Bulb to hike energy prices for the second time this year
As a result, about 1.7 million Bulb customers will see their gas and electricity bills rise for a second time this year. Bulb also hiked its prices last month by an average of £91 a year.
The last price hike saw both customers paying by direct debit and those on prepayment meters paying higher prices. But this time Bulb is only upping prices for households paying by direct debit. These customers, on its ‘Vari-Fair’ variable tariff, will pay an average of £69 more a year.
Exactly how much more you will pay depends on where you live and how much energy you use. Bulb’s Vari-Fair tariff is currently £1,057 a year on typical use, but it will be £1,126 a year from 21 June. This is just £12 below Ofgem’s energy price cap of £1,138. Before the April price hike, the Vari-Fair typically cost £966 a year.
Bulb is blaming the price hike on increases to wholesale energy costs, which it says are up 29% since March. It says it passes on cost savings when the cost of supplying energy falls, so when it drops by more than £20 per year, its prices will fall too.
Bulb is contacting affected customers to let them know about the changes. Those who don’t want to pay the new inflated prices can switch to another supplier penalty-free. Anyone who signs up to Bulb from 31 May will automatically be charged the new rates.