August 7, 2018
Ofgem has increased its prepayment energy price cap due to rising wholesale prices. The regulator has said that as of October, its safeguard tariff will rise by £47 a year to £1,136 (based on average and typical use).
The prepayment price cap launched in April 2017 and was designed to protect the five million households who prepay for their energy from being overcharged. The price cap was initially set at £1,050 then lowered to £1,031 in October 2017, before being increased to £1,089 earlier this year.
Ofgem has stated that they are increasing the price cap due to rising oil prices which has led to an increase in wholesale gas prices.
Dermot Nolan, chief executive of Ofgem, said:
"Any price rise for customers is unfortunate. But while the level of the tariff will rise in October, these customers can be confident that this increase is justified and that their energy bill reflects the real cost of supplying gas and electricity. There are also better deals on the market for those who want to save even more money by switching."
2018 Energy Price Increases
The rise to the prepayment cap comes after a series of price increases from the energy suppliers over the summer, affecting millions of households.
All the "Big Six" energy suppliers have hiked energy prices this year; British Gas, EDF, E.ON, Npower, ScottishPower. So far this year a lot of smaller and mid-tier energy suppliers have also increased their energy prices including; Octopus, First Utility, Utility Warehouse and Co-operative Energy.
What does this mean for me?
If you are affected by the recent price hikes from the UK's biggest energy suppliers then our message to you is simple - it's time to compare energy suppliers.
Energylinx offers a free and impartial energy comparison and switching service. You can see what you could save on our website or by calling 0800 849 7077 and speaking to one of our energy advisors who will help you find the best energy prices for your home. Our call centre is open Monday to Friday 9am to 6pm and Saturday 9am to 3pm.
Posted on August 7, 2018 at 10:24 AM