Energylinx News

December 2018 Monthly Archive

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

December 11, 2018

EDF launch Blue+Price Freeze Feb21

EDF Energy has launched a new energy tariff called Blue+Price Freeze Feb21.

Who is EDF Energy?

EDF Energy is one of the "Big Six" energy companies in the United Kingdom.

EDF has 5.7 million customer accounts and employs 13,331.

EDF's operations range from electricity generation to the sale of gas and electricity to homes and businesses throughout the United Kingdom.

Blue+Price Freeze Feb21 Key Features

• Energy prices fixed until 2021 ‐ No price rises guaranteed until at least 28 February 2021
• Available as a dual fuel or electric only tariff
• No exit fees ‐ EDF won't charge you a fee to leave
• Electricity 100% backed by low‐carbon generation

Energylinx customers can sign-up to the new EDF price plan through our energy comparison website or by calling our energy advisors on 0800 849 7077.

Posted on December 11, 2018 at 10:22 AM