Covid-19 and Energy Price drop

These are really scary times.  We hope you and your loved ones stay fit and healthy.  We know many people (us included) have had a series of severe financial shocks that are really worrying.  It doesn’t help that supermarket shelves seem to be empty with loads of panic buying despite government assurances that there is no shortage of food.

Below are some small pieces of news that will be helpful for some of you.

  1. Yesterday, March 19th, the Government agreed measures with the energy industry to support vulnerable people through COVID-19
  2. Energy prices have dropped significantly – so now is a great time to switch

Switch and Save Now

Energy industry to support vulnerable people through COVID-19

  • Measures include ensuring prepayment and pay-as-you go customers remain supplied with energy through challenging times and supporting all customers in financial distress
  • industry agreement signed by all UK domestic suppliers and will come into force immediately

Secretary of State for Business and Energy, Alok Sharma, said:

While friends and family will play a role in helping people impacted by the Coronavirus, we recognise there will be many customers who will need additional support and reassurance, particularly those who are financially impacted or in vulnerable circumstances.

The government has committed to do whatever it takes to get our nation through the impacts of this coronavirus pandemic. Today those most in need can rest assured that a secure supply of energy will continue to flow into their homes during this difficult time.

The government and energy industry have agreed to prioritise those existing customers most in need, while identifying customers whose circumstances may have changed as a direct or indirect result of COVID-19.

What new Covid-19 regulations mean

  • If you have a prepayment meter and you have trouble keeping it topped up either due to financial distress or self isolation, then your energy supplier must help keep your supply running
  • More generally, if you have a debt with your supplier, you have lost all or a significant part of your income, you will NOT have your supply cut off.

For those people on prepayment meters, this could include nominating a third party for credit top ups, having a discretionary fund added to their credit, or being sent a pre-loaded top up card so that their supply is not interrupted.

Exactly how this will be work for people whose jobs or income has suddenly disappeared is not yet clear, but all energy suppliers have signed up to this.

You can read more about this Covid-19 emergency measure on the Ofgem website

Energy Price Drop

If you are not already on a good home energy tariff, now is a great time to switch with savings of over £300 per year for an average family if they switch from a standard tariff.

The cause is that there is a global glut of energy as the world slows down energy usage due to Coronavirus.  Also Saudi Arabia and Russia have had a row and are refusing to cut down their energy production.  This has forced prices down significantly.

There are very good tariffs from:
Edf Energy – Simply Online 1 Year Fix Apr 21 (Low carbon electricity)
Tonik – Green Power (1 Year) v3 (100% renewable electricity)
Scottish Power – Super Saver April 2021 B5 (100% renewable electricity)
Eon – Fix 1 Year Exclusive March 2020 (100% renewable electricity)

British Gas is also very cheap, but they sign you up to a free 12 month boiler service contract that you will have to remember switch away from.  For that reason we do not recommend it – as if you forget it will work out very expensive (after the first year it will cost £144 per year)

Switch and Save Now

As always we share our commission with you – this means that after about 90 days you get £10 cashback per fuel switched

We hope you can get through this crisis.  Please stay safe.

 

 

 

Categories: Lower energy bills and News.