Plan on spending more on electric and heating bills this year. Most families may need to spend up to £200 more for their electric or gas bills. All of the Big Six suppliers have been increasing their rates this year. While we are only half-way through 2018, some of the suppliers have already increased their rates more than one time.
- EDF energy has just increased their Standard Variable Tarif by another 6%, which is their second increase this year. The new rates will go into effect at the end of August. The supplier has indicated that customers should plan on paying up to £70 more a year for their gas and electric bills.
- SSE increased their rates in May 2018 on their tariff plans, and they are telling customers who are affected to plan on spending up to £87 more on their energy bills this year.
British Gas increased their rates as well in early June 2018. They will be charging customers on the standard tariff plan up to 5.4 per cent more.
- E.on also increased the cost of their utility bills, but this supplier’s increase was not as high. Their customers will only be paying up to 2.7% more, but their increase went into effect in April 2018. We would not be surprised to see another increase from this supplier.
- Families in Scotland also need to save more money for their energy bills. As Scottish Power increased their tariffs by 5.6 per cent, which will lead to around a £65 per year increase in bills.
- Then of course there is British Gas. Customers need to plan up spending up to £65 more per year on their energy bills from a 5.4 per cent increase.
What is causing this? The Big Six are of course blaming the cost of oil and gas from their suppliers, also known as the wholesale rates. They state they are passing these costs on to their customers and the increases are out of their control. Some of the blame is going to OPEC or the shortage of oil in this world. Whatever the reason for the increases, they are bound to create hardships for struggling families who are already dealing with flat wages and increasing inflation.
Maybe the only bit of good news is that the increases will only impact customers on Standard Tariffs. While the percent and number of people impacted vary based on big six supplier, it ranges from 40 to 70 per cent of total customers from each company. So, the good news is not everyone will need to pay higher gas or electric rates, but the increases still impact more people than not. Even if your rates are not going up right now, it is wise to plan for future increases. As it may just be a matter of time before the cost of electric goes up for everyone in the UK.