Energylinx News

February 14, 2019

Energy Prices to Rise for 11 million UK Households

Energy prices are set to rise for millions of customers after the energy regulator, Ofgem, revised the level of the energy price cap.

The move will add £117 a year on to the cost of standard variable tariff for an average* customer, taking prices from £1,137 to £1,254. The new prices are set to go live on 1st of April.

Ofgem announced the increase to the energy price cap last week. Since the beginning of this week, three of the "Big Six" energy suppliers in the UK have put up their energy prices, with many more suppliers expected to follow.

Which energy suppliers have announced an energy price increase?

If you are an Npower, E.ON or EDF Energy customer you can expect your energy bills to rise from 1st of April. British Gas, ScottishPower or SSE customer? Keep your eyes on the news as we expect your price increase to be announced shortly.

E.ON

E.ON were the first energy supplier to announce they are putting prices up a whopping 10%, affecting 1.8 million of their customers currently on their standard variable tariff.

EDF Energy

EDF Energy's became the second energy supplier to announce a 10% price hike, impacting 1.3 million of their customers.

Npower

Npower is the latest energy supplier to announce the price increase. This will affect 1 million households - around 40% of Npower's customer base.

How to avoid the energy price hike

If you are currently on a standard variable tariff or deemed tariff with your energy supplier, then you are paying too much. Right now, on the Energylinx website, our customers can sign up to a fixed-term energy deal with Utility Point that is £274 cheaper than the new price cap level for an average energy user.

Energylinx offers a free and impartial comparison and switching. You can compare energy suppliers online or by calling 0800 849 7077 and speaking to one of our lovely energy advisors. We are open Monday to Friday 09:00 to 18:00 and on a Saturday 09:00 to 15:00.

*An average energy user uses 3,100 kWhs for electricity and 12,000 kWhs for gas - as per Ofgem averages.

Posted on February 14, 2019 at 09:47 AM

February 1, 2019

Npower to cut 900 jobs

"Big Six" energy supplier, Npower, plans on cutting 900 jobs to save costs. This is about 15% of Npower's 6,300 strong workforce.

Npower has said that it is too early to confirm which part of its workforce would be affected by the cuts. Although, a spokesman for the supplier has said it was aiming to preserve its customer service support team.

Chief executive of Npower, Paul Coffey, said

"Even with these reductions, we still forecast significant losses this year, but we're doing everything we can to minimise them whilst continuing to focus on service and value for our customers"

Npower has stated that the number of redundancies would be "considerably lower" because of natural turnover.

What has gone wrong?

Npower has blamed "an incredibly tough" retail energy market for the decision and the energy price cap which the government introduced at the start of January.

The energy price cap has been designed to keep energy bills below £1,137 a year for a "typical energy user" (a household that uses 3,100 kWh of electricity 3,100 and gas 12,000 kWh of gas). The annual cost will always depend on a household's energy usage, but the standing charge and unit prices that suppliers can charge are currently capped by Ofgem.

It was introduced to stop people who did not switch energy supplier being stuck on expensive default deals. As well as the pressure it is putting on energy suppliers, there are fears it could have a negative impact on how customers engage with the energy industry and discourage people from comparing energy suppliers and switching to cheaper fixed-term deals.

Energy regulator Ofgem has said the cap will save 11 million customers an average of £76 a year on their gas and electricity bills.

Many energy suppliers, including British Gas, have said the energy price cap has made the market unviable with several small to medium energy firms collapsing since it was announced. Two during the month that it took effect.

Npower had planned to merge its retail business with fellow "Big Six" SSE last year, but the firms scrapped the plan after the energy price cap was announced. In terms of customers, it would have created the second largest energy company in the UK. The largest energy company in the UK is British Gas.

The merger would have seen SSE's household energy division, SSE Energy Services, combined with the retail operations of Npower, which is owned by Germany's Innogy.

Posted on February 1, 2019 at 11:06 AM

January 25, 2019

Our Power Ceases Trading

our power.png Our Power, an energy supplier with about 38,000 domestic customers, has ceased to trade.

Our Power is the 10th energy supplier to go bust in the last 12 months.

Under Ofgem's safety net, the energy supply of Our Power's customers will continue, and pre-payment meters can be topped up as normal. The outstanding credit balances of domestic customers will be protected.

Ofgem will choose a new supplier to take on Our Power's customers as quickly as possible. This supplier will contact these customers shortly after being appointed.

Ofgem's advice to Our Power's customers in the meantime is:

• Do not switch to another energy supplier.
• Take a meter reading ready for when your new supplier contacts you.

This will make the process of transferring customers over to the chosen supplier, and paying back their outstanding credit balances, as smooth as possible.

Philippa Pickford, Ofgem's director for future retail markets, said:

"Our message to energy customers with Our Power is there is no need to worry, as under our safety net we will make sure your energy supplies are secure and your credit balance is protected."

"Ofgem will now choose a new supplier for you, ensuring you get the best deal possible. Whilst we're doing this our advice is to 'sit tight' and don't switch. You can rely on your energy supply as normal. We will update you when we have chosen a new supplier, who will then get in touch about your new tariff."

"We have seen a number of supplier failures over the last year and our safety net procedures are working as they should to protect customers."

Posted on January 25, 2019 at 12:14 PM

January 24, 2019

Npower Launch Cap Tracker 2020

On the back of the Energy Price Cap, Npower has launched a new tariff that will always be 6% lower than the Ofgem Default tariff cap.

The initial prices are based on a 6% discount to the Ofgem Default tariff cap prices effective from 1st January 2019. Ofgem will review the cap every 6 months. The next review is in February and will go live on 1st of April.

Prices can go up or down to reflect the changes to the energy price cap, but any customers on Npower's Cap Tracker 2020 will always be charged 6% less than the cap prices. Npower will notify any customers about any changes to their energy prices.

What is the Energy Price Cap?

The energy price cap will limit how much energy suppliers can charge customers per unit of energy. Ofgem has calculated what energy suppliers needs to spend to get energy to your home and based the cap on that.

Who is Npower?

Npower is one of Britain's "Big Six" energy suppliers, and is part of the Innogy group, one of Europe's leading electricity and gas companies.

Npower serves around 4.84 million residential and business accounts with electricity and gas.

Key Features of Npower's Cap Tracker 2020

• With Npower's Cap Tracker September 2020 tariff and your prices will be 6% lower than the Ofgem Default tariff cap until 30th September 2020.
• Variable discount off your standing charge and unit rate, depending on how much energy you use, when paying for both electricity and gas by Direct Debit.
• No early exit fees.
• Customer will receive a discount for paying by Direct Debit. Direct debits will be reviewed every 6 months to ensure customers are paying the correct amount.

Npower's Cap Tracker 2020 is available for switching through Energylinx. You can either do a comparison on our website or by calling 0800 849 7077. Our contact centre is open Monday to Friday 9am - 6pm and Saturday 9am - 3pm.

Posted on January 24, 2019 at 08:01 AM

January 21, 2019

Record Year for Energy Switching

Energy UK has announced the electricity switching figures for 2018 and it was a record-breaking year.

To mark the start of Big Energy Saving Week, Energy UK has said that 5.8 million customers switched over the 12-months of 2018 - a 6% increase on the number of switches that were arranged in 2017.

This means 1 in 5 households switched electricity suppliers during 2018, with nearly half a million energy switches arranged every month on average.

This continues the trend of year-on-year increases in energy switching and high levels of engagement, particularly when compared to other industries. A survey by GoCompare found that during 2017 energy was in top 3 switching sectors during 2017 with a 19% switching rate, ahead of broadband, mobile (both 11%).

In December alone, nearly half a million customers (464,378) switched supplier, up 10% on December 2017. The figures show that 21% of all switches in December went to small or mid-tier suppliers last month, with nearly 100,000 customers (98,962).

Consumers continue to have confidence in switching according to the latest research from the Energy Switch Guarantee - an industry initiative that makes switching simple, speedy and safe.

Lawrence Slade, chief executive of Energy UK, said:

"It is positive to see such high levels of energy switching - particularly when compared to other sectors - with one in five customers switching supplier in 2018. My hope remains that, with the recent introduction of the price cap, we don't see this element of competition undermined and switching levels fall, as is predicted in Ofgem's impact assessment.

"With winter in full swing, I urge everyone to get in touch with their supplier or have a look online to make sure they are on the best energy tariff for them, whether that be on price, service or green considerations. More importantly, as the temperatures fall, consumers should ensure their house is energy efficient - for example checking that it is well insulated - which is the best way to keep energy bills down in the long run."

Energylinx offers a free and impartial energy comparison and switching service. You can compare energy suppliers on our website or by calling 0800 849 7077. We are open Monday to Friday 9am to 6pm and Saturday 9am - 3pm.

Posted on January 21, 2019 at 10:37 AM

January 8, 2019

Economy Energy ceases trading

Economy Energy, an energy supplier with about 235,000 domestic customers, has ceased to trade.

Economy Energy entered into the energy market in 2011.

Under Ofgem's safety net, Economy Energy's customer energy supply will remain unaffected and prepayment meters can be topped up as normal. If you currently have a credit balance with Economy Energy, this will be protected.

Ofgem will choose a new supplier to take on Economy Energy's customers as quickly as possible. This supplier will contact these customers shortly after being appointed.

Ofgem's advice to Economy Energy's customers in the meantime is:

1. Do not switch to another energy supplier.
2. Take a meter reading ready for when your new supplier contacts you.
3. This will make the process of transferring customers over to the chosen supplier, and paying back their outstanding credit balances, as smooth as possible.

Posted on January 8, 2019 at 01:14 PM

January 4, 2019

Ofgem bans Economy Energy from taking on new customers

UPDATE: Tuesday 8th of January

Economy Energy, an energy supplier with about 235,000 domestic customers, has ceased to trade.

Under Ofgem's safety net, the energy supply of Economy Energy's customers will continue and prepayment meters can be topped up as normal. The outstanding credit balances of domestic customers will be protected.

Ofgem will choose a new supplier to take on Economy Energy's customers as quickly as possible. This supplier will contact these customers shortly after being appointed.

Original Story

The energy regulator, Ofgem, has issued a provisional order banning Economy Energy from taking on any new customers.

The Coventry based energy has also been banned from increasing existing customers' direct debits or asking for any one-off payments until the issues are resolved.

Before the ban can be lifted, Economy Energy must meet the following requirements:

1. Improve and expand its customer contact procedures via email and web chat
2. Address its billing and payment failures
3. Issue customer refunds in a timely manner

The ban is initially in place for up to three months to allow Economy Energy to take steps to improve their customer service issues.

If Ofgem does not see any evidence that Economy Energy has attempted to make improvements within three months, they can extend the ban.

If Economy Energy fails to improve Ofgem can take steps to revoke its supply licence.

Anthony Pygram, director of conduct and enforcement, said:

"Ofgem is taking action to protect customers from suffering more harm from the unacceptable level of customer service provided by Economy Energy. We expect the supplier to take immediate action to rectify its failings or face having its ban extended.

"All suppliers are required to treat their customers fairly. Where they do not, Ofgem will take the necessary steps to ensure suppliers change their behaviour and to prevent further harm to customers."

Posted on January 4, 2019 at 08:53 AM

December 21, 2018

The Energy Price Cap Explained

The energy market is currently not working for consumers who remain loyal to their energy supplier.

More than half of UK households are on their energy suppliers expensive default tariff. On average, default tariffs are around £320 a year more than the cheapest market deal.

The current UK Government pledged to cap energy prices and in November, Ofgem announced that the energy price cap would be going ahead on the 1st of January 2019.

So, what does this mean? We've written a short guide to help you make sense of it.

What is the energy price cap, and will it affect me?

The energy price cap will limit how much energy suppliers can charge customers per unit of energy. Ofgem has calculated what energy suppliers needs to spend to get energy to your home. Although, Centrica (the parent company of British Gas) has raised a legal challenge. They argue that the energy price cap has not been calculated fairly and would cost them £70m in lost operating profits in the first quarter of 2019.

Your energy prices will be capped if you use a prepayment meter, get the government's Warm Home Discount and/or are on a 'standard variable' energy tariff you haven't chosen (default).

If you are currently on a fixed-term tariff, your prices won't be fixed but you are likely on a better value deal.

If you are currently on a standard variable tariff, then you could save more money by shopping around for a better deal.

How will I know if the energy price cap applies to me?

Your supplier can tell you if you are on an energy tariff impacting by the energy price cap. They must also inform you if your tariff changes in a way that could disadvantage you or if you are a tariff that is no longer available.

Do price caps limit the total amount of my energy bill?

No. You still must pay for the energy that you use. The energy price cap won't limit your total energy bill.

For example, you might use more energy in the winter, so your bill will be more money than it has been during the summer.

The cap is on the cost per unit used. You must still pay for every unit of energy that you use.

Will the price caps change?

Every six months Ofgem will work out how much it costs energy suppliers, on average, to get energy to customers. They will then revise the cap levels to reflect this to ensure you pay a fair price and protect you against overcharging.

Ofgem will review the current price cap level in February and it will be changed on April 1st.

Are there any cheaper energy tariffs?

Yes! Most fixed-term deals will be cheaper than the energy price cap tariffs.

If you are on an energy tariff that will be capped, you would benefit more by comparing energy suppliers and moving to a cheaper, fixed-price deal.

Energylinx offers a free and impartial comparison and switching service and we will be able to find the cheapest energy deal for your home. You can find out how much you could save by calling 0800 849 7077 or by visiting our website.

Posted on December 21, 2018 at 04:04 PM

December 20, 2018

Two new Daligas tariffs on sale now

Daligas has launched two new gas tariffs; Daligas One Fix Flex 19 and Daligas One Standard Flex 19.

Both tariffs are for sale through the Energylinx website or by calling our energy advisors on 0800 849 7077.

Who is Daligas?

Daligas is an independent UK-based gas company, supplying both homes and businesses. Daligas try to keep single fuel switching hassle-free and only offer one fixed and one variable gas tariff at any given time.

Key Features of Daligas "One Fix Flex 19"

• Your gas prices are fixed for one year.
• You must pay by direct debit.
• There is an exit fee of £30 should you choose to leave the tariff early.

Key Features of Daligas "One Standard Flex 19"

• Gas prices are not fixed and can go up or down at any time.
• There is no end date to the tariff.
• There is no exit fee if you decide to switch energy suppliers.

Posted on December 20, 2018 at 08:29 AM

December 17, 2018

Npower and SSE scrap merger plan

Two of the UK's 'Big Six' energy suppliers, Npower and SSE, have said that they will no longer go ahead with their planned merger.

SSE has blamed "very challenging market conditions" for the decision.

Indications that the merger might collapse became apparent in November, only one month after it was given the final green light by the Competition and Markets Authority. Npower and SSE said they would have to renegotiate the deal after the official announcement of the government's new energy price cap.

Had the merger went ahead, it would have created the UK's second-biggest energy supplier.

Martin Hermann, retail chief operating officer of Innogy SE, which Npower is a part of, said: "Adverse developments in the UK retail market and regulatory interventions such as the price cap have had a significant impact on the outlook for the planned retail company.

"We negotiated intensively with SSE on adjustments to the transaction as announced in November 2017.

"Unfortunately, we could not reach an agreement that was acceptable for both sides. We are now assessing the different options for our British retail business."

The Energy Price Cap

More than half of the households in Great Britain are on their energy suppliers default tariff. This is because they have either never switched energy supplier or haven't done so recently.

In a bid to stop these customers from paying more than is necessary on their energy bills, the regulator Ofgem announced an energy price cap.

Ofgem's energy price cap will go live on 1st of January 2019. Energy suppliers will not be allowed to charge more than £1,137 a year for a "typical use"* customer.

Ofgem has claimed that the price cap will save 11 million customers an average of £76 a year on their gas and electricity bills.

Households on a default tariff could save money by comparing and switching to a cheaper energy deal, even after the energy price cap is introduced.

You can compare energy suppliers on Energylinx's website or by calling 0800 849 7077. One of our energy advisors will be able to find the best deal for you. We are open Monday to Friday 9am to 6pm and Saturday 9am to 3pm.

*A typical use customer is a medium user. According to Ofgem a medium user use 12,000kWh for gas and 3,100kWh for electricity. If your energy use is higher or lower than a typical user, then you will be charged accordingly.

Posted on December 17, 2018 at 11:53 AM