Are providers making cheap electricity prices a thing of the past?

Gas and electricity prices have risen considerably over the past 5 years and this has lead to certain members of Parliament believe that companies are changing the way they provide energy to significantly increase prices. The market has seen a rise of 60% during the last 5 years and customers are demanding answers.

Recent price increases are making finding cheap electricity prices a thing of the past which has led to providers collecting an extra £8 billion a year. In a time when it is expected that companies pass on savings to their customers, energy providers have come under heavy scrutiny.

The energy companies’ reason for the increase is the rise in wholesale price which is being forced up by shortages. However, MP’s are suggesting that this alone is not sufficient enough for the increase that the market has seen. It is estimated that over 4.5 million people are in “fuel poverty”; these families have to use around 10% of their disposable income to keep the lights on and stay warm.

The ability to compare gas prices will always be available but the prices and quotes that you will receive are going to be higher than you might have previously expected. It is hard to see what anyone can do to reduce the prices of gas and electricity so for now the best advice would be to budget for higher prices.

However, should the report on the price increase be in favour of the customer, there will be a multi-million pound windfall which will reduce the cost of energy and make searching for cheap electricity prices a possibility.

For now, ride out the storm and we might soon see that reduction that we all want. However, don’t assume your current tariff is the best. Search online for your ideal tariff.