Why Your Energy Bills Are About To Drastically Rise

Why Your Energy Bills Are About To Drastically Rise

Doom and gloom I’m afraid, your energy bills are about to rise by anything up to 34%!

After a brief spell of falling prices we’re all in for a shock this winter as energy bills rise beyond belief.

All but one of the Big Six energy providers have bumped up their cheapest tariff costs since September with only British Gas abstaining so far.

If you’re an E.ON customer you could see your bills rise as much as 34%, that’s a rise of £255 on average on your annual energy bills – an awful lot of extra money to find for those struggling the most, just as we are about to crank up the heating!

energy bills

Why the sudden price hike?

Wholesale prices rose significantly last month for gas and electric by 15% and 20% respectively.

According to uSwitch the price of wholesale gas and electricity has been rising at its fastest rate for several years.

Although, one would have to question why E.ON felt it necessary to increase their prices by 34% if the cost to them has been 20%!

The falling value of the pound after Brexit hasn’t helped either.

GB Energy have already thrown in the towel and announced it would cease trading over the weekend, citing rising costs as the main factor.

What can I do?

If you’re on a standard plan (no fixed agreement) NOW is the time to act!

Shop around using a comparison site such as uSwitch, find the cheapest deal in your area and switch suppliers.

There isn’t an energy company in the land with any loyalty to you, so do what is best for your pocket.

Ignore the common misconceptions of switching energy supplier!

I will lose supply during a switch

You will not lose your supply whilst your switch is being processed, your gas and electric all comes from the same place, The National Grid.

Energy suppliers purchase energy from the National Grid and sell it on to us at a profit.

Your current supplier’s energy is no different to the next company, the only difference to you or me is the logo at the top of our bill and the rate we are charged.

Ask yourself this question, would you buy a bottle of milk from a shop selling it for £30 or would you go to another shop selling the exact same thing to get it for £1?

I’ll be better looked after by remaining loyal to one company

If this were true nobody in the country would be on a standard rate of energy would they?

If your supplier really wanted to reward you for your loyalty they would call you and transfer you to their cheapest available tariff every time one became available.

They are happy to leave you paying the standard tariff paying way more than you need to, until you decide otherwise.

The rule of thumb is loyalty doesn’t pay where energy is concerned.

It is always better to be with one supplier for both gas and electric

In most cases, but not all.

Sometimes when you have prepayment meters it can be cheaper by splitting the energy supply between two suppliers, which is why you should always do a comparison to be 100% sure you’re are getting the cheapest possible deal.

I cannot switch if I have arrears on my prepayment meters

You can take a maximum of £500 worth of arrears for each fuel to another supplier if you pay by prepayment meter.

Ultimately it will be down to the discretion of the supplier, but in most circumstances as long as you meet the criteria above, you can switch to a cheaper supplier.

Final word

These are some of the biggest price hikes we’ve ever seen on our energy bills and now really is the time to find yourself the cheapest deal and fix down your prices.

If we could all find a cheaper deal on our water and council tax etc. and fix down the price we’d all jump at the chance to do it.

So tell me,  what’s the difference when it comes to your energy bills?

Thinking Thrifty

Thinking Thrifty

David Jack Taylor is the founder and editor of the Thinking Thrifty blog. After a striking realisation about the direction his life was heading he set himself a 15 year plan to achieve total financial freedom. Join the journey!
Thinking Thrifty

Latest posts by Thinking Thrifty (see all)

Please follow and like us:

4 thoughts on “Why Your Energy Bills Are About To Drastically Rise

    1. Yeah so many people had bad experiences through dodgy salespeople when it first deregulated that they’re scared to switch again. The process is so much better these days, usually all done in 30 days. It’s the easiest way to save a few hundred quid a year!

Leave a Reply

Your email address will not be published. Required fields are marked *

CommentLuv badge

Finance Blogs   Displaying Top 100 Frugal Badge.png  
Don't miss out on new posts!
Subscribe

Enjoy this blog? Please spread the word :)