Wholesale prices are also affecting some of the cheapest energy deals on the energy market
Back in September, Co-operative Energy became the first energy supplier in two years to announce a price rise of 3% to its standard variable tariff — this is the type of tariff that customers are on when they roll off of a fixed deal at the end of their fixed period, or when they’ve never switched their home’s energy supplier(s).
Additionally Co-operative Energy upped the price of its average prepayment bill by 6%, hitting those who are often most vulnerable.
GB Energy Supply’s price rise
This month, GB Energy Supply have confirmed that their standard prices will increase by a shocking 30% from £820 to £1,060 a year for the average dual fuel variable tariff bill. This puts their standard prices in line with those of the “Big Six” energy suppliers.
Claire Osborne, energy expert at uSwitch, says: “This is an eye-wateringly large price hike for GB Energy’s standard variable rate customers.
The supplier has raised the price of this deal twice since July, meaning some customers will now be paying almost £300 a year more than they were just three months ago.”
Market losing cheapest fixed deals
With GB Energy’s large price hike, it could be that more providers will follow suit due to the pressure of rising wholesale prices appearing to impact suppliers.
Over the Summer, the prices of fixed term deals were also seen to increase, as the price of the most competitive deals offered by the largest energy suppliers fell by 10% (or £107) in the three months to September compared to the same period in 2015: the “Big Six” suppliers reduced the cost of their lowest priced tariffs by an average of £121 to £829, closing the price gap between their smaller rivals.
The four most popular smaller providers also reduced their cheapest tariff by an average of £85 to £779.
Worried about price rises?
If you’re sat on a standard variable tariff, or are not sure you fixed term deal is the best for your home, then shopping around for a competitive fixed deal now could protect against any potential price rises.
Although fixed term deals have been increasing in price as the cheapest are removed from the market, there are still many enticing energy deals available to choose from – for now at least – although they may not be around for long if wholesale prices continue rising.