Following the recent wholesale gas and electricity price rises (up 14% since May), Co-op Energy has today announced a 3% price increase on their standard tariffs costing an average customer an extra £32 a year.
GB Energy, another small supplier, earlier this summer announced a 7% price increase too.
This autumn could be chillier than expected as consumers could be facing the first season of energy price rises for three years. Co-op’s decision to raise their price is a blow for consumers and a potential sign of things to come. Suppliers are feeling the pinch of the recent wholesale price rises – fueled partly by the decline in the pound following the Brexit vote. This has forced up the price of imported gas as our pounds now buy less.
With possible, across the board, price rises on the horizon, now is a great time to get on a cheap fixed rate deal for the winter. Fixed rate deals tend to be cheap and guarantee no price rises for a fixed period often of 1-3 years. Go to www.energyhelpline.com to compare and switch.
Customers on standard variable tariffs typically overpay and are at risk of price rises. It’s not worth it. With the cheapest fixed deals below £800 and many standard tariffs around £1,050-£1,100 a year; savings are easy to make.
What could save us from across the board price rises is that wholesale energy prices are still well down on their peak of three years ago. Gas is still down 45% and electricity 23%, meaning suppliers may have money in hand to avoid hikes. Only time will tell if this is the case.