Big six hike prices of cheapest tariffs by 16 per cent

The big six suppliers have hiked the prices of their cheapest fixed rate tariffs by an average of 16 per cent since September, analysis by Uswitch has shown.

The worst offender is Eon which upped the price of its cheapest tariff by an “eye-watering” £255 – or 34 per cent – to £1,015 a year.

The price comparison site attributed the price inflation to “soaring wholesale costs, which have been climbing at their fastest rate in several years” due the falling value of the pound following the Brexit vote and concerns over tight energy supplies this winter.

The only one not to enact a price increase is British Gas, although its cheapest tariff is still the costliest at £1,044. It remains £174 more expensive than the most competitive big six deal which is offered by EDF.

Uswitch energy expert Claire Osborne said: “Until the start of this summer, consumers hadn’t faced significant price rises for over two years, but we are now seeing more and more increases from suppliers big and small as rising wholesale prices continue to bite.

“The rising cost of many energy tariffs underlines the need for a more competitive energy market. The Competition and Markets Authority (CMA) spent two years closely examining the sector and so it’s vital that the government gives the final package, only published in June, the proper chance to work. The CMA remedies should help more customers move away from expensive standard variable tariffs, lower bills and improve competition.”

The prices are for a dual customer paying by direct debit and have been averaged across regions. They are based on Ofgem’s average consumption profile.

Source: Uswitch

Earlier this week Ovo Energy announced a 5 per cent price increase for its dual fuel customers.