Energy Prices On The Rise, Is It Time to Fix Your Energy Tariff?

As Ovo Energy, the country’s cheapest energy supplier, becomes the first to put up its energy prices this year, is it time to fix your energy tariff?

Whilst earlier this year some energy suppliers reduced their energy prices, Ovo Energy has now bucked the trend and raised its New Energy Fixed tariff by over 8%. Customers who have already fixed their energy prices on this tariff will not be affected.

Wholesale energy prices have been rising in the last couple of weeks and Ovo are blaming the overall rise in energy prices for their 8% hike.

Whilst fixed energy tariffs and online energy tariffs are generally currently being offered at a good discount against standard energy prices, this is likely to change. Basically the margin between these tariffs and wholesale energy prices is reducing and the result will be a need to increase the tariffs to improve margins.

So if you want to take advantage of the current discounts before they disappear, now is the time to fix you energy tariffs.

Standard energy prices are more likely to remain stable in the coming months.

The energy market can move quickly and it’s vital for customers to keep on top of what’s happening to ensure they get the best energy deal.

As Scott Byrom, utilities manager at moneysupermarket.com, said “If the cost of wholesale gas continues to rise we could see further activity from providers, and as a smaller player it is clear OVO Energy is more sensitive to changes in price than other larger energy companies.

We all know the energy companies tend to act like a house of cards, once one goes the rest will follow; should we see a summer of price rises then I’m sure many consumers will be extremely concerned about their ability to afford their energy bills, especially later this year as we approach the winter months.”

A standard energy tariff typically costs £1,200 a year, whereas the cheapest online energy deal is arounf £900.

Taking the plunge to switch energy supplier really is easy, easier than you might think. Be aware that energy suppliers will try and entice you to take up their tariffs saying they are the cheapest supplier. They may well be but the cheapest provider for you is determined  by where you live and how much power you use.

To help you get the cheapest, use an online energy price comparison services, such as uSwitch, Confused.com or EnergyHelpLine.

The great news is you may also get some cashback or freebies, for example, currently Confused.com are offering up to £30 cashback