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2018 worst year on record for energy price rises

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Written by: Danielle Levy
02/01/2019
The new energy price cap, which came into force on 1 January, appears to have sparked one of the worst years on record for price rises.

Research from auto-switching service Look After My Bills found that 57 price rises took place in 2018, which compares to 15 the previous year. Collectively, this equates to £840 million and means that an average of £74 was added to a household’s bill.

These price rises were introduced ahead of the price cap, which applies to default tariffs and aims to prevent energy providers from charging more than £1,137 for a typical duel fuel tariff. The cap will be in place until 2020.

Economy Energy introduced the biggest individual hike in September. It equated to 38% and added £311 to a customer’s bill. Meanwhile amongst the Big Six energy firms, Scottish Power introduced two price rises. This added £109 to a customer’s bill.

As we enter 2019, Look After My Bills pointed out that three more prices rises are on the cards in 2019 for Fischer Energy, Outfox the Market and Pure Planet.

Lily Green, head of research at Look After My Bills, commented:2018 has been a kick in the teeth for British households. It seems energy companies are spooked by the impending price cap and are setting prices high while they can.”

The table below outlines the top five price rises in 2018:

Energy supplier Tariff Previous Standard Variable Tariff (SVT) price New SVT price Difference Total Difference
Economy Energy* Switch Saver £811 £1,122 £311 38.30%
Solarplicity** Solarplicity’s Standard Variable £887 £1,141 £254 26.90%
Flow Energy** Flow Variable £1,027 £1,213 £185 17.65%
Green Star Energy** Rate Watch £1,038 £1,219 £181 16.70%
Igloo Energy*** Igloo Pioneer £845 £1,021 £176 18.70%

* Economy Energy raised prices once

** Solarpicity, Flow Energy and Green Star Energy raised prices twice

*** Igloo Energy raised prices three times

Source: Look After My Bills

 

Meanwhile, this is how the Big Six fared:

Supplier Previous SVT price New SVT price Total difference
British Gas* £1,101 £1,205 £104 9.30%
EDF Energy* £1,142 £1,228 £86 7.50%
E.ON* £1,123 £1,208 £85 7.50%
npower** £1,166 £1,230 £64 5.30%
Scottish Power* £1,147 £1,257 £109 9.40%
SSE** £1,109 £1,185 £76 6.70%

* Two price rises for British Gas, EDF Energy, EON and Scottish Power

** Npower and SSE had one price rise each

Source: Look After My Bills

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