January 28, 2016
SSE has announced that it will decrease the cost of gas for their standard tariff customers. An average price decrease of 5.3% will save SSE gas medium users an average of £32 a year.
The price drop comes in to play at the end of March, with many critics questioning whether this is enough and if it comes at the right time, after winter has ended.
The "Big 6" energy suppliers have been under immense pressure to drop energy costs, in line with the wholesale prices that continue to downward spiral. SSE's announcement follows E.ON price reduction last week.
Of today's announcement, Energy and Climate Change Secretary, Amber Rudd, said
"I'm absolutely clear that the market must provide a fair deal for consumers and that's why I've been pressing energy companies to put their customers first and pass on savings to them.
SSE has taken a step in the right direction and I urge other suppliers to follow suit.
The Government is also taking action to keep bills low by making it easier and quicker to switch, rolling out smart meters to every home and business, and increasing competition in the energy market."
Dermot Nolan, Chief Executive of Energy Regulator OFGEM, said:
"This is a move in the right direction, but if the market is as competitive as suppliers claim, we would expect to see further price cuts."
However, these welcomed price cuts do not fall in line with the dropping wholesale cost of gas, which in the last year has fallen more than 30%.
On the same day that SSE announced a price cut, they all announced a loss of 300,000 in the first nine months of the financial year, but it maintained its dividend and earnings per share targets for the full year.
SSE's has said that their customer accounts fell to 8.28 million as of Dec. 31. This has been put down to reflecting a wider trend of British energy users switching away from the largest energy providers for more competitive prices.
Posted on January 28, 2016 at 03:36 PM
January 22, 2016
Last week pressure mounted on the "Big Six" for failing to bring down energy prices, despite the dropping wholesale cost.
This week, in a welcomed move, E.ON became the first supplier to announce a headline grabbing 5.1% gas price cut. This will benefit the 2 million customers on E.ON's Standard Tariff, but what does this really mean for the suppliers average customer?
Across the board, medium usage customers will save an average of £32 per annum. For Dual Fuel customers on E.ON's standard tariff, this is actually a 3% price drop from what they are currently paying for their energy.
For an accurate example, if you are a medium user on E.ON's Standard Tariff and living in London then you will see an overall price decrease of 2.99%. If you are in Liverpool it will be a 2.85% drop. The table below will let you see how it affects you, wherever you are.
BUT WAIT, YOU COULD SAVE MORE
Whilst any price decrease is appreciated, if customers currently on E.ON Standard Tariff moved to the supplier's Fixed 1 Year v19 Tariff, on average they would see a 27% price decrease. Simply by switching the tariff they are on!
A medium user in London would save over £270 a year, in Manchester over £285 and Aberdeen over £300. The table below outlines the difference in price between E.ON's Standard Tariff and E.ON's Fixed 1 Year v19 Tariff.
COMPARE AND SWITCH
There is a number of very competitive tariffs on the market right now. Customers on ANY supplier's standard tariff could save a considerable amount by switching.
A simple comparison will show you how much you could save. Energylinx offer a free and impartial comparison and switching service. Click here to be taken to our energy calculator or if you would prefer, give one of our helpful energy advisers a call on 0800 849 7077.
*Savings are based on OFGEM's average domestic energy consumer using 3,100 kWhs of electricity and 12,500 kWhs of gas per annum.
Posted on January 22, 2016 at 11:30 AM
January 20, 2016
E.ON have announced a 5.1% drop in their gas price, for the 2 million customers on their Standard Tariff. Coming in to effect on February 1st, the price decrease knocks £32 off the average annual bill.
In recent week's politicians, OFGEM and poverty campaigners called for the "Big Six" energy suppliers to cut their prices in line with the fall in the price of crude oil and gas over the last year. So far, E.ON are the only one of the large suppliers to decrease their prices in the last 6 months.
However, E.ON defended the lack of price reductions. As large energy suppliers have to take in to account factors other than wholesale prices.
As a result Tony Cocker, E.ON'S Chief Executive, defended the 5.1% price drop:
"The underlying position is that whilst the price we pay for our customers' energy has fallen, we also have to take account of managing the various other risks in the market which can change, and the fact that many of the other costs that we don't control - but do have to bear - have increased or may increase.
Once you've built in various uncertainties and other factors, while the wholesale market movements may translate across to a dual fuel domestic bill for a drop in prices of under 10%, the inclusion of those other factors translates the percentage to the standard gas cut announced today"
The average annual bill for customers on E.ON's standard tariff is now £1047 for those who pay by direct debit. E.ON have also launched a new tariff, E.ON Energy Fixed 1 Year. This tariff has an average annual price of £783 and today, this is the cheapest tariff on the market. So, those on E.ON's standard tariff could benefit further, simply by changing their price plan.
Commenting on E.ON's price announcement, Energy Regulator, OFGEM's CEO Dermot Nolan said:
"This is a step in the right direction and it is good to see some movement in energy prices for consumers. We have consistently called on suppliers to explain why retail prices are not falling and this price cut goes some way towards addressing that challenge."
The Energy Market has been under extreme scrutiny over the last 18 months, as the Competition and Markets Authority has been investigating the energy market. The final report is due in April of this year.
Posted on January 20, 2016 at 11:28 AM
January 18, 2016
For the fifth year in a row, smaller suppliers have left the "Big Six" in their shadow, having again topped the table for the Which? Energy company satisfaction customer service survey.
Three of the "Big Six" failed to meet the overall average customer satisfaction score of 53% with Npower (for the 6th year running) achieving the lowest score with 41%. Npower was closely followed by Scottish Power (44%), The Co-operative Energy (45%), Extra Energy (47%) and SSE (52%).
The other Big Six providers - Eon (53%), British Gas (54%) and EDF Energy (55%) were only just above the average customer satisfaction score.
OVO Energy were number one with a score of 82%, closely followed by Good Energy (81%) and Ecotricity (77%).
Which? are currently running a "Fairer Energy Prices" campaign. This has called for the Competition and Market Authority (CMA) to fix the energy market and ensure that energy suppliers are providing an improved service to their customers. The Which? Survey looks at how suppliers deal with complaints, customer service, value for money, how useful the supplier is in helping customers save energy and ensuring that bills are clear and accurate. From the latest survey results, it is clear that too many suppliers are failing on the basics.
Which? Executive director, Richard Lloyd, said:
"Once again the smaller energy suppliers are leading the way when it comes to customer satisfaction, leaving the Big Six providers in their wake. With energy customers facing big bills this winter, energy companies need to up their game and provide the service their customers deserve.
We hope the competition inquiry into the energy market proposes radical ways to shake up the energy market and find ways to ensure millions of people can switch to better deals while also protecting vulnerable customers from paying over the odds."
The research conducted by Which? was interesting to read. Despite a high level of dissatisfaction with bigger energy suppliers, 87% of the 8,902 respondents survived, remain with the "Big Six" and only 10% have switched their energy supplier in the last year.
Energy UK, the trade association for the UK energy industry representing over 80 suppliers and generators of electricity and gas for domestic and business consumers, commented on the Which? Survey.
"Customer service is very important for energy suppliers. Companies work hard to get things right and, when things do go wrong, most complaints are dealt with by the end of the next working day. The majority of complaints are about billing and the roll-out of smart meters will improve this.
There are now 34 suppliers operating in the market and there are deals and services to suit every customer so it pays to shop around. Almost 4 million people switched in 2015 and 338,253 in December showing that it is now quicker and easier for customers to switch."
If you aren't happy with your current supplier, you don't have to stay with them. Energylinx offer a free energy comparison and switching service. Click here to be taken to our impartial energy calculator and see what you could save today.
Posted on January 18, 2016 at 04:36 PM
January 15, 2016
The pressure on Energy Suppliers to lower prices continues, as Regulator OFGEM claims that energy companies are "overcharging in many cases" with prices failing to fall in line with dropping wholesale costs.
This falls on the back of a bad week for for energy suppliers, with the issue being addressed in the House of Commons. During Prime Minister question time, David Cameron was forced to admit that "energy prices were not falling as fast as we would like" after it emerged that wholesale gas prices have fallen 30 per cent in the past year, with electricity down nearly a quarter.
Those on variable tariffs are the worst effected, with little seeing the impact of falling wholesale prices being reflected in their energy costs. Where we should be seeing bigger cuts in prices, the reality is customers have only seen a 3% fall in their prices over the last year.
Richard Lloyd, Which? Chief executive, said:
'It's extremely disappointing millions of us are still paying way over the odds for our energy. Consumers will rightly ask why their bills haven't been cut dramatically when wholesale costs have dropped. The government needs to protect vulnerable customers from being ripped off and make people feel confident about switching supplier.'
Temperatures have plummeted this week and a survey on Wednesday found that three in five elderly people will ration their heating this winter amid fears over high energy bills. This is not an acceptable solution and customers are being urged to switch energy suppliers and benefit from a cheaper, fixed rate deal.
3.8 million Households switched in 2015, so there is no need to be left out in the cold! Find out the best energy tariff for you today. Energylinx provide a free and impartial comparison and switching service. Click here to be taken to our energy calculator.
If you would prefer to speak to one of our energy advisors, please call 0800 847 7077. We are open Monday to Thursday 9am-8pm and Friday 9am-6pm.
Posted on January 15, 2016 at 12:20 PM
January 13, 2016
Npower have launched their new online Price Fix February 2017 tariff. Any customers who switch to this tariff will have their electricity and gas prices fixed until 28th February 2017. The tariff is an online tariff, available to customers that pay by monthly or quarterly direct debit.
Online tariffs helps customers avoid a pile-up of unwanted paper bills by managing their account online to view bills, make payments, submit meter readings, track their energy usage and update their personal details.
As with any energy tariff, terms and conditions apply, for example any customers who sign up this tariff and choose to leave earlier than their contract end date will have a £20 exit fee per fuel.
Looking to switch to your energy supply to Npower on their Online Price Fix February 2017? Click here to be taken to our free and easy-to-use comparison and switching tool.
Posted on January 13, 2016 at 12:19 PM
January 6, 2016
Energylinx make switching your energy supplier easy. All you need is your postcode, your current supplier, the tariff you are currently on and your annual energy consumption. All that information should be on your bill or annual statement. Don't worry if you don't have this, Energylinx can still compare prices for you because we can estimate your annual energy use based on your family size, house type and number of rooms.
The application process takes a matter of minutes online, or if you would rather speak to one of our knowledgeable energy advisers, they would be more than happy to help you. Just call 0800 249 7077. Your energy supply will be switched over after 17 days and it won't affect your current supply. If you are in a credit with your current supplier then they will refund you after the switch. It really is that easy and could save you a small fortune!
Posted on January 6, 2016 at 11:23 AM