New MoneySuperMarket analysis reveals the recent price hikes from five of the Big Six energy companies could cost British bill payers £1bn collectively, with households on standard variable tariffs in the East of England worst hit by rising bills of an average of £88 each – more than any other area in the UK.
Bill payers on standard variable tariffs with five of the Big Six suppliers have been informed of price hikes ranging from one to ten per cent. According to the research affected households will be paying £80 more a year for exactly the same amount of energy.
Those in the East of England will be worst hit, with bills for those customers on standard variable tariffs typically totalling £1,2543. Almost a quarter (23 per cent) of households on Big Six tariffs in this area are with npower, which announced the highest price rise at 10 per cent, while a third (33 per cent) are with Scottish Power, which increased prices by eight per cent. These households could save £388 by switching to a fixed rate tariff.
Households in North Wales, Merseyside and Cheshire, where the majority of households on Big Six tariffs are with EDF (one per cent rise), will see the smallest price hikes, at an average of £58. Switching to a competitive fixed rate tariff could also see these customers save a significant amount (£380).
On average, households affected by the price rises could save almost £400 by shopping around and switching providers, totalling £7.4 billion collectively. While British Gas customers might feel lucky to escape a rise, with a freeze on standard variable tariffs applying until August 2017, those customers are still typically paying £1,174 annually – 34 per cent more than those on one of the cheapest fixed deals on the market4.
Stephen Murray, energy expert at MoneySuperMarket, said: “The message is loud and clear for the millions of people hit by Big Six price rises: shop around if you’re on a standard variable tariff, or if you’re on a fixed deal that’s coming to an end. Collectively, customers could save £7.4bn by standing up to price rises and shopping around – that’s well worth the seven minutes it takes to switch deals.”
|Provider||ABV before price rise||Price rise %||Average Rise||Average Bill Following Price Rise|
|Average Price Increase||Average Bill Value After Rise||Average Saving to be made by switching|
|Eastern England (Eastern Electricity)||£88.40||£1,253.69||£387.82|
|Merseyside, North Wales and Cheshire (Manweb)||£57.67||£1,205.42||£379.83|
|North East (Northern Electric)||£82.00||£1,238.60||£385.47|
|North West (Norweb)||£82.53||£1,236.96||£383.51|
|North of Scotland (Scottish Hydro Power)||£66.66||£1,218.52||£383.76|
|Central and Southern Scotland (Scottish Power)||£65.65||£1,215.87||£381.51|
|South East (Seeboard)||£86.29||£1,242.13||£384.50|
|South East (Swalec)||£64.50||£1,216.70||£382.62|
|South West (SWEB)||£83.99||£1,238.90||£384.45|
|Provider||ABV before price rise||Price Rise %||Expected ABV Following Price Rise|
|Full Big Six average / total:||£1,164||6.93%||£1,230.62|
Average cost of the top ten cheapest deals is £877 – as at 21st March 2017