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Fixed-rate dual-fuel energy tariffs pulled since Brexit vote | Fixed-rate dual-fuel energy tariffs pulled since Brexit vote |
(about 1 month later) | |
Twelve energy providers have pulled fixed-rate tariffs and replaced them with more expensive deals since 23 June, in signs that the pound’s fall in the wake of the Brexit vote could push up household bills. | Twelve energy providers have pulled fixed-rate tariffs and replaced them with more expensive deals since 23 June, in signs that the pound’s fall in the wake of the Brexit vote could push up household bills. |
Comparison website uSwitch found a dozen dual-fuel deals had been replaced since the referendum, with new offers costing up to £105 a year more for the average customer. It said wholesale energy costs had been rising for the past three months, and that the UK’s position as a net importer of energy meant the falling pound was pushing up prices. | Comparison website uSwitch found a dozen dual-fuel deals had been replaced since the referendum, with new offers costing up to £105 a year more for the average customer. It said wholesale energy costs had been rising for the past three months, and that the UK’s position as a net importer of energy meant the falling pound was pushing up prices. |
British Gas, EDF and Scottish Power are among the firms to have repriced a fixed-rate gas and energy deal, although the biggest increase was by small provider Extra Energy, which replaced its Fresh Fixed Price October 2017 deal, typically costing £770 a year, with one fixed until August 2017 costing £875 for an average energy user. | British Gas, EDF and Scottish Power are among the firms to have repriced a fixed-rate gas and energy deal, although the biggest increase was by small provider Extra Energy, which replaced its Fresh Fixed Price October 2017 deal, typically costing £770 a year, with one fixed until August 2017 costing £875 for an average energy user. |
Tom Lyon, energy expert at uSwitch, said: “For nearly three years, wholesale gas and electricity prices have been falling, leading to cheaper and cheaper fixed-term deals for consumers. But with concerns about future UK energy supply, the impact of Brexit, and a weaker pound, we are starting to see some suppliers increase the price of their cheapest deals.” | Tom Lyon, energy expert at uSwitch, said: “For nearly three years, wholesale gas and electricity prices have been falling, leading to cheaper and cheaper fixed-term deals for consumers. But with concerns about future UK energy supply, the impact of Brexit, and a weaker pound, we are starting to see some suppliers increase the price of their cheapest deals.” |
Before the referendum, the government had claimed that a leave vote would push up prices for households. In March, the energy secretary, Amber Rudd, talked of an “electric shock”, with prices rising by £500m a year – or £20 for every household. However, leave campaigners suggested a Brexit vote would allow the government to scrap VAT on fuel, bringing down costs. | Before the referendum, the government had claimed that a leave vote would push up prices for households. In March, the energy secretary, Amber Rudd, talked of an “electric shock”, with prices rising by £500m a year – or £20 for every household. However, leave campaigners suggested a Brexit vote would allow the government to scrap VAT on fuel, bringing down costs. |
The new deals launched since the vote vary hugely in price. Utilita’s Premium Energy deal has fallen in price, by £31, but remains more expensive than some of those that have risen in cost, at £1,136 a year for a typical energy user. British Gas’s HomeEnergy Fixed offer is just £25 a year more than the supplier’s previous version, but costs £1,044. | The new deals launched since the vote vary hugely in price. Utilita’s Premium Energy deal has fallen in price, by £31, but remains more expensive than some of those that have risen in cost, at £1,136 a year for a typical energy user. British Gas’s HomeEnergy Fixed offer is just £25 a year more than the supplier’s previous version, but costs £1,044. |
The wholesale prices of gas and electricity fell during 2015 and winter saw providers cut their standard tariffs and launch low fixed-rate deals. There were still “some very competitive” deals on the market, said uSwitch, and the average price of the 10 cheapest deals on the market was £99, or 11%, lower than in July 2015. It said that alongside one-year fixed-rate tariffs suppliers were also launching longer-term deals. First Utility, for example, has launched a three-year deal with a typical cost of £999 a year. | The wholesale prices of gas and electricity fell during 2015 and winter saw providers cut their standard tariffs and launch low fixed-rate deals. There were still “some very competitive” deals on the market, said uSwitch, and the average price of the 10 cheapest deals on the market was £99, or 11%, lower than in July 2015. It said that alongside one-year fixed-rate tariffs suppliers were also launching longer-term deals. First Utility, for example, has launched a three-year deal with a typical cost of £999 a year. |
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