should you switch your provider?

The recent price increases mean that some electricity tariffs have increased by as much as 15%, far surpassing the rise in gas prices. This means you could now potentially be paying 15% more for exactly the same quantity of electricity. Interestingly, those in the South of England could stand to save the most, at an astounding £390 annually.

Stephen Murray, an energy expert for MoneySuperMarket, commented on the news:

“The message is loud and clear for the millions of people hit by Big Six price rises: shop around if you’re on a standard variable tariff, or if you’re on a fixed deal that’s coming to an end. Collectively, customers could save £7.4bn by standing up to the prices rises and shopping around- that’s well worth the seven minutes it takes to switch deals.

To put it simply, the average saving to be made from switching is an estimated £398.23, so it is definitely worth considering shopping around.

For more information on how your area will be affected you can check out the full report from MoneySuperMarket .

 

 

 

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