We’re increasing our tariff for a typical home* by 9% across a dual fuel tariff. That means an average increase of £8.11 per month*.
This price change will affect existing customers on our SVT from 8th September 2018.
It will be in place for new customers from today, 14th June.
84% of our customers are unaffected, as they’re on fixed deals with us.
Why are we doing it?
We do not take any price increase lightly, and we’ll only do it when absolutely necessary. However since November 2016, wholesale electricity prices have risen by around 15% and gas by 30%. This is due to a number of factors:
- Increased uncertainty across the world, causing commodities to rise, including gas and electricity. Oil prices have increased by 50% since November 2016, largely because of conflicts in the Middle East, and ongoing tensions and trade disagreements between the USA, Europe, Russia and China
- A 300% increase in the cost of carbon certificates. Most electricity generation has some level of carbon associated with its generation, so this pushes up the cost of energy
- Significant decreases to the amount of major gas storage in the UK (Rough) and in Europe (Groningen) have caused concerns about supply
- Wholesale prices shot up in February during the ‘Beast from the East’. This has created uncertainty in the market about the UK's ability to cope with extreme weather.
Government policy costs have also increased significantly, including clean energy subsidies and the smart meter programme. We’ve worked hard to reduce our own costs, so we can absorb some of these increases and not pass them onto our customers. But even with these savings, we can’t offset the rise in the wholesale market.
How do we keep prices fair?
We monitor the energy market daily and ensure our prices are reflective of wholesale prices. We always explain why our prices are going up, in clear and simple language.
We start contacting our customers 90 days before the end of their fixed contract, to make them aware of our best deals and prevent them from slipping onto an SVT.
And we don’t charge exit fees, so customers are free to leave us at any time. And if wholesale prices go down, we’ll do our best to lower our prices too.
*using typical domestic consumption value.