Over half of British households could see an increase in the cost of energy in April after Ofgem raised price caps.
The top energy suppliers are due to increase their prices by £117 for around 11 million households that are on default or standard variable tariffs. A typical household on these tariffs should expect to pay £1,254 per year.
Dermot Nolan, chief executive of Ofgem said:
“We can assure these customers that they remain protected from being overcharged for their energy and that these increases are only due to actual rises in energy costs, rather than excess charges from supplier profiteering.”
Why are prices rising?
Prices are rising because Ofgem is allowing suppliers to charge more to cover the higher wholesale costs they face owing to the higher global price of oil. Wholesale costs account for more than a third of a typical energy bill.
The regulator considered the costs faced by suppliers in the six months to the end of January when setting the new cap for April.
People are more aware than ever of the benefits of switching. 2018 was a record year, with more than 5.8 million changing their energy supplier. We specialize in energy switching in energy switching and can help your tenants when moving into their properties with choice of market and a 5* Trustpilot customer service record.
It’s important to remind tenants that switching suppliers and shopping around can help to save them money considering the upcoming changes to the cap.
John, A – Utility Week. (2019). Energy switching figures hit new record in 2018. Accessible: https://utilityweek.co.uk/energy-switching-figures-hit-new-record-2018/. Last Accessed: 13 February 2019.
Peachey, K – BBC News. (2019). Energy prices to increase for millions as Ofgem raises cap. Accessible: https://www.bbc.co.uk/news/business-47133564. Last Accessed: 8 February 2019.
Vaughan, A – Guardian. (2019). Energy bills to rise by more than £100 for 15m households as price cap lifted. Accessible: https://www.theguardian.com/business/2019/feb/07/energy-bills-to-rise-by-more-than-100-pounds-for-15m-households-as-price-cap-lifted. Last Accessed: 8 February 2019.