UK Gas Prices and Electricity Prices Continue to Rise

UK gas prices and electricity prices are on the rise, with all of the ‘Big Six’ energy suppliers increasing their tariffs this year. In this article, we compare the energy price increases of the Big Six gas and electricity suppliers.

Who are the Big Six energy suppliers?

The Big Six is the collective name given to the six largest energy providers in the UK. These companies supply gas and electricity to millions of homes and business. Although there are over 50 smaller suppliers, the Big Six currently control around 80% of the UK energy market.

British Gas
EDF Energy
E.On
Npower
Scottish Power
SSE

All of the Big Six providers have increased their UK gas prices and electricity prices this year.

1. E.On

E.On is the latest of the Big Six energy suppliers to hike UK gas prices and electricity prices. This comes after E.On changed how it bills its customers in April, which saw a rise of £22 in the average standard variable rate.

When? June 2018
How much is the total energy price increase? 4.8%
How much will UK gas prices increase? An extra 3.3% (an extra £19 per year for the average UK household)
How much will UK electricity prices increase? 6.2% more (an extra £36 per year for the average UK household)
How many customers affected? 1.8 million
When will the energy price increase take effect? 16 August 2018

This means that bills for dual-fuel customers will jump to £55 a year for dual-fuel customers on E.On’s standard variable tariffs.

2. SSE

SSE’s recent price hike will mean an average £76 per year rise for customers.

When was the energy price hike announced? May 2018
How much is the total energy price increase? 6.7%
How much will UK gas prices increase? 5.7
How much will UK electricity prices increase? 7.7%
How many customers affected? 2.36 million
When will the energy price increase take effect? 11 July 2018

3. British Gas

The British gas energy price increases follow a 12.5% increase in electricity tariffs in September 2017.

When was the energy price hike announced? April 2018
How much is the total energy price increase? 5.5%, adding an average of £60 to bills.
How much will UK gas prices increase? 5.5%
How much will UK energy prices increase? 5.5%
How many customers affected? 4.1 million
When did the energy price increase take effect? 29 May 2018

4. Scottish Power

When was the price hike announced? April 2018
How much is the total energy price increase? 5.5%, or £63 a year on average
How much will UK gas prices increase? 5.5%
How much will UK electricity prices increase? 5.5%
How many customers affected? 1 million – the lowest proportion of all the Big Six of customers on poor value, standard tariffs.
When did the energy price increase take effect? 1 June 2018

5. EDF

When was the price hike announced? April 2018
How much is the total energy price increase? 2.7%, or £16
How much will UK gas prices increase? 0%
How much will UK electricity prices increase? 2.7%
How many customers affected? 1.2 million – nearly 40% of EDF’s total customer base
When did the energy price increase take effect? 7 June 2018

6. Npower

When was the price hike announced? May 2018
How much is the total energy price increase? 5.3% increase, an average of £64 per year
How much will UK gas prices increase? 4.4%
How much will UK electricity prices increase? 6.2%
How many customers affected? 1 million
When will the energy price increase take effect? 17 June 2018

Why the increase in energy costs?

Suppliers are blaming their energy prices rises on:

increasing wholesale energy costs (see below for details)
the increasing cost of supplying energy is increasing
partly due to extreme weather conditions, such as the ‘Beast from the East’ earlier this year
compulsory non-energy costs, such as upgrading meters

Wholesale costs rise a further 2% in March 2018

Consumers have been cautioned to expect mounting energy prices, as suppliers face increasing pressure to pass on increases in wholesale costs. Prices are expected to rise roughly 5% to 6.5%, which will result in a change in tariff.

Changes to be aware of:

The cost of oil is currently at a 3 year high;
Non-commodity costs (this includes energy transportation and distribution costs as well as government taxes and levies) comprise 55% of one’s energy bill. This number has increased in excess of 40% since 2016 and is expected to hit a staggering 60% by 2020.

Government’s reaction to these energy price hikes

Ofgem recently raised a price cap on 5 million vulnerable households. This comes before the government’s wider price cap for 11 million households on standard variable tariffs that is due to take effect before the end of this year.

Government is calling the Big Six’s energy price hikes “unjustified”. Energy and Clean Growth Minister Claire Perry said: “Big Six energy customers are already overpaying £1.4 billion a year. This is precisely why we’re introducing new laws for a price cap which will protect 11 million households on poor value deals by the end of the year. In the meantime, I’d urge consumers to vote with their feet and switch to a cheaper deal.”

How to mitigate the effect of increasing UK gas prices and electricity prices

Install of a smart meter for better energy monitoring and to identify potential efficiencies.
Implement energy-saving measures such as a more efficient boiler, LED lighting or better insulation.
Shop around, switch energy suppliers and save.

Let Smarter Business do the hard work and compare energy prices on your behalf. Our expert energy consultant will take care of the entries quoting and switching process, helping you save money by securing cheaper energy rates.