Energy Advice Line joins warnings about post-Brexit price hikes

The Energy Advice Line has joined the chorus of energy experts warning that household and business energy prices could be about to rise, driven partly by the Brexit vote.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said the Co-op had already advised that it would be raising bills by between 3% and 6% from October 1 - representing an increase up to £70.

"Not only has the wholesale price of gas risen steadily over the past three months, but the value of sterling has fallen against the euro, representing a double whammy for British consumers," Mr Morgan said.

"This means thast as well as the wholesale price of energy rising, imports are 10% high still due to currency fluctuations.

"The Co-op has signaled that the average bill for dual-fuel customers on a standard plan will rise from £1,152 to £1,184 a year, while people with pre-payment meters could find their bills rising from £1,115 to £1,184.

"This is worrying and could be a sign that other suppliers are about to follow suit."

Independent energy consultant Cornwall Energy has confirmed that changes in the exchange rate since Brexit had made power more expensive in Britain. Gas imported from other European countries was used for household energy suppliers and for burning in power stations to produce electricity, it explained.

Mr Morgan said this meant that suppliers, especially smaller companies unable to buy their energy as far ahead as the Big Six, would inevitably pass on these extra costs to consumers.

"The only thing consumers can do is to fight back and switch suppliers," Mr Morgan said. "Despite the overall upward trend, good deals are still available, even as we head into winter. It's crucial that consumers shop around - ideally come to us for advice about the best deals available."

Even without the upward pressure on energy bills, Mr Morgan said, the Competition and Markets Authority recently concuded that customers who stayed on the most expensive standard tariffs were collectively wasting as much as £1.7 billion a year.

"It makes complete sense to regularly switch supplier and seek out the good deals elsewhere, regardless of what's happening to wholesale energy prices and the exchange rate," Mr Morgan said.

The Energy Advice Line is one of the UK's leading price comparison and switching services for business and domestic energy customers. It is also an advocate for energy reform and has campaigned for a better deal for energy users, uncluding calling for a ban on cold calling and changes to regulations to make it easier for all consumers to switch suppliers.

The service is completely independent and free. Consumers can quickly and simply search the market for the best available energy deals from an extensive panel of small and large energy suppliers. THe service also offers a free advice line for business energy customers.

For further information visit energyadviceline.org.uk

Household prices to increase

The Energy Advice Line has urged energy users to regularly switch suppliers following a new report predicting households will be paying £100 per year more for their energy within five years.

Julian Morgan, managing director of the price comparison, switching and advice service for energy users, said the report showed the importance of keeping on top of rising prices by switching.

Independent energy consultancy Cornwall Energy predicts that household bills will have to rise to fund government policies designed to keep the lights on a support green energy.

"Policies designed to play a key role in fighting climate change don't come cheap and they will be a bigger fact of life in years to come," Mr Morgan said.

"But this doesn't mean there's nothing consumers can do to protect themselves from these extra costs - it's just a question of being a savvy shopper.

"This means not accepting the first deal that comes your way and seeking out the best bargains - the same approach you would take for any significany purchase.

"And with the costs of energy subsidies predicted to rise substantially, there's even more at stake than there was before."

The Cornwall Energy report said the subsidies paid by consumers to help suppliers cover the cost of various green energy policies would have risen by 124% by 2020 - 2021.

Analysts said that while the future cost of the actual energy remained uncertain, the costs of green energy policies were only heading in one direction: up.

The government claims it has taken various steps to reduce the burden on customer bills in the past 12 months, largely on the back of lower wholesale energy prices, but suppliers have been harshly crticised by consumer groups for not offering more generous cuts.

"Consumers really have to vore with their feet," Mr Morgan said. "There's nothing they can do about the subsidies that add extra costs to their bills, but consumers can switch to lower cost competitors and make significany savings in the process.

"Many energy users feel there is nothing they can do about these extra costs but, indirectly, there certainly is - by moving to suppliers where tariffs are lower.

"That's why it makes sound financial sense to use our free service - it's independent, impartial and quick. With a few strokes of a computer key consumers can see how much they save - and then we do all the legwork to arrange the switch."

The Energy Advice line Line is a consumer champion and an independent price comparison and switching service for householders and small and medium-sized businesses. The service enables consumers to quickly and simply compare electricity and gas prices, and to switch to the best available deal on the market.

The service also offers free advice and a contract management service, including alerts to remind business consumers when their fixed-term energy contracts are about to end.

For further information visit energyadviceline.org.uk

Big Six market hold is slipping

New research shows that one in six energy customers are now actively choosing an independent supplier. This has grown from one in eight dual-fuel customers over the past year and is predict to grow still.

Cornwall Energy conducted a survey finding that 17.4% of dual-fuel customers now received their supply from independent suppliers, such as themselves.

Robert Buckley, director of Cornwall Energy, said: "This data shows one of the biggest shifts to independents in the past 12 months."

The Big Six consists of British Gas, EDF Energy, npower, E.ON, Scottish Power, and SEE. Combined they have lost a total of around 7.1 million customers to independent suppliers since 2011. The dual-fuel market share of the big six has fallen from 99.3 per cent in 2011 to 82.6 per cent in 2016.

Aloing side this new research from Which? has found the cost gap between the cheapest dual fuel tariff and a standard dual fuel tariff from one of the so-called 'Big Six' suppliers has soared up to 81% in the last two years. The cheapest dual fuel deal available has increased from £182 to £329 since 2014.

At one point during its research in February 2016, Which? found that people on standard tariffs could save £400 a year by switching away from the Big Six suppliers to the cheapest tariff.

A standard tariff is what you are moved onto once your energy deal comes to an end, but these tend to be very expensive. Millions are thought to be on these tariffs with the Big Six and paying much more than they need to.

Make sure that the price you're paying is fair, use an independent price comparison service such as energyadviceline.org.uk - and make the most of the free switching service and account management.