A lot of things have happened this year. That includes extreme price changes from the biggest energy suppliers in the UK.
Since April 2020, energy market prices in the UK have dropped to a new all-time low due to lockdown and a big plunge in demand. However, now that restrictions have toned down in most regions and energy demand has already skyrocketed significantly, wholesale energy prices have started to rise once again.
But surprisingly enough, most UK-based energy companies have announced price drops last August.
These price reductions are mainly due to the decrease in the price cap from October 2020. It is worth noting that consumers who are on a standard variable rate tariff are the only ones set with an energy price cap.
Below we have written in detail the changes that 7 energy suppliers have implemented to match Ofgem’s energy price cap; including their past announcements and price updates:
1. British Gas – 7% reduction on the average rate
Following their announcement in August 2020, British Gas’s price cut on their standard rates took effect in October 2020, where they deducted at least 7% from the average rate.
This is an average cut of £84 for British Gas consumers, leading to an average bill of at least £1,041 per year.
To match the falling price cap, the well-known energy company previously announced a 2% price cut for its clients, which lowered the average bill for these customers by £19 per year.
Their prices have lowered to an average of £1,158, which is £3 below the maximum allowed price for the latest price cap level.
In August 2019, the energy company cut the cost of its standard tariff by 6%, resulting in an average bill of £ 1,177 from October 1, 2019, in line with the price cap.
As soon as the calendars hit April 1, 2019, a 10% price increase for standard variable tariffs came into effect following the supplier’s announcement in February 2019. Dual fuel customers that were on standard variable rate tariffs were affected greatly by the increase, as British Gas default tariffs became roughly £324 more expensive than the other providers in the market.
British Gas consumers were faced with a hike of a whopping £119 when these prices were changed to match the cap rate of £1,254 back in February 2019.
Going back further into time…
The dominant company also announced a price hike of 3.8% in August 2018, which was their second price increase at the time (for standard variable tariffs). Customers that were on the specific tariff faced an increase of £44 per year on their utility bills.
In April 2018, British Gas was certainly one of the first suppliers to announce yet another price increase caused by rising wholesale costs.
All in all, these price hikes added over £104 to British Gas customers’ bills.
About British Gas:
British Gas, a Centrica-owned company, is one of the biggest energy providers in the UK. They supply energy for over 5 million consumers UK-wide. You can find customer reviews here.
2. E.ON – 7% reduction on the average rate
To align its tariffs with Ofgem’s energy price cap, E.ON has reduced its prices TWICE this year, particularly in February and August.
Last August, the Germany-based supplier announced a 7% price reduction on the average cost of its standard variable tariffs in line with the latest energy price cap, which came into effect in October 2020. This led to prices dropping by an average of £84, bringing the average customer’s bill to £1,042.
Again, standard variable rate tariffs were again reduced by £16 in February 2020 in reaction to the price cap level.
In October 2019, around 1.8 million dual fuel customers that were on a standard variable rate tariff under E.ON experienced a price drop of £77.
Prior to all these price plunges…
A £55 increase for dual fuel customers took place in August 2018. Which was a price raise by an average of 4.8%.
On top of that, all discounts that were previously offered by the big six company were removed, and cheque and cash quarterly payers were faced with increased standing charges in April 2018.
E.ON was previously known as Powergen. They are an energy company based in Germany with at least 3.8 million users. You can find customer reviews here.
3. nPower – 7% reduction in the average rate
Npower recently announced a price drop on standard variable tariffs, bringing rates down to £1,042 to match Ofgem’s price cap. This equates to a 7% reduction in its average rate for over 1 million clients. The price drop came into effect in October 2020.
Like we said earlier (and just like all the previous price drops mentioned), all these changes only apply to customers that are on a standard variable rate energy tariff, that includes customers who have let their fixed energy plans lapse.
Before the energy company’s last price change, they also reduced their standard variable tariff cost by 6% in October 2019, in reaction to the price cap rate drop.
Prior to all these plummeting prices, however, npower raised their prices in February 2019 to the price cap level of £1,137. And, in June 2018, they have also raised their rates by 5.3% which have amounted to a £64 rise for dual fuel customers.
Npower was previously known as Innogy plc. They supply gas and electricity for over 3.6 million customers in the UK–both residential and business. You can find customer reviews here.
4. EDF – 7% reduction in the average rate
In their August 2020 announcement, EDF’s price drop of about 7% for standard variable tariff customers in response to the energy price cap came into effect on October 1.
A 1% price drop was seen by the company’s standard variable tariff customers in April 2020, as a result of the plummeting price cap. On top of that, the bills of prepayment customers fell into an average of £1,199.
Before these deductions were made…
A raised price of 6% took place in August 2018. Customers that were on standard variable tariffs faced a £70 increase. Additionally, EDF also raised rates by 1.4%, leading to a £16 rise for dual fuel customers.
The French-owned company supplies energy (that mostly originates from nuclear power) to over 3 million customers in the UK. You can find customer reviews here.
5. SSE – 7% reduction in the average rate
SSE announced a price reduction a little later than all the previous energy companies mentioned in this article. In line with the revised energy price cap, costs for standard variable tariffs were reduced by 7%, which was announced by the supplier in September 2020.
Customers on standard tariffs witnessed their average bill drop by at least £83 to the maximum allowed cost of £1,042 per year. The updated price came into effect in October 2020.
The company announced a 1% reduction for standard variable tariffs earlier this year as a result of the revised price cap level.
Last year, particularly in August, the company announced a price update that conducted a 6% plummet for over 2 million customers that were on a standard variable tariff.
Price rises that took place in 2019…
In February 2019, prices skyrocketed to 10%. This came into effect in April 2019.
SSE devotes their service to micro-businesses, small businesses, medium businesses, and large businesses. They also generate renewable energy and offer great tips on energy efficiency. You can find customer reviews here.
Customers that are on ScottishPower’s standard variable tariffs experienced a price reduction with an average £84 decrease that took effect in October 2020. The announcement was made in August 2020. This price update is in line with Ofgem’s revised energy price cap rate. The cost of its standard variable tariffs were reduced to £1,042
The energy firm was the fifth among six of the biggest energy suppliers in the UK to adjust their prices in accordance with Ofgem’s adjusted price cap in August.
Prior to this price drop…
In April 2019, ScottishPowder increased the price for its standard variable tariffs by £117 in line with the risen price cap.
Prior to that, the company immediately announced a price rise as soon as Ofgem revealed the increased price cap rate, which was at a level of £1,254.
In August 2018, the renowned supplier also announced a 3.7% price rise that affected over 900,000 dual fuel standard rate customers. The hike took effect in October 2018, which was later recognized as the second price rise from the company itself. In April of the same year, the company hiked up its price by 5.5%, which took effect in June 2018.
ScottishPower is a Spanish owned energy company that uses wind energy for the benefit of the environment. They are one of the biggest green energy companies in the UK.You can find customer reviews here.
7. Bulb Energy
In September 2020, one of Britain’s thriving suppliers have announced their upcoming price rise due to growing wholesale energy costs. According to the energy firm, the network costs have gone up; this is what they pay on the regular to keep energy moving. Electricity only, dual fuel, and pre-payment consumers will witness their bill increase by £51 per year. However, Bulb will still be £76 below the revised price cap.
Bulb had also increased their power prices by £22 a year last March.
However, the company lowered their prices for dual fuel customers by £56 a year in April.
“But, in recent months (and as we said in July) we’ve been seeing significant increases in what it costs to supply energy,” the company then stated in their official website.
They provided their customers with an in-depth explanation as to what they should be expecting with the upcoming changes, how it’s going to affect their bills, and the reason behind these changes.
In April we were able to lower our prices for a typical dual fuel home by £56 a year. But, in recent months (and as we said in July) we’ve been seeing significant increases in what it costs to supply energy. We now need to pass some of these changes on to our members. In this post, we explain what’s changing, what that means for energy bills and what’s behind the changes.
They have provided their clients with an in-depth explanation as to what they should expect from the upcoming changes, how it will affect their bills, and the reason for these changes.
Bulb will be increasing their electricity rates, but gas rates will be lowered. Home users will be able to save £2 on gas and an increase of £53 on electricity. Which, in total, is £51 a year.
Bulb has been active since 2013. The energy firm sources the energy they provide to 1.5 million customers from wind, solar, and hydro power. They offer household and business tariffs. On top of that, they don’t charge their customers an exit fee, should they wish to make the switch.You can find customer reviews here.
Did your current energy supplier raise prices? Here’s what you can do about it:
An efficient and smart way to get out of this predicament is to switch to a new supplier. Besides, you shouldn’t even settle for a standard variable tariff, since it’s one of the most expensive plans providers have to offer.
Alternatively, running an energy price comparison is the best, cheapest, and fastest way to finding the best deals in your area!
Whether or not you’re happy with your current provider, comparing quotes regularly will still show you how much money you can potentially save should you switch to a different one. Besides, there are several awesome deals out there that you may not know of.
That being said, we provide our clients with comparison rates that are up to date and in par with their requirements! Answer our form above and let’s get comparing! It will take less than a minute.