EDF, E.ON, Npower and Scottish Power hike energy bills
EDF, E.ON, Npower and Scottish Power are all raising prices by the maximum allowed under the new energy price cap announced earlier in February.
They follow hot on the heels of British Gas which announced price rises earlier this week.
Energy price cap
From 1 April, Ofgem’s energy price cap for standard variable tariffs, based on typical dual-fuel usage, will jump from £1,042 a year to £1,138 a year, due to rising wholesale costs.
The cap on prepayment tariffs will rise from £1,069 a year to £1,156 a year for a typical household.
The energy price cap is the maximum amount a customer with typical energy usage on a standard or default energy tariff can be charged each year. But the energy price cap doesn’t set a limit for your total bill – what is capped is how much can be charged for a unit (kWh) of energy.
It’s up to energy providers whether to increase prices to the new cap thresholds, but most of the big players are doing so.
Prices to rise by maximum allowed
EDF, E.on, Npower and Scottish Power are all upping the typical annual bill for the average user on a standard variable tariff to £1,138 a year.
If you’re a prepay customer, the typical bill will rise to £1,156 a year.
If you’re on a fixed rate tariff, the price won’t change until your fixed rate ends. However, if your fix ends after 1 April and you don’t switch, you’ll be moved onto a standard variable tariff, which will have become even more expensive as a result of the price rises.
Sarah Broomfield, energy expert at Uswitch.com, said: “British Gas was the first of the Big Six to react to Ofgem’s increase in the energy price cap, and now more suppliers have followed suit.
“Default tariff customers at EDF, E.ON, Scottish Power and Npower will see bills increase by an average of £96 from 1 April. Other energy companies are likely to announce similar price rises in the coming days and weeks, so now is a good time to act to keep your bills down.
“There are plenty of fixed deals available now that can protect you right now from market volatility. The best value fixed deal currently available on the market is £945 from Avro Energy, while the new price cap will sit at £1,138 for typical usage. This means that by switching, households could save themselves £193 across their annual energy bills.”