Energy customers in the East of England worst hit by big six price hikes
New MoneySuperMarket analysis reveals EDF’s price rise last week combined with the other recent hikes from five of the Big Six energy companies could cost British bill payers £1.2bn collectively. Households on standard variable tariffs in the East of England will be worst hit by rising bills, totalling £1,263 on average – higher 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 MoneySuperMarket, affected households will be paying £97 more a year for exactly the same amount of energy.
Before the price rises, bill-payers would have had an extra 600 kWh of energy for the same amount of money, which could power the following:
An LCD TV for two years
A microwave for six years
A vacuum cleaner for eight years
A low energy lightbulb for 30 years
Regional ‘winners’ and losers
Those in the East of England will be worst hit, with bills for those customers on standard variable tariffs typically totalling £1,263 – the highest in the country. 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. Five per cent are with EDF, which this week announced another round of price hikes. Households in the East of England could save £389 by switching to a fixed rate tariff.
Households in the North West will see the biggest direct rise following the price rises at £102 on average – but could save £386 by switching to a fixed deal.
What does this mean for bills?
On average, households affected by the price rises could save almost £400 by shopping around and switching providers, totalling £7.4 billion collectively. Those in the South of England could stand to save the most at £390. 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 market.
Stephen Murray, energy expert at MoneySuperMarket, said: “EDF Energy dealt bill-payers another staggering blow yesterday by raising prices once again. At the start of March it hiked electricity bills by 8.4% - and it has now announced a further 9% to electricity and 5.5% to gas, meaning customers will see dual fuel bills rise to £1,160. EDF customers aren’t alone though. 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.”