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Brexit uncertainty spells end of cheap household energy tariffs

Joanna Faith
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Joanna Faith

The cost of household energy is on the rise again after a series of providers withdrew their best deals and introduced new, more expensive tariffs in response to increasing wholesale prices and Brexit uncertainty.

Wholesale energy prices have generally fallen in the last three years, leading to a price war in the domestic market, fuelled by dozens of new entrants keen to take on the so-called ‘big six’ providers – British Gas, EDF, E.ON, npower, Scottish Power and SSE.

According to GoCompare.com, best buy 12-month dual fuel fixed tariffs tumbled below £1,000 a year to below £740 in 2016.

However, the comparison site warned prices have started to rise, with the average top 10 best buy tariff now £26 a year higher than at the start of June.

Ben Wilson, energy spokesperson at Gocompare.com, said while the element of competition isn’t going to go away, more price rises are expected in the coming months.

“While the increase in tariffs is a marked turnaround from what we have seen in recent years, it is worth noting that the average top 10 tariff today is still £24 a year cheaper than at the start of the year. As a result, some households will undoubtedly see this as a good time to switch and fix their energy costs.”

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