Energy firms join British Gas in hiking bills to match price cap
19th February 2021 | Residential Energy
Millions of households will pay more for their electricity and gas from 1 April unless they switch away from expensive tariffs. Major energy suppliers, EDF, Npower and Scottish Power are among those that have followed British Gas and announced increases in their standard variable rate or “default” tariff prices.
Bills will increase in line with industry regulator Ofgem’s new energy price cap, which dictates the maximum amount per year an energy provider can charge a customer on a default tariff. As of April 2021, the cap will rise by £96, from £1,042 to £1,138 for household on a standard variable tariff and by £87 to £1,156 for prepayment meter users. The figures quoted are for typical families – the actual level of the cap and the size of bills received will vary according to usage.
Households that have not switched for two or more years or which have never switched are likely to be on default variable rate tariffs. According to Ofgem, 11 million UK households are on such tariffs, with four million using prepayment meters. Energy providers can choose how close to the energy cap they set their prices. For example, British Gas will raise the price of its standard variable rate tariff from £1,0141 to the new level of the cap, £1,138.
EDF, Npower and Scottish Power dual fuel (gas and electricity on the same bill) customers can expect the following changes:
- Typical prices will increase by £96 per year from £1,1042 per year to £1,138 per year for customers who are on a default/ variable tariff
- Typical prices will increase by £87 per year from £1,069 per year to £1,156 per year for pre-pay customers.
- The cheaper alternative to a variable rate tariff is usually a fixed-rate deal, where the price per unit of energy is locked in for a fixed period – normally 12 or 24 months.
More information available on the website below
https://www.forbes.com/uk/advisor/personal-finance/2021/02/19/energy-firms-join-british-gas-in-hiking-bills-to-match-price-cap/