Energy prices set to rise as temperatures drop - Gas and electricity - News - Moneyfacts

News

Energy prices set to rise as temperatures drop

Energy prices set to rise as temperatures drop

Category: Gas and electricity

Updated: 12/10/2012
First Published: 12/10/2012

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The majority of households in the UK will have been reaching for the thermostat over recent weeks as the winter begins to close in.

News that two of the UK's biggest energy providers, British Gas and npower, are to increase energy prices will have come as a blow to many frustrated consumers, already struggling with rising living costs.

It is thought around 11 million British Gas customers will be affected by an average price rise of 6% from 16th November, driving the average monthly direct dual fuel bill up to £1,265 a year.

Director of independent price comparison service Energyhelpline.com, Mark Todd, fears the price hikes from British Gas and npower could see yet more providers follow suit.

"With two significant price rises, from two major suppliers in one day, today is black Friday for consumers.

"An average rise of 8.9 per cent for npower customers, and six per cent for British Gas customers will be a bitter pill to swallow for households facing a harsh winter of higher food prices and now, soaring energy costs.

"The increase for a typical npower customer will be £103 a year, a £61 increase on gas and £42 increase on electricity. With UK fuel bills looking to reach unprecedented heights, we are calling on the government to heed advice from the industry to increase competition and ease the burden of rising household costs.

Todd urged customers to switch to a fixed tariff to avoid their bills rising throughout the winter months.

"Many will be able to save over £175 a year and avoid any more price rises for the next two winters," he claimed.

UK's Cheapest Fixed and Variable Gas & Electricity Tariffs

Tariff
Average Cost*
Average Saving**
Fixed or Variable

Tariff Details

First utility
first:utility
iSave v12

£1,054

£316

Discounted Variable

  • Initially fixed for 3 months.
  • Paper bill available for £1 pm extra
  • £30 per fuel cancellation penalty during first 3 months.
  • No cancellation penalty thereafter.

nPower
npower
Energy Online Jan 2014

£1,071

£299

Discounted Variable

  • Rates guaranteed to be at least 3% cheaper than npower standard until 31st Oct 2013
  • £30 per fuel cancellation penalty if you leave this tariff before 31 Oct 2013

nPower
npower
Bill Saver November 2013

£1,086

£284

Discounted Variable

  • Rates guaranteed to be at least 5% cheaper than npower standard until 30th Nov 2013
  • £30 per fuel cancellation penalty if you leave this tariff before 30 Nov 2013

First Utility
first:utility
iSave Fixed v4

£1,087

£283

Fixed

  • Prices fixed until 31 March 2014.
  • Paper bill available for £1 pm extra
  • £30 per fuel cancellation penalty if you leave this tariff before 31 March 2014

OVO energy
OVO Energy
New Energy Fixed

£1,088

£282

Fixed

  • Prices fixed for 12 months
  • £30 per fuel cancellation penalty if you leave this tariff

Scottish Power
Scottish Power
Help Beat Cancer Discounted
Energy August 2015 Online

£1,118

£252

Discounted
Variable

  • Rates guaranteed to be at least 3% cheaper than ScottishPower Standard until 31 July 2015. Donations to Cancer Research UK (£15 on joining and £10 a year)

  • No cancellation penalty

Tariffs correct: 12/10/2012

*All calculations are for an average usage dual fuel household paying by monthly direct debit. Average usage as defined by OFGEM is 16,500 kWh pa of gas and 3,300 kWh pa of electricity

**based on average dual fuel tariff costing £1,370 (One SSE and BG price rises take effect)

Energy Helpline

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

British Gas freezes standard energy tariffs

British Gas has announced that it’s freezing its standard gas and electricity tariffs for the winter, ensuring that customers needn’t worry about price rises in the chilly months ahead. But is that enough to ensure households aren’t paying too much?

Living in a new home could cut fuel bills by half

Older homes will always be slightly more expensive to heat, with less insulation and sneaky draughts making these character-filled homes harder to heat efficiently. But did you know just how much more this could cost you? It could be double…

Standard energy tariffs are “fundamentally unfair”

We all know how expensive energy bills can be, particularly at this time of year when we’re all turning the thermostat up a notch. But what if you’re paying even more than you should be? If you’re on a standard tariff, that’s a very real possibility.
 
Close