SSE, E.ON and Scottish Power all hike standard energy prices
SSE is increasing the cost of its default tariff from £1,137 to £1,276 a year .The new price is just £1 below Ofgem’s energy price cap of £1,277 which will take effect from 1 October.
E.ON and Scottish Power are both increasing their standard variable tariffs to £1,277 a year, the maximum allowed.
The energy cap is the maximum price suppliers can charge customers on a standard or default tariff each year. Standard tariffs are variable, which means energy companies can increase (or decrease) the rate they charge at any time.
The energy price cap sets a limit for the amount a supplier can charge the average household with typical energy use. Households which use more energy than average may pay more than this.
The average customer on a standard variable tariff with SSE, Scottish Power or E.ON will pay £139 a year more for their energy when the price hikes take effect.
Ofgem said the increase in the price cap is driven by a rise of more than 50% in energy costs over the past six months with gas prices hitting a record high as the world emerges from lockdown.
Ovo Energy bought SSE last year, propelling it into the ‘big six’ energy suppliers along with British Gas, Npower, EDF Energy, Scottish Power and E.ON
Gareth Kloet, spokesperson for GoCompare Energy, said: “This isn’t welcome news for anyone but there are ways to avoid paying more than you have to. Switching energy provider can save you up to £270 on dual fuel bills and there are ways to make your energy usage more efficient.
“When you read about price increases, it can seem like there’s very little that can be done but it’s really worth taking some time to look at your energy bills and make sure you’re not overpaying on your current tariff.”
What are the cheapest energy deals on the market?
According to Energyhelpline.com, the cheapest fixed energy deals on the market are:
* Utility Point’s Just Join Up 21 18M Fixed Wk28 at a typical cost of £1,079 a year.
* Avro Energy’s Simple and Surge12M at a typical cost of £1,087 a year.
* Orbit Energy’s Blue Fix 12 – Apr21 at £1,122 a year