Monday, October 25

Energy suppliers hike fixed rate deals: Is Brexit already pushing up our bills


 

 

Fixed energy deals have increased by up to £105 in the last month, according to research by uSwitch.com.

Fifteen suppliers have replaced their cheapest fixed tariffs with more expensive plans in the past month, putting up bills by an average of £38 a year.

The biggest hike has come from small energy supplier Extra Energy, which has put up the cost of it’s ‘fresh fixed price tariff’ by £105.

Sainsbury’s Energy – which is supplied by British Gas – has increased its fixed tariff by £94. While OVO Energy and First Utility have pushed up costs by £63 an £48, respectively.

Twelve of the firms have increased prices since the EU referendum result was announced on June 23.

Why prices are rising

“Concerns regarding future UK energy supplies, along with market uncertainty following the EU referendum result, have helped increase wholesale prices in the last three months,” explained Tom Lyon, energy expert at uSwitch.com

“The UK is a net importer of energy, and the falling pound is putting upward pressure on the cost of energy and future prices. It remains to see whether this is just a blip, however wholesale prices still remain well below their levels in 2013.

“And, in terms of energy deals, fixed term tariffs are still available which are over 10% cheaper than expensive big six standard variable plans.”

Should you fix?

Fixing means that you will pay the same for your energy usage over an agreed amount of time.

It can be a good way to protect yourself against further hikes but if prices fall you may lose out.

Providers will usually charge a fine if you want to leave early. This means that by signing up to a fixed rate tariff you’re taking a gamble on what will happen to energy prices.

To find the best deal for you, head to a comparison website and compare tariffs.

Will prices rise?

It’s impossible to predict the future, but we thought we’d ask a couple of experts what they thought anyway.