The big 6 energy companies are expected to rise their energy bills, after Ofgem raised its price cap last week.
Ofgem announced that it would be raising the cap to a maximum of £1,254 per year, as of April 1st. This is in comparison to the current price of £1,137 paid by people on a standard or default tariff.
E.on became the first major supplier to hike their rates affecting 1.8 million households. EDF soon followed affecting a further 1.3 million households, in response to the cap.
EDF and E.On are the first two suppliers to increase their energy prices to the maximum allowed under the cap, with others expected to follow.
Why are prices rising?
Ofgem have raised their price cap due to energy suppliers being faced with higher costs of wholesale gas and electricity. The wholesale costs are being owed to the high global price of oil.
From April 1st, suppliers can charge more to those on default tariffs and have not switched supplier.
How does the price cap work?
The price cap was introduced by the government to protect those who have stayed loyal to their energy supplier.
Reviewed every April and October, energy price caps ensure customers pay a fairer price for their gas and electricity. However, if you use more energy, your maximum cost is higher, and if you use less, it’s lower.
The big 6 energy companies are expected to follow suit in raising their prices close to the price cap for a standard variable tariff, to households in England, Wales and Scotland.
What can I do?
If you’re a business expecting to be affected by the increase in gas and electricity prices, slash your bills by comparing energy companies with The Energy Desk.
The energy market is competitive, and with pricing changing frequently, the best way to save is to find the latest deals across all energy suppliers.
TED can ensure your business gets the best deal on your energy, including business solutions, renewable resources and technology, so you don’t get stuck with rising costs.
Compare the cost of energy bills with TED’s price comparison generator.
Contact TED today
TED can fund a range of renewable energy projects for businesses within the public and private sectors to help reduce energy costs.
If you have any questions regarding energy costs, then contact one of our dedicated team today.