It's unprecendented times in the world of energy. Here are some answers to questions you may have around what to do with your energy bills at the current time.
I'm on a fixed price deal, what should I do?
It is recommended that you see this out as the current energy prices will be much higher than the ones you are on. You do need to be prepared though for a significant price rise when your fixed deal ends.
Is it worth switching supplier at the current time?
No, for the first time since we set up 7 years ago it is not worth switching energy supplier. The cheapest prices available are the variable rates that are set at the price cap level and these are the same across all energy suppliers.
Will prices go up again?
The price cap that came in on 1st October 2021 will last for 6 months so prices cannot go up in this time. However, the level of the price cap will then be re-assessed again. It is based on wholesale energy prices and, as they have continued to rise in the last few months, we expect prices to rise again from 1st April 2022 (when the next price cap rates will be implemented). Some analysts have suggested that this could be by as much as £400-£500 per year which would see the price cap rise from £1277 per year to nearly £1700.
Should I look for a new fixed price deal or stay on variable rates?
Any fixed price deal currently available will be much higher than the variable rates that are subject to the price cap. Martin Lewis, the Money Saving Expert, shared these price comparisons on 07/10/21:
As such, if you do want a fixed price tariff for longer term certainty you will pay a premium in the shorter term for it. You would be protected from future price rises expected in April 2022, but you will be paying higher rates during the forthcoming winter period.
My company went bust recently, who will supply my energy now?
Ofgem have allocated new suppliers to take over all customers of the energy suppliers that have gone bust. Since September, these are:
|Old supplier||New supplier|
|Avro Energy||Octopus Energy|
|People's Energy||British Gas|
|Utility Point||EDF Energy|
|Igloo Energy||E.ON Next|
|Symbio Energy||E.ON Next|
|PFP Energy||British Gas|
|Hub Energy||British Gas|
Will more suppliers go bust?
9 companies have gone bust in the last few weeks and it is expected that more will follow. There were 50 energy suppliers at the start of the year and some analysts have suggested there may only be 10 left by the end of the year. Check out our video that explains what to do if your supplier goes bust: https://youtu.be/5ODah4c7ew4
Should I switch away from a smaller company in case they go bust?
There is a mechanism in place to protect customers if your supplier goes bust. If you are on a fixed rate with a smaller supplier then it would be worth making the most of those prices (as they are likely to be cheaper than anything else you can get at the moment). If the company goes under you will be transferred to another supplier and, in all likelihood, you will be paying much higher variable rates set at the price cap level.
We do however recommend that you:
Any questions please get in touch or follow us on Facebook for more regular updates on the current situation: @yorkshireenergydoctorcic