EDF, E.on, Npower and Scottish Energy are elevating payments for tens of millions after the vitality value cap hike by practically £ 100 a yr
Beginning April 1, the Ofgem Energy Regulator’s price cap for standard variable tariff (SVTs) for credit meters based on typical dual fuel consumption will increase by £ 96 / year from £ 1,042 / year to £ 1,138 / year due to rising wholesale costs . In the meantime, the cap on prepayment tariffs will increase from £ 1,069 / year to £ 1,156 / year for a typical household by £ 87 per year.
It is up to the utility companies to raise prices to the new caps, but British Gas has already confirmed it will cut the bills for those on its SVT by almost £ 100 / year and now for EDF, E.on, Npower (owned by EDF) is raising by E.on but is still setting its own prices) and Scottish Power have acted similarly. We asked another big energy company, SSE, if they plan to raise prices to the new caps as well, and we’ll update this story as we know more.
To tackle the hikes, see if you can save with a full market comparison through our free Cheap Energy Club. E.on, Scottish Power, SSE and Npower have not yet officially released their new price rates below the revised cap. So right now, if you’re in their SVTs doing an Energy Club comparison, the savings shown are underestimated.
The prices are allowed to rise a maximum
Below we summarize who is affected by these price changes. But remember, the price cap size is NOT the maximum you can pay. The caps simply set a maximum fee for the prices you pay for gas and electricity – use more and you pay more, use less and your costs are lower.
Here’s how the bills for EDF, E.on, Npower, and Scottish Power change for typical dual-fuel users:
- When you have a credit meter and have a standard variable ratethe price will go up on April 1st. Average prices increase by £ 96 / year from £ 1,042 / year to £ 1,138 / year.
- If you are a prepaid customer and have a standard variable ratethe price will also rise on April 1st. Average bills increase by £ 87 / year from £ 1,069 / year to £ 1,156 / year.
- When you have a solid dealThe price won’t change until your fix is done. However, if your fix ends after April 1st and you don’t switch, you’ll be switched to a standard variable rate that has become even more expensive due to the price increases.
According to Scottish Power, 1.5 million customers will be affected by price increases for both credit meters and prepaid meters. E.on wouldn’t tell us how many households are affected, but According to Ofgem, it has 1.8 million customers with SVTs for credit meters. We’re still waiting for EDF and Npower to confirm the affected customer numbers, but According to Ofgem, EDF has 1.3 million SVT customers with credit counters while Npower has around 900,000.