February 21, 2017
2017 is off to an expensive start for consumers, with 3 of the UK biggest energy suppliers announcing price increases.
There was some good news for customers of British Gas. The supplier announced earlier this month that it's keeping its current gas and electricity prices the same until August 2017. The "Big Six" Energy Supplier claims it is able to freeze energy bills in the face of higher wholesale prices by cutting costs.
So far, British Gas is the only supplier to announce a price freeze that will take customers through until the summer with SSE and E.ON saying that prices will remain the same for customers until April 1st 2017.
Customers with Scottish Power, Npower and EDF Energy can all expect higher than normal bills from March:
• Scottish Power's standard electricity prices will increase by an average of 10.8% and gas prices by 4.7%. About one third of its customers - 1.1 million people - will be affected by the change.
• Npower is raising its standard tariff electricity prices by 15% from 16 March, and gas prices by 4.8%.
• EDF Energy cut its gas prices by 5.2% in January, but its electricity prices are due to rise by 8.4% on 1 March.
Announcing the price increases, Colin McNeill, UK retail director for Scottish Power said: "This price change follows months of cost increases that have already led to significant rises in fixed price products that now unfortunately have to be reflected in standard prices."
In a statement, energy regulator Ofgem said: "We would urge consumers to take advantage of the deals available from the many different suppliers and to shop around for a better deal if their supplier puts up their prices. This will put pressure on all suppliers to ensure they run their businesses efficiently to keep any impact on bills as low as possible."
When Npower announced its price rises, Ofgem told the supplier to "justify" to its customers why it was introducing one of the largest increases for years.
Energy price rises are likely to fuel inflation concerns.
Rising air fares and food prices helped to push up UK inflation to 1.6% in December, its highest rate since July 2014.
The only way to stop the price hike is to shop around, see what you could save by comparing energy suppliers today. Energylinx offer a free and impartial online comparison and switching service. If you would rather speak to one of our advisors, our call centre is open Monday to Friday 09:00 - 08:00, Saturday 09:00 - 17:00 and Sunday 10:00 - 17:00.
Posted on February 21, 2017 at 03:21 PM