Further prices increases…

As you might imagine I like to ensure I pay as little for my own Electricity (I don’t have a Gas supply) as I can. I like to keep a close eye on available tariffs for advising others and as I would advise everyone to switch suppliers every 12 months to the cheapest fixed price deal available. Well, that was until December last year. In December 2016 there were no obviously ‘cheapest’ fixed price deal to entice me and therefore I decided, rather than get tied into something more expensive than my previous (Extra Energy) tariff, I would chose a similarly competitive standard variable tariff (SVT) and wait and see what happened…

As predicted prices began to rise, however I was content in the fact that my new supplier, Robin Hood Energy, a not for profit energy supplier, would keep its prices competitively low, after all, it didn’t need to make huge profits and stated “Launched by Nottingham City Council, our mission is to provide low cost energy to all households. No private shareholders. No director bonuses. Just low and competitive energy tariffs” RHE would describe itself as “the UK’s first local authority owned energy supply company, we set ourselves apart from the ‘Big Six’ and many other private sector energy companies”

 

This week I received an email from RHE notifying me of a pending price increase:

 

 

I am not so naïve to expect that RHE’s prices would not increase, however I am surprised to see that their price increases are significantly higher than those already announced by the ‘big six’. I used 6457kwh of electricity last year. This is what my energy costs look like before and after the price increase;

 

 

So, the unit rate for electricity has gone up nearly 4p per kilowatt hour, equivalent to a 32% price rise, overall my annual bill will increase by over £250, that’s a 29% increase, that’s almost double the rate of some of the ‘big six’ suppliers. Overall RHE say there ‘average’ dual fuel customer will see a 17% increase in prices, more than all of the ‘big six’. They are not alone, speaking with a tenant at an event yesterday I was advised OVO energy had moved in the same direction this week also increasing there SVT prices by 17%.

 

As you can imagine, I immediately did a free price comparison and switched away to the cheapest fixed price deal on offer. I wonder though how many of RHE’s customers might not see their email, how many won’t be aware as there has been no press coverage and therefore how many customers who though they were on a competitive deal will suddenly find their energy costs increasing by approximately £20 a month?

 

The moral of the story as ever is, keep an eye on your energy costs, do price comparisons and switch suppliers and if you’re not sure how, why not ask us and we can help 01902585500.

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Leigh Fairbrother

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