Energy prices set to soar for millions of Britons from April

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  • #139034 Reply
    Brydo
    Participant

    Energy prices for millions of Britons will likely rise from April after the energy regulator said it would increase its cap on the most widely used tariffs by around 9.2%.

    A cap on electricity and gas bills came into effect in January 2019 and was aimed at ending what former British Prime Minister Theresa May called “rip-off” prices by energy firms.

    Regulator Ofgem said the rise was needed due to an increase in wholesale energy prices over the past few months and as energy suppliers would be allowed to begin recouping costs relating to the coronavirus pandemic.

    Wholesale gas and electricity prices fell last year as measures to limit the spread of the coronavirus led to a shut down of much of the economy, leading to lower energy demand.

    “Demand for energy has since recovered which has pushed wholesale prices back up to more normal levels,” Ofgem chief executive Jonathan Brearley said in a statement.

    The cap for average annual consumption on the most common tariffs, used by around 11 million households, will rise by 96 pounds ($131) to 1,138 pounds, while for some 4 million homes on pre-payment energy meters it will rise by 87 pounds to 1,156 pounds a year.

    Ofgem calculates the cap using a formula that includes wholesale gas prices, energy suppliers network costs and costs of government policies, such as renewable power subsidies.

    Earlier this week Ofgem said it would include a provision worth 23.69 pounds in the latest cap level to enable suppliers to begin recouping costs relating to the coronavirus pandemic, such as money lost due to defaults on payments.

    Brearley said despite the rise the price cap was likely to be saving customers around 100 pounds a year but said the best way to save the most money was by switching to a cheaper tariff. ($1 = 0.7312 pounds) (Reporting by Susanna Twidale; editing by Jason Neely and Toby Chopra)

    The only person who got all his work done by Friday was Robinson Crusoe.
    Anything i post over three lines long please assume it is an article lol.

Viewing 8 replies - 1 through 8 (of 8 total)
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  • #139069 Reply
    Wigwam
    Participant

    “Ofgem calculates the cap using a formula that includes wholesale gas prices, energy suppliers network costs and costs of government policies, such as renewable power subsidies.”

    These costs amount to 25% of the price we pay for electricity.

    #139548 Reply
    Martinod

    People are struggling as it is , yet big companies are going to put the price up yet again .

    how much profit is enough,   so what do people do they need the gas/electricity no matter what price goes up to . If people are struggling  just know then the price goes up they have a few choice  have to pay the extra by using money from something else usually food or decide not to put the heating on and sit in the cold.

    one of neighbours a disabled lady in her 70s was paying £50 a month and they put the payment up to £65 month side was so worried about it , so what did she do sat in her chair in the cold because she couldn’t afford to have the heating on .

    im not saying heating should be free ( I think it is in other countries for older people) but these complains making millions  of profit and old people free zing to death.

    I just don’t think it fare

     

    #139585 Reply
    Wigwam
    Participant

    Actually Martinod, there’s not a lot of profit for energy companies, it’s a very competitive market but you do have to shop around for deals each year and be prepared to change suppliers.  Anyone paying standard variable tariffs to British Gas and the like will be paying too much.

     

    #139597 Reply
    Donkey Oatie

    Seems like as we go further down the route of electric cars, electric heating replacing oil and gas and wood being banned as a fuel in all but rural areas, we will be more and more at the mercy of the generating companies.

    #139611 Reply
    Wigwam
    Participant

    And the weather, unless we start building nuclear plants.

    #146982 Reply
    ChrisK
    Participant

    Warning this is long…🤷‍♂️

    Didn’t want to start a new thread and thought this one would be a good place to say what I’ve stumbled on this week using energy compare sites.

    Did you know that your neighbour or anyone with your postcode can find out online what energy provider you use and how much you spent on gas and electric in the previous year.

    Came as a bit of a shock to me to think my neighbours could look up my business online, I say that but its only fair I now know who or what companies the whole street uses and how much they spend.

    My billing is about £1,300 per year my neighbour to my left use £1,600 and is with SSE and the one to my right is a whopping great big £2,100 and uses British Gas. What would you think the neighbour would say if I was to tell them I could save them a packet.

    So how do I get this information I hear you say, well as we know when you use comparison sites it asked how much energy you use in a year, gas and electric, and you input the that information from your current bills or energy supplier.

    Now when I did this yesterday on two separate compare site it said don’t worry if you don’t know how much you use because we can input that for you from your energy provider and sure enough it did accurately put in my usage for last 12 months.

    So I’m thinking how did they do that because apart from giving them my postcode and house number they don’t know me from Adam. Just to check I imputed half the postcodes that are the same as mine but changing the house number and there it is, their energy consumption and cost.

    Don’t know how long this has been going on but to me it feels like an invasion of privacy but sure to be legal and really it gives energy providers the upper hand in knowing that if your being screwed by your current supplier new supplier can give you a hundred quid back and continue screwing you while your thinking your getting a better deal.

    Am I being silly, I think not and anyone wanting to know their energy usage for the past year just give me your postcode, no house number needed, and will tell you here.😊

    #146991 Reply
    Wigwam
    Participant

    If this is true it is absolutely a breach of GDPR.

    #147485 Reply
    Phaedra
    Participant

    Just had my renewal notice.

    Currently with Avro Energy and paying £76pm and always over £100 in credit.

    Renewal price is £92pm, an increase of 21% 🙁

    I checked on Martin Lewis’s Cheap Energy Club (who I usually use) and that’s about £8pm cheaper than any of the other fixed price tarrifs on offer.

    There's room for all God's creatures, right next to the mash and gravy 🙂

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