Electricity and Gas Prices to Rise Again

Scottish Power, Npower, SSE and British Gas have all announced energy price increases this winter from 6%-9%. This will come as no surprise to many customers who have seen their energy prices rise consistently over the last few years, with suppliers appearing to ‘move in packs’ according to leading consumer watchdogs – seeking security in numbers by raising prices at the same time or following shortly after each other.

The hike has been blamed on increased costs caused by supply and demand issues in international energy markets but this will come as little consolation to customers who will be hit during their most energy intensive months.

The BBC website has a table charting the price ups and downs of the last couple of years from the Big 6 energy companies that shows how their prices have somewhat mirrored each other in increasing twice, before decreasing by around 5% and then increasing again in the case of 4 out of 6 companies. It will be interesting to see whether EDF and E-on follow suit this time around.

Reuters look at the impact on inflation and the wider economic implications that may result, citing a YouGov poll that showed British people viewing energy prices as the biggest threat to their standard of living over the next year, proving more serious than unemployment.

The Mirror pointed to the fact that 5.5 million homes in Britain are already classed as ‘fuel poor’ and that the rise in energy costs could send a further 330,000 the same way.

So what can be done?

If this is totally inevitable then what is available that can help people to cope?

The Green Deal launched this month and is designed to facilitate the greatest refurbishment of British homes since the Second World War but has come under criticism for being too complex.

Solar panels are perhaps the best green technology investment you can make, costing upwards of £4,000 but paying back in 7 – 10 years thanks to the tax-free income generated through the Feed-in Tariff. You are also protected from the bill increases that look set to continue indefinitely by using the clean energy generated by your panels instead.

For businesses, Southern Solar has just launched the Commercial Solar PPA Finance scheme, meaning you can cut back on energy costs right now and pay nothing up front. No matter how cheap your energy tariffs are, any business can save money thanks to the PPA, which guarantees you a low fixed rate for the solar electricity generated, whilst conserving your working capital. To find out more and arrange a free consultation, contact Southern Solar now.