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E.ON and Scottish and Southern Energy implement energy price rises, with only EDF Energy still to show its hand
Energy consumers face a black week of price rises, with increases of up to 19% being implemented on Tuesday and Wednesday.
E.ON will raise its standard tariffs by 18% for gas and 11% for electricity on Tuesday – a £114 and £56 hike over the year for the average customer. This will be followed on Wednesday by a 19% increase in gas prices and 12% in electricity from Scottish and Southern Energy (SSE). These increases are likely to cost the average customer an extra £122 and £52 a year respectively.
Five of Britain's big energy suppliers have announced increases for the second time this year, with EDF Energy the only one still to declare its intentions.
Ann Robinson of uSwitch.com says: "The impact of this recent round of price rises on households could be immense, with more rationing their energy use to keep a lid on the cost. With wholesale prices now falling, there is a glimmer of hope that this will encourage EDF Energy to continue to stay its hand. And if lower wholesale prices become a consistent trend then I would urge all suppliers to react quickly to alleviate the pressure on customers."
However, rather than relying on energy companies to lower prices, she said consumers should reduce their winter bills by moving to dual fuel, paying by direct debit and signing up to a competitive online plan. Cutting the amount of energy used by becoming more energy efficient and switching to fixed-rate tariffs could also reduce bills in the future.
In contrast one of the smallest energy providers, Ovo, announced a cut in its standard gas tariff in August. While its electricity price increased by 5%, its gas charge fell by 3%, with no change to dual fuel prices.
Joe Malinowski of energy price comparison website TheEnergyShop.com says: "The implication is that Ovo Energy will stay towards the top of the best buy tables and will keep the pressure on the big six. That has to be good news for consumers."
He says that although Ovo Energy does not offer a standalone gas tariff, the gas component on its dual fuel tariff is around £96 (15%) cheaper than the standalone gas tariffs of the big six providers.
However, for customers preferring to fix the price they pay, he recommends two tariffs from EDF Energy: Fixed S@ver Version 2, a one-year fixed deal, and Fixed Price 2014, which fixes for three years. This comes at an 8% premium to current standard prices, he says, but gives consumers the security of knowing their bill will not rise.
More than one million consumers who use heating oil for their homes faced rocketing prices last winter, but should at least now be able to see whether they are getting the best deal following action by the Office of Fair Trading.
Three websites offering to find consumers the best price for heating oil – boilerjuice, fuelfighter and cheapheatingoil – have agreed to make changes after the OFT found they were not clear about whether they were acting as price comparison sites or simply ordering heating oil from a single supplier – and in some cases that they were conducting mis-leading business practices.
Jill Insley
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