Challenger energy suppliers Bulb and Ovo Energy are the latest to announce price hikes with both firms upping bills by 5.1%.
Bulb’s price hike takes force from 12 August and will affect 450,000 customers on its standard variable rate tariff – the only tariff it offers. This will see the average annual bill rise from £879 to £923.
The renewable energy provider had warned customers in May that prices may rise due to increasing wholesale costs. It’s the second time it has raised prices this year, following a 2.8% hike in April.
Ovo’s increase, meanwhile, took force from 8 June, affecting its standard variable tariff customers. The increase saw average bills rise from £1,037 to £1,090 a year.
In a statement on its website, Ovo says: “The company is making these changes because the cost of commodities has increased substantially over the past year and we are increasing our prices to remain sustainable and responsible.”
Bulb co-founder Hayden Wood adds: “When wholesale energy costs change, our tariff does too. These costs have climbed throughout 2018 and are now 21% higher than they were in February. As a result, from August, our price will be going up by £4 per month for the average Bulb member.
“All our members receive 60 days’ notice of the rise, double what Ofgem recommend. And because we don't charge exit fees, our members can leave at any time, at zero cost.”
To ensure you’re on the best tariff, use a free Ofgem accredited comparison website to check if you can switch and save. Stephen Murray, energy expert at MoneySuperMarket comments: “Ultimately, whichever supplier you’re with, if you haven’t switched for a while now is the time to do it. Check your latest bill, go online and see what savings are available. The chances are you’re paying too much and one five minute journey on a comparison site will save you £250 or more.”
How other energy suppliers are upping prices
Of the Big Six providers, British Gas, EDF, Npower, Scottish Power, and SSE have dealt their cards as follows:
- British Gas customers saw prices rise by 5.5% from 29 May.
- EDF customers saw prices rise by up to 3.5% from 7 June.
- Npower customers will see prices rise by 5.3% from 17 June.
- Scottish Power customers saw prices rise by up to 6.9% from 1 June.
- SSE and M&S Energy customers will see prices rise by up to 6.7% from 11 July.