You are here: Home - Uncategorized -

Shell Energy is the latest utility provider to increase prices

Written by: Christina Hoghton
A change to the Ofgem price cap means many energy providers are now hiking their rates, but you can shop around for a better deal

Shell Energy has joined other utility providers in increasing prices.

It has announced an average 12.23% increase to its price for gas and electricity across the UK, in line with the Ofgem price cap that was announced in August.

What is the price cap?

The Ofgem price cap has been in place since 2019 and was introduced to make sure that consumers pay a fair price for gas and electricity.

The cap limits the unit rate and standing charge that energy suppliers can charge for their standard tariffs.

It’s reviewed every six months and the latest increase to the cap will now come into effect on October 1st.

The increase takes the cap to £1,277 – a £139 increase on the previous cap announced in April 2021. In October 2020, the cap was set at £1,042, so it’s risen by £235 in just a year.

As a result of the higher cap, a raft of energy firms have announced hikes to their prices.

Gareth Kloet, of GoCompare Energy, said: “We have now seen most of the larger providers increase their tariffs to follow the Ofgem price cap, and while some of the smaller suppliers are yet to change their prices, we are now seeing some of the newer fixed rate deals being set above the price cap.

“For example, Shell Energy’s two-year fixed deal is now £1,352 which is £75 above the price cap, providing a strong indication of where the providers see the market moving in the next 12-24 months.

“This is a scary prospect for some bill payers who might already be on a tight budget – they are already facing an extra £235 on their bills in 2021, and 2022 doesn’t look much better if we are to go on these fixed rate deals that are being introduced.

“There are still a number of providers such as Utility Point and Pure Planet who have yet to increase their prices and some of the smaller suppliers are still cheaper than the Big Six, but the energy market is facing higher costs as a whole and it’s unlikely that we will see the tide turn in the near future.

“We would absolutely recommend checking your energy bills to make sure that you aren’t overpaying for your gas and electricity. It doesn’t take long to do and could prevent you from paying even more in 2022.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center