I must admit I have been a little worried about our latest collective switch. In February 2016 we got the cheapest gas and electricity tariffs we could fine anywhere (including other collective switches, other comparison sites).
iSupply have removed their market beating prepayment tariff from our offers due to devaluation in the pound post Brexit vote. We hope that our other offers will remain till the collective finishes on 18th July.
Are domestic energy prices about to go up?
In the last few weeks there have been a number of warnings that energy prices are about to rise – some suppliers have pulled their cheapest tariffs and the price suppliers pay for gas in particular is about 10% higher than its been for most of the year.
Cornwall energy – an energy market intelligence outfit, recently blogged about energy prices starting to rise along with their suspicion that the long awaited Competition and Markets Authority Report on our dysfunctional energy market, is about to be released. They think it maybe released on Friday – the day after the European referendum. If it is released then, you can be sure that energy consumers will be getting a poor deal.
Read more about what industry insiders think will happen to energy prices (opens in a new window)
We think they are right … energy prices will start rising soon.
Impact of Brexit
In the run up to Brexit there were claims that leaving the EU would result in the scrapping of VAT on domestic energy bills, saving us all 5%.
This may or may not happen, depending on the government – but will only happen after we leave the EU – at least 2 years away.
In the meantime the dramatic devaluation of the pound against the Euro and the Dollar mean that there is even more pressure on your energy prices going up. That’s because the energy we import (both gas and electricity) will be more expensive for our suppliers to buy as it is bought in Dollars or Euros. If the pound does not recover (or oil and gas prices fall) response suppliers are likely to increase their prices to us.
Of course the financial turmoil might mean that oil prices fall by more than the devaluation in the pound … so this is just speculation.
When the offers were launched there was also a market beating offer for prepayment customers from iSupply (£1018 for a fixed one year deal✝)- which was the cheapest on the market. After the Brexit vote this offer was removed by iSupply – presumably because of the devaluation in the pound and the consequent increase in fuel costs.
- The 2 year fixed deal from eon is the best on the market for a long(ish) fix. This is great if energy prices start to rise
- iSupply are offering the cheapest 1 year fixed prepayment tariff (unfortunately, this was pulled after the Brexit Vote)
- SSE are offering a good tariff that is close to the cheapest on the market. SSE’s deal is a massive £187 less than their current offering on the open market. SSE do offer one of the best customer service options. SSE recently topped the recent Citizen’s Advice Service ratings survey and is rated by our switching partner as a 5 star service supplier.
The bad bits
- Our collective offers aren’t the cheapest for all categories
All our collective offers can be compared against a full market comparison and you can choose any offer you like.
Any offer you switch to with a “I WANT THIS TARIFF” link gets an ADDITIONAL £10 cash back per fuel switched as we share our commission with you. Find out more about how our cash back works
or see if you can save
SSE recently topped the Citizen’s Advice Service ratings survey- more information can be seen on the CAB website:https://www.citizensadvice.
† Saving is for an average usage home, taking gas and electricity, and paying by monthly direct debit switching to the collective winning tariff from SSE. The savings calculation is done versus the standard tariff costs for a home that has never switched i.e. they take British Gas Standard for gas and the default electricity supplier’s standard tariff for electricity. Average annual energy usage is currently defined by OFGEM, the energy regulator, as 12,500 kWh of gas and 3,100 kWh of electricity per year. Calculations correct as of 20th June 2016. Source: energyhelpline
More information on possible energy price rises
On higher fuel bills and less renewables (all open in a new window)