Energy firms ditch cheapest deals

Energy firms ditch cheapest deals
12 July 2016

Whether or not you voted to remain or leave, fact is, the immediate fallout has been a mess, and the markets are up-and-down like a teenager's mood.

Thanks to an uncertain market and the wobbling value of the sterling, big businesses don't quite know what to do, so they're doing what they do best - acting in their own interests.

As such, the cost of fixed rate energy deals has shot up by (up to) £105 a year, since the Brexit vote.

According to research from price comparison site uSwitch, a dozen deals have been given the boot, and replaced with pricier tariffs, since the UK voted to leave the European Union.

Economic uncertainty, as well as a rising cost of wholesale energy is pushing prices upward.

In the past, energy companies have tended to replace fixed rate tariffs with cheaper deals, however, in the last few weeks, deals have been withdrawn and replaced with more ­expensive alternatives.

The average increase is £41 a year, but some suppliers have whacked their deals up by a lot more.

For example, Extra Energy axed a deal that worked out at £770 a year, and have replaced it with one that will cost £105 more, at £875.

Tom Lyon, uSwitch's energy expert, 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."

“But there are still some very competitive deals on the market, offering significant savings against the average big six standard variable plan.

“Consumers concerned about rising energy costs should shop around and consider switching to a fixed term tariff, offering protection against any potential future price hikes."

TOPICS:   Utilities


  • redtoon1892

    Isnt it time you gave up this almost daily sniping at britexit ?its getting tedious.

  • mooch

    Thanks for telling us about rising energy prices. Shame some people missed the point entirely. 

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