Around nine million UK customers (so far) are facing an energy price hike less than two months into 2019. Last year already saw all the Big Six suppliers make multiple price rises in anticipation of the Government’s price cap. With the default standard variable rate price cap in place since January 1st, many suppliers are already raising prices again.
The latest price hikes are due to an increase in the price cap only just introduced. That increase has been blamed on rising wholesale energy prices.
E.ON Begin New Influx of Energy Price Rises
E.ON were the first of the Big Six suppliers to raise their prices. Their approximately 1.8 million customers will be paying an additional 10% more from April. They said their price hike was in line with the Government’s raising of the default tariff price cap to £1,254.
A spokesperson for the energy giant, who gained their UK energy market share by acquiring former Coventry-based supplier Powergen, said,
“Ofgem’s energy market price cap review set out that price cap levels would increase, driven by rising wholesale and other costs.”
Even so, their default tariff will soon be £286 more expensive than the cheapest available tariff. Customers on E.ON’s standard variable tariff have understandably been advised to shop around for a better deal by industry experts.
British Gas and Scottish Power Join Price Rise Party
As soon as E.ON announced their incoming price rise, they were quickly joined by other suppliers. Scottish Power announced an identical 10% for their approximately 900,000 customers, also due to start in April. This rise amounts to around £117 per year for customers on the default standard variable tariff. Scottish Power’s pre-payment meter customers also have an incoming hike of £106, despite the similar prepayment meter price cap. EDF Energy and Npower also quickly announced 10% price rises to commence in April.
Not to be outdone by their rivals’ 10% price hikes, British Gas have decided to raise their prices by 10.5%. Nearly four million customers will be affected, with £119 added to their annual bills. The bills of British Gas’ prepayment meter customers will rise by £107.
The other major suppliers will undoubtedly be following suit with price rises to be announced soon.
Shop Around for a Better Deal
Understandably, these price hikes immediately after the cap was implemented are something of a bitter pill to swallow for customers. The cap was meant to protect customers on the default tariffs. Even worse, a significant amount of the customers on such standard variable tariffs will not be aware of their situation. Many will not know how to shop around for a better deal and will continue to pay the default rate.
However, comparing and switching has never actually been easier with plenty of online energy price comparison tools available.
To learn more about different energy suppliers and tariffs, contact Business Save and their team of highly experienced energy experts.