All the big energy providers are all raising prices for customers on out-of-contract gas and electricity deals, but what can you do?
The price cap, which limits the amount firms can charge for standard tariffs, is increasing. And although wholesale prices are rising by 33% this means energy firms can only up their rates by as much as 9.2%.
British Gas, EDF Energy, Eon, Npower, Scottish Power, SSE and Utilita are all set to increase the prices of their standard tariffs to the maximum allowed on 1 April 2021. Smaller suppliers Igloo and So Energy are also raising the prices of their standard tariffs, although they’ll still cost less than the price cap. British Gas Evolve is raising its prices in line with British Gas. Standard tariffs are also known as default tariffs or out-of-contract tariffs. You’re likely to be on one if you haven’t switched energy supplier or tariff in a while, or didn’t choose a new deal when your last fixed-term deal ended.
If you have a prepayment meter, the same companies are increasing their prices. But the savings you’ll miss out on by staying on an out-of-contract tariff are different. This is because the price cap and cheapest tariffs for prepayment meter customers are different.
What does this mean for you, and what can you do?
If you’re not on a fixed tariff we calculate your annual bill will increase by around £100 per year, and those on a standard tariff might pay as much as £200 extra. You can look at swapping providers but all of them will be increasing their prices, and those will only increase from here so the only way to reduce them significantly is to look at generating your own energy and cutting out the middle man as much as possible. By installing solar panels and a battery you can reduce your annual electricity bill by as much as 80%, and with the use of an immersion heater and electric hob you can cut your gas bill down too. If you own an EV you can potentially save hundreds of pounds per year on fuel by charging from solar, and as electricity prices continue to creep up you will save more and more as time goes on.