February 14, 2019
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 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's became the second energy supplier to announce a 10% price hike, impacting 1.3 million of their customers.
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
"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